Bank Transfers How They Work and What to Know
Understand how bank transfers work, the main types of transfers, how to make a payment, how long transfers can take, possible fees, security checks and the practical things to consider before sending money.
What is a bank transfer?
A bank transfer is a way of moving money electronically from one bank account to another. Transfers can be used for everyday payments, sending money to another person, paying bills or moving money between accounts.
The exact process depends on the type of transfer, the banks involved and the payment service being used. Some transfers can arrive quickly, while others may take longer depending on the payment method and timing.
Before sending money, it is important to check the recipient's details carefully. A transfer can be difficult to reverse if money is sent to the wrong account.
What information may you need?
The information required depends on the transfer. For many domestic payments, you may need the recipient's name and relevant account details. International transfers can require additional information.
- Recipient name
- Account or payment details
- Amount you want to send
- Payment reference where required
- Additional international payment information where applicable
Different ways to transfer money
The best transfer method depends on where the money is going, how quickly it needs to arrive and the service available through your bank or payment provider.
Domestic bank transfers
Used to move money between eligible accounts within the same country. These are commonly used for everyday payments and personal transfers.
International transfers
Used when money is sent across borders. Currency conversion, additional information, processing times and fees may apply.
Scheduled transfers
Some banking services allow customers to arrange a transfer for a future date or create recurring payment instructions.
Transfers between your accounts
You may be able to move money between eligible accounts held with the same bank or different providers.
Business bank transfers
Businesses can use bank transfers for suppliers, payroll, invoices and other operational payments depending on their banking arrangements.
Open banking payments
Some services allow eligible payments to be initiated through connected banking services after the required authorisation.
How does a bank transfer work?
While the exact process varies by bank and payment method, most transfers involve a similar series of steps.
Enter details
Enter the recipient information and the amount you want to send.
Check information
Review the account details, amount and payment reference before confirming the transfer.
Authorise
Complete the bank's required security or authentication process.
Transfer processed
Your bank processes the payment and the recipient receives it according to the applicable payment service.
How long does a bank transfer take?
Bank transfer times vary depending on the payment method, the banks involved, the time the transfer is submitted and whether the payment is domestic or international.
Some payments can be processed quickly, while others may take longer because of processing windows, weekends, holidays, security checks or international banking arrangements.
Can bank transfers have fees?
Some bank transfers are free, while others may involve charges. The cost depends on the account, provider, transfer type and destination.
Domestic transfer costs
Everyday domestic transfers may be included within an account's standard banking services, but this depends on the provider and account terms.
- Check your account's payment terms.
- Look for any transaction or service charges.
- Check whether limits apply.
- Review fees before confirming unusual payments.
International transfer costs
International transfers can involve additional costs, including currency conversion charges or fees associated with the payment service.
- Check the exchange rate being applied.
- Review transfer fees.
- Check whether intermediary charges may apply.
- Confirm the amount the recipient is expected to receive.
How to stay safe when making a bank transfer
Bank transfer scams can involve fake invoices, impersonation, urgent payment requests and other tactics designed to make people send money to the wrong account.
Before sending money
Take a moment to verify the payment details rather than relying on an unexpected message or request.
- Check the recipient name and account details carefully.
- Be cautious about urgent or unexpected payment requests.
- Confirm changed bank details through a trusted channel.
- Do not rely solely on an email requesting a payment.
- Use your bank's official website or application.
If something looks suspicious
Do not continue with a transfer if you are unsure about the recipient or payment request.
- Pause the payment.
- Contact the relevant person or business using trusted contact details.
- Contact your bank through an official channel.
- If a transfer has already been made, contact your bank promptly.
Domestic vs international bank transfers
Both transfer types move money electronically, but international payments can involve additional steps, costs and processing considerations.
What should you check before sending a bank transfer?
A bank transfer can be convenient, but checking the details before confirming the payment is important. This is especially true when transferring a large amount or paying someone for the first time.
Verify the recipient
Check the recipient's details carefully. If you received changed payment information by email or message, verify it through a separate trusted channel.
Check the amount and reference
Make sure the amount is correct and use the appropriate payment reference if the recipient has provided one.
Understand the timing
If a payment needs to arrive by a particular date, check the provider's expected processing time rather than assuming the transfer will arrive immediately.
Review fees
Check the applicable account and transfer terms, particularly for international payments or less common transfer services.
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Questions about bank transfers
Transfer times, fees and available payment methods can differ between providers. Check the latest information from your bank before making an important payment.
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