International transfers come with a lot of jargon. Here is a plain-English glossary of the terms you are most likely to meet, grouped so you can find them fast. The one worth learning first is the exchange-rate margin — it is usually the largest hidden cost.
Pricing terms
- Mid-market (interbank) rate — the "real" exchange rate, the midpoint between global buy and sell prices. The fair benchmark you see on Google; see the mid-market rate explained.
- Exchange-rate margin (markup) — the gap between the mid-market rate and the rate a provider gives you. A real, often hidden, cost.
- Transfer fee — the visible, upfront charge for a transfer (flat or a percentage).
- FX spread — the difference between buy and sell prices for a currency pair; related to how margins are built.
- Amount received — the units of destination currency that actually land after the margin and fees. The number worth comparing on.
Bank & network terms
- SWIFT — the global messaging network banks use to instruct international wires.
- BIC — a bank's SWIFT code; its unique identifier for routing.
- IBAN — International Bank Account Number, a standardized account format used across many countries.
- Sort code / routing (ABA) number — domestic bank identifiers in the UK and US respectively.
- ACH — the US bank network for lower-cost (slower) electronic transfers; common for funding a transfer.
- SEPA — the euro-area system for low-cost transfers in euros.
- Faster Payments — the UK's near-instant domestic payment system.
- CLABE — Mexico's 18-digit standardized bank account number (used with SPEI).
- UPI / IMPS — India's instant payment rails for bank/account payouts.
- Correspondent / intermediary bank — a middle bank in a SWIFT wire that may deduct its own fee.
Payout methods
- Bank deposit — money paid directly into the recipient's account; usually the cheapest.
- Cash pickup — recipient collects cash at an agent location with ID and a reference number.
- Mobile wallet — money credited to a mobile-money or e-wallet account (e.g., common across Asia and Africa).
Process & compliance terms
- Remittance — money sent by someone abroad to family or others in their home country.
- Send vs receive currency — the currency you pay in versus the currency your recipient gets.
- Settlement — the completion of a transfer, when funds are finalized to the recipient.
- KYC / AML — "Know Your Customer" / "Anti-Money-Laundering" checks that providers run to verify identity and prevent fraud; they can add time on first use or large amounts.
- Exchange-rate lock — a feature some providers offer to fix a rate for a window or a scheduled transfer.
Putting it together
You do not need to memorise all of these to send money — but the pricing terms are worth knowing, because comparing on the amount received (after the margin and fees) is how you consistently get more to the other side. Ready? Compare live rates or read our guide to choosing a service.
Frequently asked questions
What is the single most important term to understand?
The exchange-rate margin — the gap between the real mid-market rate and the rate a provider offers you. It is often a bigger cost than the visible fee, so understanding it is the key to comparing transfers fairly.
What is the difference between SWIFT, IBAN, and BIC?
SWIFT is the global messaging network banks use for international wires; a BIC is the bank's SWIFT code (its identifier); an IBAN is the standardized international format for an individual account number. You often need the IBAN and BIC together for a wire.
Do I need to know all of these to send money?
No — most transfers just need the recipient's account or pickup details. But knowing the pricing terms (mid-market rate, margin, fee) helps you compare and avoid overpaying.
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