· 2 min read
SEPA, ACH and SWIFT: how international transfers work
The three networks that move euros and dollars between accounts, how they differ in speed and cost, and the role of ISO 20022 in payment messages.
When money crosses borders, it doesn't travel on its own: it moves through payment networks that connect banks. Three of them show up in almost every euro and dollar transaction, and understanding the differences helps you choose the right route and predict when the funds will arrive.
SEPA: the euro network
SEPA (Single Euro Payments Area) brings together the European Union countries and other neighboring countries that follow the same rules for euro payments. Every account has an IBAN, and a standard SEPA transfer usually settles on the next business day. With the instant version, SEPA Instant, the money arrives in seconds, at any time.
ACH: the US banking network
ACH is the network that settles payments between accounts in the United States, such as payroll, bill payments and bank-to-bank transfers. Payments are processed in batches throughout the business day, and timing ranges from same day to a few days, depending on the type. To send via ACH, you need the account number and the bank's routing number.
SWIFT: the bridge to other countries
For countries outside these networks, the most common route is SWIFT, the messaging network that links thousands of banks worldwide. A transfer may pass through one or more intermediary banks, which explains the longer timelines and fees that are sometimes deducted along the way. That's why it pays to confirm in advance who covers each fee.
ISO 20022: one language for every message
ISO 20022 is the international standard for payment messages. It carries structured data about the payer, the payee and the purpose of the transfer, which reduces reconciliation errors and makes tracking easier. Payment networks around the world have been migrating to this standard in recent years.
How to choose
- Euros to Europe: SEPA, preferably instant when the receiving bank supports it.
- Dollars within the United States: ACH.
- Other currencies and countries: SWIFT, confirming fees and intermediary banks in advance.
- When both sides accept it: the digital dollar, which arrives in minutes, at any time.
In your account, every step of the transfer is visible, from sending to confirmation, with messages in the ISO 20022 standard.