How to do a bank transfer and send payments: a complete guide

What is a bank transfer?

In simple terms, a bank transfer is the movement of money from one account to another. The modern world of banking has made it possible to send money with the click of a button, from anywhere in the world (as long as you have an internet connection).

While in-person interactions are still available for those who feel less comfortable online, the digital age has fast-tracked the process. You can send money from any computer or smart device which gives you access to online banking.

In most cases, you won’t even be charged for transferring money domestically – although it’s common for there to be small fees on international transfers.

Different types of bank transfer and how to make them

There are three primary types of bank transfer: online, in-person, and telephone. These are all streamlined processes which make it easy for anyone to move money with minimal fuss. Select the option you feel most comfortable with, and remember the following advice:

Online transfers

As the name suggests, online transfers see you move money between accounts using internet banking or digital apps. Some factors to keep in mind when making this type of transfer include:

• You’ll need to have a smart device or computer in order to be able to log in and make a transfer

• Most banks now offer dedicated mobile apps specifically for their customers

• You may be asked to provide security questions and authenticate that it’s you using the app

How to make an online transfer

Making an online transfer is fast and convenient. Here’s a step-by-step guide on how to make an online payment:

1. Set up. Make sure you’re signed up for online banking. If you’re confused about how to do this, speak to your bank, or ask a trusted friend or family member for help. You’ll need things like your account number, full name, and address to create an account.

2. Select your service. Banking apps have lots of different service options. If you’re sending money, select the one which says “payments” or “transfers”.

3. Recipient details. Because you’re logged into your account, you don't need any personal data to prove who you are. You will, however, need the name, account number, and sort code of the person you want to send money to. Enter them when prompted to do so.

4. Send funds. Once you’ve entered their details, choose the account you want your money to come out of. Make sure all the details are correct, then finish the transfer by clicking ‘confirm’.

Once this process is complete, the money should be on its way to your intended recipient.

In-person transfers

These are the traditional types of transfer which many people became accustomed to making throughout most of the 20th and the early part of the 21st century. Your options are a little more versatile with in-person transfers, but it does also involve a lot more admin on your part.

• You’ll need to physically travel to a bank in order to make an in-person transfer

• Speak to the customer service representative at the bank to tell them what you want to do

• If you have cash, you can deposit this directly into someone else's account

How to make an in-person transfer

While slightly more arduous, some people feel more comfortable moving cash in this way. If you want to transfer money in-person, follow these steps:

1. Details. Once you’re in front of the bank clerk, you’ll need to provide them with all the details of the person you intend to transfer money to. That means things like their name, address, bank account number, and sort code.  

2. Deadlines. Find out when your money will arrive. This isn’t too important if you’re transferring money to a friend, but could be a big factor if you’re making a payment.

3. ID. You’ll need to bring some form of ID to prove who you are. You’ll also need to bring the card of the account you want the money to be transferred from.

4. Complete a form. The final step in the process will see you fill out a bank transfer form. This will let the clerk know where you are transferring the money, as well as how much you intend to send.

Telephone transfers

Telephone transfers are another alternative for those looking to send money elsewhere. They’re convenient in the sense that you don’t have to leave your home, but less immediate than an online transfer.

• Sometimes, banks will use automated recordings to carry out this kind of transfer

• You can also speak to a human representative at your bank

• Whether you talk to a person or a machine, they should be able to guide you through the process

How to make a telephone transfer

Telephone banking is relatively simple, and similar in essence to making a payment online:

1. Call up. Phone your bank. There’s a good chance they’ll have a dedicated number of telephone banking, so make sure to use this instead of their general enquiries line.

2. Give them details. Whether it’s a robot or a real person, you’ll be asked a number of questions – such as where you are transferring the money to, what account you want it to come out of, and how much you want to move. You’ll also be asked to confirm who you are.

3. Confirm. You’ll be read back the details you gave and the information about the transfer. Confirm they’re correct (assuming they are), then finish the transfer.

What details are needed for a bank transfer?

In order for a bank transfer to be processed properly, you’ll need to have a variety of personal information to hand, including:

• The full name of the recipient

• The bank account of the recipient

• The sort code of the recipient

• The address of the recipient

• The name and address of the bank you’re sending money to

• A reference phrase or number to make it clear what the money is for

When it comes to online banking, security is being constantly monitored and improved. For that reason, you might also be asked to carry out two-factor authentication (usually in the form of a code sent to you) to prove you are who you say you are.

You will also often be sent a warning message, asking you to confirm that the account you’re paying into isn’t a fraudulent one. Once you confirm this, the payment will be sent.

How to set up a standing order

If you know a fixed payment is going to be made to the same person on a regular basis, you can save yourself time by setting up a standing order. This saves you the hassle of having to remember to transfer money by a set date, as well as preventing you needing to scramble for personal information every time you want to send money.

Whether you choose to set up a standing order online or by visiting a branch, you’ll need all of the following information:

• The amount you want to send

• The full name of the person you’re sending money to

• The person’s sort code

• The person’s account number

• A clear payment reference

• The day you want the money to come out of your account every month

• The length of time you want the standing order to continue for

Using this information, you’ll either be able to create your own standing order on a mobile app, or have a bank employee do it for you in your local branch or over the phone.

If you have a set amount coming out of your account on a certain day, be sure to always have enough money sitting around to avoid going into your overdraft.

How to make an international bank transfer

Making an international bank transfer is simpler than some might expect. That’s true whether you’re transferring directly through a bank, or trying to send money overseas using a dedicated money transfer service.

In both instances, you should expect to pay fees on your transfer. Typically, these will be more expensive if you opt to send money through your bank.

Through your bank

If you’re making a transfer through your bank, you have the option to do it either in a branch, or by using a mobile app. In order to send money overseas, you’ll need the International Bank Account Number (IBAN) and Bank Identifier Code (BIC) of the person and bank you’re transferring money to.

These effectively serve as the replacement for a sort code and account number in a traditional UK transfer. Think of it this way:

• IBAN – This is the account number for your intended recipient. You’ll need to find out what it is in order to send money to them.

• BIC – Also known as a SWIFT code, this helps to instantly identify both your bank and that of the recipient.

Just as with sending money domestically, you’ll be asked how much you want to send, the name of recipient, and the aforementioned account details.

Using an international money service

The world is a lot smaller than it used to be. It’s quite common to have friends and family all over the world. That’s why services now exist to make it quicker, easier, and cheaper to send money to all corners of the globe.

Here’s a step-by-step guide on how to send money to someone in another country using a transfer service:

1. Create an account. First up, you’ll need to create an account with your chosen transfer service. Create a secure password, and sign up with an email address you regularly use.

2. Start the transfer. Click the option to send money, then enter basic details like the currency you want to transfer into, and how much you intend to send. At this point, you’ll be able to see how much you can expect to pay in fees.

3. Enter recipient details. Next you’ll be asked to enter details like the IBAN, BIC, and full name of the person you’re sending money to.

4. Pay. Finally, you can choose to send money either by your debit or credit card, or by a bank transfer. The bank transfer takes longer, but will generally be a little cheaper.

If you’re considering using an international money transfer service, WorldRemit is a tried and tested option. We’ll help you move money all across the world, quickly, safely, and for some of the lowest fees around.

The difference between domestic and international bank transfers

As you might be learning, there are some subtle differences between the transfer process of a domestic and international payment. These will vary between extra costs you might have to front, as well as the administrative aspect of the transfer.

• Fees. Sending money to a domestic bank account won’t typically cost you anything. When sending money overseas, you can expect to pay a fee. This will vary depending on the method of transfer you choose.

• Time. Most of the time, domestic payments will be in the intended recipient’s account within a couple of hours. In some cases, it can take days for international payments to arrive.

• What you need. You’ll need additional information (such as an IBAN or BIC) to send money overseas. While these are similar in nature to sort codes and account numbers, they might not be something you immediately have to hand.

• Exchange rates. The biggest difference between domestic and international transfer is the exchange rate. This will determine how much money someone receives when money is sent to them. This will vary on a day-to-day basis.

What details you need for an international transfers

The details you’ll need for an international bank transfer tend to be different to those used when moving money domestically. Make sure to keep this list in mind when transferring money to someone overseas.

• The recipient’s IBAN

• The BIC or SWIFT code of the recipient’s bank

• Their full name

• Their full address

• Their company name (if they’re a business)

You may need to reach out and ask the person you’re sending money to for some of these details.

How to avoid mistakes and issues when transferring money

One of the biggest problems when moving money comes in the form of errors or mistakes made during a transfer. Fortunately, these are also what you have the most control over. Make sure to educate yourself in order to avoid making some of these common issues:

• Incorrect details. If you enter the wrong information during the transfer process, your money may be returned to you (and you could face a fee). Go over the details you have before clicking on confirm.

• Going overdrawn. Make sure you have enough money in your account to be able to afford the cost of both the transfer and any additional fees.

• Check for inconsistencies. If the name you’ve been given doesn’t correspond with that of the account you’re transferring to, it could be a scam. Make sure you know who you’re sending money to.

• Being misheard when giving info. If you try to transfer money over the telephone, there’s a chance you could be misheard (either by a person or a robot). Make sure to have them repeat what you’ve said at the end, before confirming any movement of money.

Do you have a better understanding of how a bank transfer works? Make sure to reach out to the WorldRemit team if you have any questions about sending money overseas. We’re happy to help.