Swift Transfers (T/T) Transfer Times

[clinique]

Is there anyone on the forum who can explain why the transfer times of SWIFT transfers to Thai bank accounts can be so different.

Sometimes the transfer will arrive within the same business day - other timesit takes up to 7 days ??

Asking the banks there seems to be no consistent answer - mostly they say it takes 3-7 days depending on country of origin , the currnecy remitted, and the amount.

In Singapore, UK, Australia we never have these problems. Maximum transfer time is overnight (ie: 24 hours).

What it is with Thailand and SWIFT transfers.

Occassionally have used Western Union and transfer to receivign money takes about 10 minutes. More expensive than SWIFT for sure but at least timing is guaranteed.

Any insights or experiences welcome.

Edited March 17, 2011 by clinique

[Daveroc]

The system is designed to have the transfers made within 24 hours, 48 hours max. An additional day may be added if the Banks do not have direct correspondent arrangements with each other and a third party is required. Other explanations for additional days could be that Banks on either end of the transaction or the the third party if one is used are having public holidays or weekends are involved. Occassionally the dispersement instructions may not be clear enough and the receiving bank needs to go back to the remitting bank for more instructions. This takes longer if it has to track back through the third party.

Getting out to 7 days without one of the forementioned issues being in play suggests it has got stuck on someones desk.

[CharlieH]

I asked this same question recently with Bangkok Bank, to cut a long story short they looked into it, I had several emails with London branch and was told the service was under review and would be "Improved" shortly. I had an email back 24 hrs later advising of the new improvement was in place. I tried the service on Monday and although it took my UK bank 3 days to move the money into Bangkok Bank London, they moved it to my account in Thailand overmight and it was showing on my balance this morning.(Thursday)

Well done Bangkok Bank, Excellent service and result.

Edited March 17, 2011 by CharlieH

[cardholder]

Whilst SWIFT transfers are not instantaneous there is now reason why they cannot be completion in one working day.

The issue is the 'handling' element of (a) transmitting and ( receiving the funds.

For example, I can press the button online to instruct a SWIFT transfer but it is the action/inaction of my bank at the UK end and my bank at the Thai end that will determine the actual timescale.

One big factor is international time differences and each bank's cut-off times for dealing with the transaction.

I generally find that if I get up at, say. 07.30 and instruct a transfer online at 00.30 UK time, there is a chance of the Thai bank receiving the funds in Bangkok in time to convert Sterling into my Kasikorn account the same day.

There are inconsistances - last month a friend and I instructed Halifax bank online within half an hour of each other (me being first) - his funds were credited to his Kasikorn account the same day, mine were credited the next day.

[ianguygil]

Without getting too far into all of this (I had written a whole explanation a year or so ago) it really depends on which SWIFT message the "beneficiary bank" - Bank B - gets. If they get a payment message confirming to them that the funds have been credited to their "due from" account with the other bank they can proceed quickly. This assumes they have a correspondent relationship with the sending bank (Bank A) as they have accounts with each other. In that case the Bank in the UK (Bank A) would credit a certain number of pounds to the account of Bank B (the Due To account from the Bank A perspective and the Due From account from the Bank B perspective).

If Bank A and Bank B do not have a correspondent relationship there will have to be "intermediary banks". In this case Bank B would get a "you will receive" message from Bank A. Then Bank A would credit the funds to their correspondent (Bank C). Assuming Bank C has a correspondent relationship with Bank B they would send a payment message to Bank B (either SWIFT or Domestic if they are in the same country). Then Bank B will match the "you will receive" message to the Payment message and will make the funds available.

So to make it simple, your bank in Thailand needs to know they actually have the funds hard and cleared before they will pay you any money at all.

It also depends on if they payment goes "straight through" i..e automatically, or if it requires a person to look at it.

This explanation skips a whole bunch of things but is probably more than any normal person wants to know.

Hope this helps...

Ian

Edited March 17, 2011 by ianguygil

[clinique]

Ian thanks for the info.

[GreenSnapper]

Europe to Kasikorn always took 2 working days in my tranfers.

Kasi-girl then calls my mobile and I haggle a bit the exchange rate.