Understanding SWAPD Bank Wire Payments
SWAPD utilizes a SWIFT GPI enabled bank account, enabling rapid wire transfers to other banks within the same network, spanning over 2000 branches worldwide. However, if the recipient’s bank or any intermediary banks in the payment route are not part of this network, delays in seller payouts or buyer refunds may occur. This article provides insights into how our bank wire payments function and what to anticipate during delayed payouts.
Deciphering Intermediary Banks
Intermediary banks are financial institutions through which our payments may pass before reaching the recipient’s or seller’s account. Given that most of our bank wires are international, payments seldom move directly from our account to the beneficiary’s bank account. Instead, they traverse additional financial institutions in various countries, each subject to its local laws and regulations.
Implications for You
Here are some scenarios that may arise, and which frequently occur:
- Intermediary banks may freeze the wire, seeking additional information from the sender/receiver. This process can be sluggish, extending buyer/seller payments by up to 21 days. Typically, this delay is attributed to international anti-terror and money laundering laws, with requested information often including the receiver’s date of birth, nationality, and current address.
- The country where the intermediary bank is situated might observe a holiday. As each country has its set of holidays, distinct from your calendar, bank closures can halt wire processing, leading to further payment delays.
- The COVID-19 pandemic has compelled some banks to suspend operations, causing significant delays in money transfers.
Accelerating Delayed Wire Payments
Unfortunately, there’s little that can be done to expedite delayed wire payments. For instance, if an intermediary bank freezes the payment, they often notify the sender’s bank days after holding the payment, and banks typically prioritize promptness. On average, it takes 4-5 days for the freezing bank to contact the sender’s bank (our bank), followed by an additional 1-2 days for our bank to reach our staff.
Tracking Delayed Wires
While it’s possible to track a delayed wire, the process is not straightforward. Once the wire leaves our company account, it falls under the jurisdiction of banking institutions. We lack visibility into the current payment status and cannot cancel the transfer. If the payment recipient does not receive the funds within the typical 1-5 business days (the global average for wire transfers), our company can initiate an investigation through our bank branch (Santander S.A.), incurring a $10 USD fee for wire tracking services. This process takes an average of 2-3 business days for our bank to locate the payment.
Common Causes of Delayed Wire Payments
Apart from wire holds for verification purposes, other factors contributing to payment delays include:
- Incorrect payment information: Providing incorrect payout information can lead to payment bouncing back to our company account, incurring a $30 USD bank fee.
- Non-USD beneficiary account: SWAPD exclusively processes payments in USD, so accounts unable to accept USD will bounce payments back, incurring a $30 USD bank fee.
- Challenges in certain countries: Some countries may experience longer payout times due to strict verification procedures, outdated banking infrastructure, or their status as tax havens.
In addition, receiver banks may freeze some wires, requiring proof of income for incoming payments. Banks seek clarity on the payment’s purpose before allowing fund withdrawal. If you require documentation explaining the payment’s purpose, SWAPD can provide it. Simply contact @INVOICES for a transaction summary in PDF format, which you can present to your bank.
In Conclusion
We acknowledge that waiting for your payment can be worrisome. However, in our operational history, we have never encountered a wire transfer that disappeared indefinitely. While some payments take longer than others, this is inherent to the banking industry. Should you need further support or have payment-related questions, please message your nearest @administrators. For additional help, send a chat message to @help.