When making a USD transaction, how you send it matters. Choose the wrong method, and you might end up with slow transfers, high fees, or unfavourable currency conversions.
That’s where SWIFT, Fedwire, and ACH transfers come in. These are three of the most common ways to move USD, but they don’t all work the same.
Here at Leatherback, we make international payments simpler by connecting you to the right transfer route for your needs. By the end of this read, you’ll clearly understand the differences between SWIFT, Fedwire, and ACH transfers. How they work, when to use them, and the key things to keep in mind.
SWIFT Transfer
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a messaging network that banks use to send international payment instructions. It doesn’t move the money; it sends the details that tell banks where to send it.
How it works Your money often passes through one or more intermediary banks before reaching the final destination. Each bank in the process is identified by a unique SWIFT code, which the sender must provide to ensure the funds are routed correctly. Banks in the chain may take a cut or charge a processing fee.
Swift Code
A SWIFT code (also called a BIC – Bank Identifier Code) is an international bank code used to identify specific banks during cross-border transactions. It’s usually 8 or 11 characters long and follows a clear structure: the first 4 letters represent the bank, the next 2 letters show the country, the following 2 identify the location, and the last 3 (optional) characters point to a specific branch. For example, in the SWIFT code CHASUS33XXX, “CHAS” is JPMorgan Chase Bank, “US” indicates the United States, “33” represents New York, and “XXX” specifies the main office.
Sometimes, if your bank doesn’t have a direct relationship with the receiving bank, the transfer may pass through an intermediary bank. In such cases, you’ll also need to provide the intermediary bank’s routing number or SWIFT code, which acts as a bridge to make sure the payment gets to the right destination. This extra step is common in international transfers involving smaller banks or certain currencies.
Example of a SWIFT Code: BARCGB22XXX
BARC → Barclays Bank
GB → United Kingdom
22 → London location
XXX → Head Office branch
What Do You Need to Make a SWIFT Transfer?
To make a SWIFT transfer, you’ll need to provide specific details to ensure the funds reach the correct recipient:
The recipient’s full name and bank account number
The Recipient’s bank name and address
SWIFT CODE (also known as BIC) of the recipient’s bank
Currency and amount to be transferred
Purpose of payment, if required by the sending or receiving country
How Long Does a SWIFT Transfer Take?
Typical SWIFT transfers take 1 to 5 business days. The exact time depends on factors like destination country, time zones, the recipient bank’s internal processing, and how many intermediaries the payment passes through.
If you require proof of payment, most banks can provide a Telex copy or an MT103 document, a formal transfer receipt useful for audits or disputes, usually for an additional fee. Leatherback provides Telex copies at no extra cost with all SWIFT payments for transparency and assurance.
ACH TRANSFERS
ACH (Automated Clearing House) is the primary U.S. electronic payment network that moves money between bank accounts. It’s the backbone of domestic USD transactions like payroll, bill payments, and direct deposits, known for being low-cost, secure, and reliable.
When extended for cross-border use, ACH can be routed through international ACH (sometimes called Global ACH). This means USD is first processed through the U.S. ACH system, then delivered abroad using local clearing networks in the destination country. By avoiding the long chain of intermediary banks common with SWIFT, this method offers faster settlement times, fewer fees, and simpler tracking.
What Do You Need to Make an ACH Transfer on Leatherback?
Beneficiary Name
Beneficiary Country
Beneficiary Address
Account Number
ABA Routing Number (for ACH)
Currency and amount (usually local currency)
Payment reference or purpose (if required)
How Much Does an ACH Transfer Cost?
ACH transfers are typically low-cost or even free within the U.S. Because they move through the domestic Automated Clearing House network rather than multiple intermediary banks, they avoid the high charges common with SWIFT transfers. For cross-border USD routed through International ACH, costs remain minimal compared to traditional wire transfers, making ACH an efficient choice for frequent or lower-value payments.
How Long Does an ACH Transfer Take?
ACH transfers are processed in batches. Within the U.S., they generally settle the same day or within 1–2 business days, depending on cut-off times. For cross-border USD payments routed via ACH and local clearing systems abroad, settlement is still faster than SWIFT, usually 1–3 business days.
Delays may occur if payments are initiated on weekends or U.S. bank holidays, but overall, ACH remains one of the most cost-effective and time-efficient ways to move USD.
Fedwire Transfers
Fedwire is the real-time gross settlement (RTGS) system operated by the U.S. Federal Reserve. It’s designed for high-value, time-critical USD payments between U.S. financial institutions. Unlike ACH, which processes in batches, Fedwire settles each transaction individually and in real time, making it the fastest and most secure way to move USD domestically.
While primarily a domestic U.S. payment system, Fedwire also plays a role in cross-border USD transfers. International payments often start or end with Fedwire when a U.S. bank is involved, before the funds connect to systems like SWIFT to reach the overseas destination. This makes Fedwire a cornerstone for businesses sending or receiving USD globally.
What Do You Need to Make a Fedwire Transfer on Leatherback?
Beneficiary Name
Beneficiary Country
Beneficiary Address
Account Number
Wire Routing Number (for Fedwire)
Currency and amount
Payment reference or purpose (if required)
How Much Does a Fedwire Transfer Cost?
Fedwire transfers generally cost more than ACH but less than SWIFT. Since transactions are settled instantly and directly within the Federal Reserve’s system, they avoid intermediary bank chains and their fees. However, most U.S. banks charge a flat fee per Fedwire transfer, which can make it expensive for frequent small payments but cost-effective for large, urgent transactions.
How Long Does a Fedwire Transfer Take?
Fedwire transfers are processed instantly in real time during U.S. banking hours. Funds usually reach the recipient within minutes of initiation. For international USD transfers, the Fedwire leg of the journey is instant, but the overall time can extend if the transaction requires SWIFT settlement to a foreign bank.
Delays typically only occur if transfers are made outside Fedwire operating hours, on weekends, or on U.S. bank holidays.
Side-by-Side Comparison
Which Transfer Should You Use?
Here are some questions to guide your choice:
Are you sending money domestically or internationally? Local transfers suit domestic or regional payments; use SWIFT for wider global reach.
What currency do you need? Local transfers usually only support the local currency; SWIFT handles multiple currencies.
How fast do you need the funds? Local transfers are faster; SWIFT takes longer.
How much are you sending? Large transactions or complex payments often require SWIFT.
Do you require formal proof? SWIFT’s MT103 receipt provides formal confirmation, important for compliance and audits.
Common Use Cases
Use SWIFT Transfers For:
Paying international suppliers
Cross-currency payments (e.g. EUR to RMB)
Transfers outside local currency networks
Large-value payments requiring audit trails
Use ACH Transfers For:
Domestic employee payrolls and bill payments
Regional payments within a single currency zone
Smaller or frequent transfers
Cross-border payments via fintech providers using local routing (like Leatherback)
Use Fedwire Transfers For:
High-value, time-sensitive USD payments
Domestic U.S. business-to-business (B2B) settlements
Final and irrevocable transfers (e.g., securities, corporate treasury)
Large corporate or institutional payments that require real-time settlement
Leatherback simplifies global payments by combining the strengths of SWIFT, ACH, and Fedwire. Each method has its place: SWIFT connects you internationally, ACH handles low-cost domestic and regional transfers, and Fedwire delivers instant, high-value USD payments within the U.S.
We do this by intelligently routing transactions through the most efficient network. This way, you avoid delays, reduce fees, and keep your cash flow predictable.
