SWIFT CODE

 The money from one's personal account is transferred to the other person's account via the banks commercial accounts. The banks take a fee. If there are two currencies involved in the the transfer, one of the banks will do the currency exchange as an intermediary bank. SWIFT (The Society for Worldwide Inter-bank Financial Telecommunication) is a global messaging system that runs on a network of financial institutions. It informs the users when payments have been sent and arrived. For that, a customer will be charged an additional fee. SWIFT connects thousand of banks worldwide to communicate information on financial transactions in a secure and standardized way. The SWIFT network doesn't actually transfer the money it communicates transaction orders between institutions using SWIFT codes. SWIFT assigns every financial organization a unique code which that has 8 or 11 characters. This code is called the SWIFT code, ISO-9362 or the BIC code. The SWIFT is created in 1973 and headquartered in Belgium, SWIFT links 11,000 banks and institutions in more than 200 countries. It sends more than 40 million messages a day. Before SWIFT was introduced, banks used TELEX for international transactions. TELEX was a slow payment orders system that relied on describing every transaction with sentences instead of codes, which was nightmare for both banks ans users.