How long does an international payment take, and when can it be canceled?

Quick Overview

• How long an international payment takes depends on its type. A SEPA transfer is usually processed faster than a traditional SWIFT payment.
• For international payments, be sure to check the IBAN, as well as the SWIFT/BIC code and currency.
• If you discover an error, contact your bank immediately. By law, a payment order can only be revoked up to a certain point in time.
• If the funds have already been credited to the wrong recipient, it may be necessary to request their return as unjust enrichment.
• The sooner you begin addressing the error, the greater the practical chance that the bank will still be able to intervene in the process.

If you’ve sent a large amount to the wrong account and the recipient refuses to return the money, you don’t have to figure out the next steps on your own. We’ll help you assess your claim for a refund and prepare a pre-litigation demand or a lawsuit.

How Long Does an International Payment Take?

The transfer time depends primarily on the type of international payment, the currency, and the sender’s and recipient’s banks. SEPA payments in euros are generally faster, while SWIFT transfers can take several business days to process. The transfer time may be extended, for example, if the payment is initiated after the bank’s cut-off time, on a weekend or holiday, due to the involvement of correspondent banks, or because of the need for currency conversion.

Therefore, when determining how long an international payment takes, don’t rely solely on the moment the bank debited the funds from your account. The funds may not be credited to the recipient’s account until later.

International SWIFT and SEPA Payments

An international payment isn’t all that different from a standard one. The main difference is that you need to provide certain additional information and pay a fee. The amount of the fee depends on where you’re sending the payment or where it’s coming from. SWIFT payments are used for international transfers. However, if you need to make a payment in euros within the European Economic Area, you can use a SEPA payment. Compared to a standard international SWIFT payment , SEPA payments offer several advantages:

• Lower cost: SEPA payments are usually cheaper than traditional international SWIFT payments. Some banks even offer SEPA payments free of charge.
• Speed: SEPA payments are processed faster than traditional international payments. They are usually completed within one business day.
• Security: SEPA payments use advanced security protocols and standards that help protect you against fraud and unauthorized transactions.

Required Information for International Payments

An international payment must include the standard information required for any payment. In addition, however, it must also include other details specific to international payments. For SWIFT payments, the IBAN and SWIFT/BIC code are required, while for SEPA payments, the IBAN alone is sufficient. Let’s take a look at what these abbreviations mean.

IBAN

IBAN, or International Bank Account Number, is a standardized international account number format designed to improve the accuracy of cross-border money transfers. IBAN facilitates and automates the processing of international payments by reducing errors in account number entry.

IBAN Structure:

• Country: The first two letters in the IBAN represent the country code according to the ISO standard (e.g., CZ for the Czech Republic, DE for Germany).
• Check digits: The next two digits are check digits that help verify the integrity of the entire account number.
• BBAN (Basic Bank Account Number): The remaining part of the IBAN consists of the BBAN, which is the basic bank account number containing the bank code and the account number. It may also include additional identifiers that help identify a specific account within a given bank.

SWIFT/BIC Code

A SWIFT/BIC code is a standardized international code used to identify banks and their branches in international financial transactions. The acronym SWIFT stands for “Society for Worldwide Interbank Financial Telecommunication,” which is the name of the organization that provides a global network for financial communications between banks and other financial institutions. BIC stands for “Bank Identifier Code” and refers to the code itself, which is used to uniquely identify the bank receiving the payment.

Structure of the SWIFT/BIC code:

• Bank code: The first four characters are letters that identify the bank.
• Country code: This is followed by two letters representing the country code according to the ISO standard (for example, CZ for the Czech Republic).
• Location: The next two letters or numbers identify the city where the bank is located.
• Branch: The last three characters, which can be numbers or letters, are optional and are used to specify a specific branch of the bank (if not specified, “XXX” is used, which denotes the bank’s headquarters).

PayPal as an Alternative to Direct Bank Transfers

In addition to direct bank transfers, there are other ways to make international payments. One of the most common alternatives is using PayPal. It is an electronic payment service that allows users to make online transactions. This service essentially functions as a digital wallet where you store your bank details or credit card information and then use it to pay for goods and services online or to receive money, including international payments. Compared to SWIFT and SEPA payments, it offers a number of advantages:

• Transaction speed: PayPal payments are often processed almost instantly, while international SWIFT transfers can take several business days.
• Convenience and simplicity: PayPal allows you to send money using only the recipient’s email address or phone number, eliminating the need to know banking details such as an IBAN or SWIFT code.
• Security: PayPal provides robust security measures, including protection against fraud and unauthorized transactions. In addition, PayPal offers Buyer Protection, which can help you get a refund if you purchased an item that was not delivered or did not match the description.
• Global Reach: PayPal offers extensive reach, supporting transactions in more than 200 countries and in various currencies, which facilitates international buying and selling.

Canceling an International Payment: When Is It Possible?

However, no matter which method of international payment you choose, mistakes can happen. For example, you might send a larger amount than you intended or mix up a digit in the recipient’s bank account number. So how do you cancel the payment in this case?

First and foremost, contact the bank from which you sent the payment as soon as possible. It’s usually possible to cancel a payment before the due date specified in your payment order. In some cases, however, cancellation is possible even after the due date. Keep in mind, though, that you likely have only a few minutes—at most a few hours—to take this step. It’s also important to note that canceling a payment usually incurs a fee.

If the money has already been sent, there is still hope. In this case, you must work with your bank to send the recipient a request to return the funds. The recipient is obligated to return the money to you. However, it is possible that this will not happen. In this case, contact your bank again; they must provide you with the account holder’s identification details.

With this information, you can contact the account holder yourself, and if they refuse to cooperate, send them a pre-litigation demand and, if necessary, file a lawsuit for unjust enrichment. The good news is that in most cases, the pre-litigation notice alone is enough to resolve the issue, and if not, the court will rule in your favor—and you are very likely to succeed.

From experience: When it comes to mistakenly sent payments, the biggest mistake is waiting unnecessarily. The sender sometimes assumes for several days that the payment will be automatically returned and does not contact the bank until later. Therefore, we recommend addressing the error immediately upon discovery and keeping the payment confirmation as well as all communication with the bank and the recipient.

Is the recipient refusing to return the money sent by mistake? We’ll assess whether you’re entitled to its return and, depending on the situation, prepare a pre-litigation demand or outline the next steps for recovery.

Unidentified Payment in Your Account

You may find yourself on the other side of the equation, with an unknown payment appearing in your account. This is no time to celebrate—you need to immediately return the funds to the account from which they were sent. After all, the same rule applies to you: if you were to keep the money, you would be committing unjust enrichment. Otherwise, you could face legal consequences and accrue interest.

Summary

You can send an international payment, for example, as a SEPA or SWIFT transfer. How long an international payment takes depends on its type, currency, the banks involved, and the time it is initiated; SEPA transfers are generally faster, while SWIFT transfers can take several business days. To send a payment correctly, you’ll need an IBAN and, for some payments, a SWIFT/BIC code. If you notice an error, contact your bank as soon as possible. It is easiest to cancel an international payment before the bank accepts the payment order. If the funds have already been sent to the wrong recipient, you can request a refund and, depending on the circumstances, also file a claim for unjust enrichment.