When it comes to financial transactions across countries, it becomes more important to have a system that is trustworthy and reliable. However, international payments can sometimes take time, leaving both the sender and recipient unknown about the status of the transfer. This is where SWIFT payments help.
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global network that connects banks and financial institutions, allowing secure and efficient cross-border payments. One of its key advantages is that it provides an easy way to track transactions.
This article explains how SWIFT payments work, why tracking them is useful, and how businesses can set up an account to manage international payments smoothly.
What is a SWIFT Payment?
SWIFT is a global payment network, that helps banks connect with each other to ensure a transparent and secure way to transfer funds. It doesn’t manage funds or accounts. The SWIFT payment network is used by banks, brokerage institutes and trading houses, securities dealers, asset management companies, clearing houses, foreign exchange and money brokers.
The SWIFT isn’t owned by a single entity, it is overseen by central banks from G10 countries. The SWIFT payment network relates to more than 200 countries and more than 11,000 institutions use SWIFT for their financial processes.
Why Tracking Cross-Border Payments Matters
To ensure security, and regulatory compliance it’s important that organisations track thecross-border payments during a transaction. By tracking your foreign transactions, you can ensure that you are taking advantage of a more accountable and efficient global financial system.
- Preventing Financial Crime: Cross-border payments can be exploited for money laundering, terrorist financing, or fraud. Tracking these transactions helps relevant authorities identify suspicious patters, trace illicit funds, and disrupt criminal networks.
- Regulatory Compliance: Many countries have strict regulations, such as anti-money laundering (AML) and know-your-customer (KYC) requirements, that mandate monitoring international transactions. Tracking ensures banks and financial institutions comply with these laws, avoiding hefty fines or legal repercussions.
- Transparency in Trade: Tracking payments related to international trade ensures that goods and services are accurately valued, reducing the risk of under-invoicing or over-invoicing, which can distort trade balances and economic data.
- Efficiency and Trust: In a globalized economy, reliable tracking systems enhance trust between parties-banks, businesses, and governments- by ensuring payments are processed securely and reach their intended recipients.
- Consumer Protection: For individuals and businesses, tracking provides a record of transactions, helping resolve disputes, verify payments, and protect against scams or errors in cross border payments.
How to Track Your SWIFT Payment
Tracking your transactions through SWIFT is simple, just follow these steps to get the information:
1. Obtain Your Transaction Reference Number:
When you initiate an international transfer, your bank will provide a unique reference number. Keep this handy, as it is key to tracking the payment.
2. Contact Your Bank:
Many banks offer online portals or mobile apps where you can check the status of your transfer. If you prefer, a phone call to customer service can also clear up any uncertainties.
3.Use SWIFT GPI:
Some banks participate in a system known as SWIFT GPI (Global Payments Innovation). This service provides real-time updates on your payment, letting you see when it leaves your bank, moves through intermediary banks, and arrives at the recipient’s account.
Example: If the UK business’s bank supports SWIFT GPI, they can track the payment in real-time, reducing uncertainty and keeping the other supplier informed about when the funds will be credited.
Different banks might have various ways to show you the progress of your transfer, so it’s worth checking what services your bank provides.
How to Open a Business Account Online for Cross-Border Payments
A simple way to improve the management of international transactions is by opening a business account online. Many banks offer this service, allow companies to open accounts without the need to visit a branch. Look for an account that supports swift payment processing, provides tools to check the status of your transfers, and offers competitive foreign exchange rates. This makes it easier for businesses to handle cross border payments without any unnecessary delays or extra paperwork.
Conclusion
SWIFT has become a trusted tool for managing international transfers. By using this system, you can keep track of your funds, address any issues as they can arise, and ensure that all parties involved in a transaction are kept informed. Whether you are an individual sending money overseas or a business that depends on cross border transactions, taking advantage of these tracking features can simplify your financial transactions.
If managing global payments is a regular part of your operations, consider opening a business account online. With the right account and a clear view of your payment status, handling international transactions becomes a much smoother process.