Traditional transfers are also known as wire transfers. They involve sending and receiving money electronically from one bank to another via a network, for example SWIFT, ACH and Fedwire. You can also use a nonbank method to transfer money, such as Western Union or TransferWise.
It’s possible to receive payment on the same day if you and the payee are based in the same country. However, international transfers can take between 2-10 days to complete, depending on the circumstances.
The primary cause for delayed payments in traditional transfers is the batch payment processing system. Banks have designated times for processing payments, and they do it in batches.
This means it doesn’t matter when the sender makes a transaction. Their bank will process it at their designated time, which may not be in your (the receiver) favour.
Factors that influence the time it takes for a write transfer to clear:
The required paperwork changes depending on the bank used when carrying out a wire transfer. However, the standard information that the sender must submit to the bank is the bank name, (IBAN) account number, and routing number.
Instant transfer
While traditional transfers take a day or more, instant transfers happen immediately, usually within seconds. The difference in transfer timelines is due to batch and real-time payment processing. Traditional transfers rely on batch payment processing, meaning the banks process and complete transactions according to their schedule. However, real-time payment processing is instant.