Sending Money Abroad: IBAN, SWIFT and Costs Explained
Sending money abroad: SEPA vs. SWIFT, typical costs (15 to 50 euros plus an exchange-rate markup), timing, OUR/SHA/BEN explained and how to find the right details.
A transfer within the EU is now as simple as a domestic one: enter the IBAN, pay nothing, done in one business day. The moment you send money to New York, Istanbul or Bangkok, though, exchange-rate markups, correspondent-bank fees and delays of several days enter the picture. This guide explains the difference between SEPA and SWIFT, what an international transfer realistically costs and how to avoid the common pitfalls.
Sending money abroad: what you need to know
Whether it is rent for a holiday flat in Croatia, support for relatives in Turkey or a business invoice to the United States, international transfers are part of everyday life. But the cost, timing and required details differ considerably depending on whether you send money inside or outside the SEPA area.
This guide explains the difference between SEPA and SWIFT transfers, which details you need and how to save on fees.
SEPA vs. SWIFT: which transfer when?
SEPA transfer (within Europe)
The SEPA transfer (Single Euro Payments Area) covers 36 countries: every EU member state plus Iceland, Liechtenstein, Norway, Switzerland, Monaco, San Marino, Vatican City and the United Kingdom. You only need the recipient’s IBAN; a BIC has not been mandatory for cross-border SEPA payments since 2016.
Advantages:
- Cost: Like a domestic transfer, free or at most a few cents
- Timing: A maximum of 1 banking business day (instant transfers in under 10 seconds)
- Currency: Always in euros, no exchange-rate fees
SWIFT transfer (worldwide)
For transfers outside the SEPA area or in foreign currencies, the SWIFT network is used. SWIFT (Society for Worldwide Interbank Financial Telecommunication) connects more than 11,000 banks in over 200 countries.
Characteristics:
- Cost: Between 15 and 50 euros per transfer (plus possible correspondent-bank fees)
- Timing: Typically 2 to 5 banking business days
- Currency conversion: An extra cost from the bank’s exchange-rate margin (often 1 to 3 % above the mid-market rate)
Which details do I need?
| Item | SEPA | SWIFT |
|---|---|---|
| Recipient name | Yes | Yes |
| IBAN | Yes | Yes (if available) |
| BIC/SWIFT code | No (optional) | Yes |
| Bank name and address | No | Often required |
| Reference/purpose | Yes | Yes |
| Amount and currency | EUR | Free choice |
For a SWIFT transfer the recipient bank’s BIC/SWIFT code is mandatory. You can find it with our tool to look up a SWIFT code or via the BIC calculator. You can check the recipient’s IBAN for validity beforehand with the IBAN validator.
What an international transfer costs
The total cost of an international transfer is made up of several components.
1. Your own bank’s transfer fee
Your bank charges a base fee for the international transfer. At most German banks this sits between 10 and 50 euros, depending on the destination country and the amount.
2. Correspondent-bank fees
With SWIFT transfers the money is often routed through correspondent banks (intermediary banks). Each intermediary bank can deduct its own fee, typically 5 to 30 euros. The more “exotic” the destination country, the more intermediate hops are needed.
3. Exchange-rate markup
If you transfer in a foreign currency, your bank applies a markup on the exchange rate. At branch banks this is often 1 to 3 percent above the actual market rate (the mid-market rate). On an amount of 1,000 euros that can quickly add 10 to 30 euros in extra cost.
Fee options: OUR, SHA, BEN
With a SWIFT transfer you can set who bears the fees:
| Option | Meaning | Who pays |
|---|---|---|
| OUR | ”Our costs” | Sender pays all fees (own bank plus correspondent banks) |
| SHA | ”Shared” | Sender pays their own bank fees, recipient pays the correspondent-bank fees |
| BEN | ”Beneficiary/recipient” | Recipient pays all fees (deducted from the amount) |
Recommendation: Choose OUR when the full amount should reach the recipient, for instance when paying invoices or supporting family members. With SHA (the default) or BEN, a smaller amount is credited to the recipient.
Timing: when does the money arrive?
| Transfer type | Timing |
|---|---|
| SEPA transfer | 1 banking business day |
| SEPA instant transfer | Under 10 seconds |
| SWIFT within Europe | 1 to 3 banking business days |
| SWIFT outside Europe | 2 to 5 banking business days |
| SWIFT to exotic countries | Up to 7 banking business days |
The actual timing depends on the number of correspondent banks, the destination country and compliance checks. Weekends and public holidays (in both the sending and the receiving country) extend the timeline.
Popular destination countries for transfers from Germany
Germany is among the countries with the highest volume of international transfers in Europe. The most common destinations:
| Country | IBAN length | Transfer route | Country page |
|---|---|---|---|
| Turkey | 26 characters | SWIFT (not SEPA) | Turkey |
| Poland | 28 characters | SEPA | Poland |
| Croatia | 21 characters | SEPA (since joining the EU) | Croatia |
| Serbia | 22 characters | SWIFT | Serbia |
| Bosnia and Herzegovina | 20 characters | SWIFT | Bosnia and Herzegovina |
| Ukraine | 29 characters | SWIFT | Ukraine |
| Kosovo | 20 characters | SWIFT | Kosovo |
For each of these countries our country pages show the correct IBAN format, example IBANs and the matching BIC/SWIFT code.
Tips for cheaper international transfers
1. Use SEPA where possible
Always check first whether the destination country lies inside the SEPA area. If it does, transfer via SEPA; it is far cheaper and faster than a SWIFT transfer. A transfer to Poland or Croatia, for example, works via SEPA.
2. Compare the exchange rate
If you must transfer in a foreign currency, compare the rate your bank offers with the current mid-market rate (for instance on ECB or Reuters pages). The difference is your real cost.
3. Choose the fee option deliberately
For recurring transfers to the same recipient, it is worth choosing the OUR option. That way the full amount always arrives and the recipient has no deductions.
4. Check the IBAN and BIC beforehand
Incorrect bank details lead to returned payments, and those cost extra fees. Check the recipient’s IBAN with the IBAN validator and look up the BIC via the BIC calculator before you submit the transfer.
Frequently asked questions
Do I need a BIC for a transfer to Turkey?
Yes. Turkey is not a SEPA member, so for transfers there you need the BIC/SWIFT code of the Turkish recipient bank in addition to the IBAN. You can find the BIC via our tool to look up a SWIFT code. We explain Turkey’s IBAN format (26 characters) on the page IBAN Turkey.
What does a SEPA transfer abroad cost?
Under EU regulation, a SEPA transfer within the euro area may not cost more than a domestic transfer. At most banks it is free. Transfers to SEPA countries with a different currency (for example Poland in zloty) can still incur exchange-rate fees if you do not transfer in euros.
Why is my international transfer taking so long?
SWIFT transfers run through correspondent banks that act as intermediaries between the sending and the receiving bank. Each intermediate stop needs time for processing and compliance checks. Public holidays in the destination country, time-zone differences and stricter security checks for certain countries add even more time.
Can I recall an international transfer?
With SEPA transfers you have no general right of recall, but you can ask your bank for a recall; the receiving bank, however, is not obliged to return the money. With SWIFT transfers a recall is possible as long as the money has not yet been credited, though it often costs an extra fee of 20 to 40 euros. In any case, act as quickly as possible.
Worked example: transferring 1,000 euros to the United States
To make the real total cost concrete: a transfer of 1,000 euros to an account at JPMorgan Chase in New York, in US dollars.
| Item | Amount |
|---|---|
| Base fee, own bank (Sparkasse, 0.25 % of the amount, min. 15 euros) | 15.00 € |
| Exchange-rate markup (2 % over the ECB mid-market rate) | ~20.00 € |
| Correspondent-bank fee (SHA, typical) | ~15.00 € |
| Total cost | ~50 euros on a 1,000-euro transfer |
| Amount that reaches the recipient | ~945 USD (at 1.07 EUR/USD) |
With the OUR fee option the correspondent-bank fees would fall away (the recipient gets the full sum), but your own costs rise by 15 to 30 euros. The exchange-rate markup always remains, regardless of the fee option.
Fintech comparison: Wise (formerly TransferWise), Revolut or N26 often offer total costs between 5 and 15 euros for the same transfer, close to the mid-market rate. The downside: the destination country and currency must be supported, and for large amounts or business payments fintechs require additional identity-verification steps.
The bottom line
Within Europe, transferring money abroad is now an everyday task: enter the IBAN, send, done. Outside Europe it pays to look closely at fees, the exchange rate and the receiving options; a SWIFT transfer of 1,000 euros can easily cost 40 to 50 euros at your bank, often a third of that at fintechs. Checking the IBAN with the IBAN validator and looking up the BIC via the BIC calculator beforehand saves time and chargeback fees in both cases.
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ByMateusz Viola · Last reviewed