Delayed money transfers can be a real nuisance, particularly if you are sending money to family and friends, and especially when it is an emergency.
If you’re currently waiting for money in transit, don’t panic. This guide will help you understand the reasons why your transfer could be taking a long time, give you some actions you can take if you haven’t already and also talk about how you can prevent money transfer delays in the future.
This includes how you can compare money transfer providers to find the best possible option for sending to your chosen destination.
Why is my money transfer delayed?
Several factors can cause delays, some of which are in your control and others that aren’t. Understanding these factors can give you a bit of clarity and may even make for a speedier transfer next time.
Payments don’t always pass through just one bank, but several
Traditional banks can often take a longer time to process money transfers compared to money transfer specialists. Often they have to pass through multiple different intermediary banks in a network.
Because each of these banks has to process the payment, the process takes longer than if you were sending money to someone locally. The more intermediaries in the chain, the longer it can take for your money to get to its final destination.
What’s more, not every money transfer service is built equally. Some of them might rely on slower networks or several intermediaries that add time to the transfer. That’s why it’s a good idea to compare providers first and pick the one that clearly indicates how long your transfer is likely to take at the outset.
Banks might be in different time zones
Global money transfers operate across multiple countries and time zones. What’s “instant” in one country might be “next business day” elsewhere. Public holidays in either the sending or receiving country can add unexpected delays.
For example, sending a transfer on a Friday evening in the UK to India may not begin processing until Monday morning local time.
Providers might need to check transfers
Providers who send money have to comply with anti-money laundering and Know Your Customer laws. If the amount you are sending is unusually large or the country you are sending to is considered ‘high-risk’, your transfer might be flagged. In this case, the provider will have to manually review the transfer, which can lead to it being held up for several hours or even days.
This can also happen if any documents or identification you’ve provided are missing and unclear, so it’s super important to ensure you provide is in order, in date and accurate. The same goes for your account number or IBAN number, which if provided incorrectly can lead to failed transfers, funds being returned and long verification processes.
What to do if your money transfer is delayed
Is your money transfer delayed? Consider taking one of the following actions:
- Contact the provider for an update
Reach out to your money transfer provider to ask if any further action is needed on your end, or if they can identify the stage your transfer is at. It could be due to a processing delay or compliance check, or it might just be awaiting confirmation from the recipient. Either way, it’s a good idea to have your transaction or confirmation number ready to speed things up.
- Double check your transfer details
Incorrect account numbers, recipient names of a lack of required documentation can cause major hold-ups. Double check on your email receipt that you’ve got the recipient’s bank account details correct, as well as any SWIFT/BIC or IBAN codes. If they are incorrect, reach out to the money transfer provider to let them know.
- Choose a provider with faster delivery times
If your transfer fails or is impractically delayed, it may be time to consider finding a new money transfer provider. When comparing providers, look for information about how quickly they complete transfers along your particular corridor and if they offer any specific features, such as same day or instant delivery or real-time transaction tracking. You should also look at other factors, such as how well reviewed the providers are and ensure they are authorised by local financial authorities.
How to prevent future money transfer delays
- Save details and complete checks with your chosen provider
If you’re planning to send large amounts of money to the same destination regularly, it may be possible through some platforms to complete identification/anti-money laundering checks ahead of time, as well as adding your chosen payment method. This can help speed up transfers in the future.
- Consider when you are choosing to send transfers
Occasionally, money transfers might end up going through an unexpected delay. However, it’s a good idea to find out whether sending at different times – e.g. avoiding weekends or bank holidays in your send/receive country – will have an impact. You can often speak to your money transfer provider or bank to find this out.
- Understand how sending to different regions might vary
Differences in banking infrastructure, the kind of payment methods used and the providers available mean that it can take longer to send to some regions than others. For example, our sister website FXC Intelligence found that transfer speeds across Europe and Commonwealth states are consistently under 24 hours, but transfers to the US can vary a lot, with providers advertising speeds of 0-3 business days. (If you’re interested, take a look at the full report here).
Reduce money transfer delays and save money with FXcompared
At FXcompared, we understand how painful it is waiting for a money transfer to clear, for both the sender and the recipient. Our money transfer provider comparison tool will allow you to compare trustworthy, speedy and efficient money transfer specialists to get your money where it needs to be fast.
Compare money transfer providers in seconds to save time and reduce costs today.
