What types of bank transfers exist, and which should your SME use?

A bank transfer is not just pressing a button and watching money appear somewhere else. It is a process with its own logic—and understanding it gives you control to manage your business finances more efficiently. This is your starting point to understand what types of bank transfers exist and how to choose the smartest one for each payment.

Understanding the hidden journey of your money

Think of it like shipping a package. To get it to the destination, you need the right address and a clear route. In finance, “postal codes” and “addresses” are just as critical.

Two codes matter most:

• IBAN (International Bank Account Number): the precise “address” of the recipient’s bank account. If it is wrong, the money won’t arrive.
• BIC (Bank Identifier Code), often called SWIFT: the “postal code” that identifies the bank (and country) globally.

The route you don’t see on screen

When you send a transfer—especially across banks or countries—money does not travel in a straight line. It moves through interbank clearing systems.

Think of these systems as logistics hubs that process thousands of “packages” (payments) at once. They validate details, settle balances between banks, and ensure the process is secure and compliant.

A transfer is not a direct movement of funds. It is a chain of messages and instructions between banks that ends when the recipient’s account is credited. That chain may include intermediaries.

What determines speed and cost?

Why do some transfers take minutes and others days? It usually comes down to:

• Geography: Domestic and SEPA transfers are simpler and cheaper than sending money globally.
• Intermediary banks: International SWIFT transfers often require correspondent banks—each can add time and fees.
• Cut-off times: Many banks process standard transfers in batches. If you miss the cut-off, processing shifts to the next business day.

Knowing this gives you an advantage: you can anticipate delays, understand fees, and choose the best transfer type for each payment.

SEPA transfers: your key to the European market

If your business operates in Europe, you have likely heard “SEPA” many times. The Single Euro Payments Area (SEPA) removes banking borders across 36 member countries, making euro payments feel like domestic ones.

The backbone is the SEPA Credit Transfer (SCT)—the standard option. Its key benefit is predictability: funds arrive no later than the end of the next business day.

The day-to-day impact for an SME

This predictability is valuable for treasury planning. In practice, it helps with:

• Payroll payments
• Supplier payments
• Internal cash movements across European accounts

But as your business grows, a new challenge appears: paying 200 invoices or 80 salaries one by one is slow and error-prone.

The technical challenge behind bulk payments

Banks often require SEPA XML remittance files for bulk payments. Instead of hundreds of manual transfers, you upload one ISO 20022 XML file that contains all payment orders.

If you want more detail, see our guide on SEPA bank transfers.

Instant transfers (SCT Inst): speed as a strategy

In finance, time is liquidity. Here is where instant transfers (SCT Inst) change the game: the money reaches the recipient in under 10 seconds—even on weekends and holidays.

This is strategic for:

• Urgent supplier payments
• End-of-day cash certainty
• Fast reaction to business opportunities

In Spain, adoption has grown fast. Instant transfers have become a mainstream tool, especially as pricing has improved.

There are still constraints:

• Amount limits (commonly €100,000 per operation in SEPA)
• Both banks must support SCT Inst

If you want the full breakdown, see our guide on instant transfers.

SWIFT transfers: operating globally

Outside Europe, the rules change. You leave the simplicity of SEPA and enter the world of SWIFT transfers.

SWIFT is a secure messaging system used by 11,000+ banks globally. It does not move money itself; it transmits payment orders. The funds often travel through correspondent banks, which adds time and cost.

Time and cost: the key differences

• Speed: usually 2 to 5 business days (sometimes more). For more details, read how long an international transfer takes.

• Fees: multiple banks may charge fees. This is where OUR / BEN / SHA matter:

• OUR: sender pays all fees (recipient receives the full amount).
• BEN: beneficiary pays all fees (fees deducted from the received amount).
• SHA: shared (most common): sender pays their bank’s fees; recipient pays theirs and any intermediaries.

SEPA vs SWIFT (practical comparison)

Feature	SEPA	SWIFT
Geography	36 SEPA countries	200+ countries
Currency	Euro only (€)	Most currencies
Speed	1 business day (standard) / seconds (instant)	2–5 business days (often)
Cost	Low or regulated	Variable, often higher
Intermediaries	No	Common

FAQ

Transfer vs internal transfer (between your own accounts)

An internal transfer (“move money between your own accounts”) is typically instant and low-cost, often within the same bank. A bank transfer sends money to another person or company and can involve different networks and timelines.

Can you cancel a transfer after sending it?

Instant transfers are generally irreversible. Standard transfers may be cancelable only in a small window before processing—otherwise you must request the recipient to return the funds.

What do OUR, BEN and SHA mean?

They define who pays the fees in international transfers and can prevent misunderstandings with your suppliers.

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If your SME manages dozens or hundreds of payments, generating SEPA XML files manually is slow and risky. Tools like ConversorSEPA convert Excel lists into validated bank-ready XML files in seconds—saving time and reducing errors.

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