A guide to bank transfers in Singapore for businesses

Bank transfers are an essential part of doing business in Singapore, yet entrepreneurs may not fully understand its impact on operations or profit margins. Factors like transfer times, fees, and exchange rates matter when you make frequent or high-volume payments. 

Choosing the right bank transfer method can help you send money securely and quickly while minimising fees. Keep reading to learn more about bank-to-bank transfers in Singapore and how to decide which one to use for paying suppliers, employees, or vendors.  

What is a bank transfer? 

A bank transfer is the electronic transfer of money from one bank account to another. It’s a broad term that covers domestic transfers, cross-border payments, and interbank transfers.  

Bank transfers are the lifeblood of businesses because they provide a secure and efficient way to pay suppliers, employees, or partners. However, payments don’t always have to go through a bank. Fintech firms like Airwallex are licensed to offer money transfer services, too.

Types of bank transfers in Singapore: a breakdown

Singapore businesses have several types of bank transfers options to choose from. Most domestic transfers can be done through FAST, PayNow, or GIRO. For high-value or urgent domestic transactions, RTGS/MEPS is commonly used. Meanwhile, international payments are sent through the SWIFT network, wire transfers, and telegraphic transfers.

We’ll explore these options below to help you understand which one is right for your business.

Domestic vs international bank transfers: How do they work? 

Domestic and international bank transfers differ in terms of where the money is sent, and what systems are used to move it. Domestic transfers stay within the same country, while international transfers cross borders and often involve higher fees and more processing steps.

Businesses in Singapore have several domestic transfer networks to choose from. These transfer methods cater to different needs for speed and transaction size, ensuring flexibility for businesses.

1. FAST (Fast And Secure Transfers) launched in 2014 and enables near-instant SGD transfers between participating banks. You can transfer up to SGD 200,000 per transaction, depending on the financial institution’s limits. FAST requires you to have your recipient’s bank account details, and is limited to the 21 financial institutions who participate in the system.¹

2. PayNow allows individuals and businesses to transfer SGD funds instantly without needing full bank account details. Funds can be transferred using the recipient’s mobile number, UEN, NRIC/FIN, or by scanning a PayNow QR code. PayNow uses FAST as its underlying infrastructure.

3. GIRO (General Interbank Recurring Order) is a direct debit payment method that lets businesses make one-time or recurring payments directly from their bank account.² Unlike the other domestic payment methods, GIRO isn’t an instant payment; It takes up to 3 business days for a GIRO payment to arrive.

4. Real-Time Gross Settlement (RTGS) is a system that processes and settles high-value or urgent fund transfers between banks. The MAS Electronic Payment System (MEPS) is Singapore’s RTGS system. It is the quickest, most secure way to transfer funds between local banks that don’t participate in the FAST network.³ MEPS is typically used by financial institutions or large corporations.

Meanwhile, international bank transfers between Singapore and other countries take place on the SWIFT network. This messaging network facilitates transfers between 11,000 banks and financial institutions in 200+ countries.⁴ SWIFT doesn’t actually transfer or hold money - it works as a secure messaging system that banks use to communicate during international transfers. It ensures payment instructions are sent accurately between financial institutions to process the transaction.

Another way to send money internationally is through local payment rails like ACH in the USA and SEPA in the European Union. These are systems that allow money to move between banks and financial institutions within a country. Using these payment rails mean faster transfers and lower fees, as transfers are treated like a local transfer. Fintech firms like Airwallex give businesses the option to use local payment rails instead of SWIFT.

Bank transfers for different business needs 

When choosing transfer methods, businesses should pick options that fit their specific needs. 

• Recurring payments. For recurring domestic transactions like payroll or utility bills, GIRO allows automatic, hassle-free payments.  Large payments. For large overseas payments, many businesses rely on SWIFT and wire transfers, which can take up to 10 days to reach.⁵ Businesses can also use fintech firms like Airwallex to send money through local payment rails.

• Instant payments. When speed is critical, methods like FAST or PayNow can settle domestic payments efficiently, often in seconds. FAST lets you send up to SGD 200,000, subject to the transfer limits set by each financial institution.⁶

Benefits of bank transfers for businesses

Bank transfers offer several benefits to Singaporean businesses, making them a smart choice for accepting or sending payments.

• Reduced chargeback risk. Bank transfers can’t be reversed once a customer completes them, unlike credit card payments, which come with the risk of chargebacks and high fees. If a customer is unhappy with their purchase, they need to request a refund directly from you, which lets you address the issue and‌ possibly avoid a refund. 

• Builds trust with local customers. In Singapore, where PayNow, FAST and GIRO are widely used and trusted, offering this payment option aligns with customer expectations and boosts trust. 

• Lower transaction costs. Local bank transfers often have lower processing fees compared to card payments, helping businesses save money on their payment gateway’s transaction fees. 

• Security. FAST, GIRO, PayNow and MEPS are regulated by the Monetary Authority of Singapore (MAS), which sets strict safety and reliability standards. MAS ensures these payment systems follow strict standards to protect against fraud and misuse. With these safety nets in place, businesses and consumers can confidently send and receive electronic payments.

By using bank transfers, businesses in Singapore can lower costs, increase customer satisfaction, and create smoother payment experiences tailored to local preferences.

Why is your bank transfer delayed? 

There are several reasons why a bank transfer is delayed. Common issues include incorrect account details, such as entering the wrong account number or missing important information. Transfers made after banking hours, on weekends, or during public holidays may also take longer to process. 

Some banks may hold a transfer temporarily if they need to verify the transaction for security reasons, especially for unusually large amounts.

SWIFT transfers can face more delays because of the extra steps involved. Payments often pass through intermediary banks, which can take additional time. Currency conversion and differences in time zones or banking hours between countries may also slow down the process.

Furthermore, international transfers are subject to compliance checks for anti-money laundering and other regulatory requirements, which can add to the delay. Double-checking details and allowing extra time for international transactions can help reduce these delays.

Having local customer support and a clear dashboard can help businesses stay on top of their transfer status. For example, Airwallex's dashboard makes this simple by providing real-time updates on every transfer. Should any issues or delays arise, Airwallex’s Singapore-based customer support team can quickly resolve these, without the hassle of waiting for support from overseas teams.

Manage global bank transfers with the Airwallex Business Account

Timely and cost-effective bank transfers are critical to seamless business operations. Singapore has made several advancements in creating domestic payment networks like FAST and GIRO. However, many businesses still rely on the SWIFT network for cross-border payments. 

SWIFT has long been a trusted network for international payments, but it does have some drawbacks. As we’ve covered above, transactions can get delayed due to time zone differences and the number of intermediaries involved in the process. Transfer fees can also add up and eat into your margins.   

Fortunately for Singapore businesses, fintech firms like Airwallex offer a cost-effective alternative to SWIFT transfers. We offer an end-to-end payment platform that enables international transfers and multi-currency payouts. Through our local transfer network, you pay zero or close to zero fees for international transfers to 120+ countries. 90% of transfers arrive on the same day.  

Traditional bank accounts like the DBS Business Account tend to apply a small charge to domestic payment methods.⁷ When you have hundreds of local employees or bills to pay, even a 50-cent fee can become a significant cost. Airwallex helps you save on domestic transfers too, with free unlimited transfers using MEPS+ and FAST⁸. 

Airwallex has more to offer than cost savings. The Airwallex Business Account is an all-in-one platform that offers the following benefits:

• Instantly open a local currency account in more than 60 countries with local bank details (so you don’t have to open bank accounts in markets where you operate)

• Accept payments from customers in 180+ countries and 160+ local payment methods, such as Alipay in China with our multi-currency payment gateway solution

• Minimise foreign exchange risk with interbank exchange rates and risk management solutions

• Enjoy 1% unlimited cashback on all local and international spend with the Airwallex Borderless Card, on all categories like SAAS subscriptions or travel expenses (Terms & conditions apply)

• Instantly view, monitor and approve employee expenses through our built-in Expense Management platform

• Automate your local and international bill payments with Bill Pay. Upload, approve, pay, and reconcile your invoices all within your Airwallex account

• Automate your monthly reconciliation through integrations with accounting software like Xero or NetSuite

We help over 150,000 businesses around the world simplify their financial operations. Open a free Airwallex Business Account account today, or talk to our team to find out how Airwallex can help you with your domestic and global payments.

Frequently asked questions

1. Is telegraphic transfer the same as wire transfer?

Yes, a telegraphic transfer and a wire transfer are essentially the same thing. Both refer to the direct electronic transfer of funds between bank accounts, via a secure network managed by global financial institutions. The term “telegraphic transfer” is commonly used for international transactions, while “wire transfers” are used for both domestic and international transfers.

2. Can a wrong bank transfer be reversed?

Yes, in some cases, a bank can amend or reverse a wrong transfer for a fee.  Each financial institution has different rules for handling incorrect transfers. The sooner you report the mistake, the better your chances of cancelling or reversing the transaction.  

3. What is a Bank Identification Code (BIC)?

A Bank Identification Code (BIC) is a unique ID that identifies a specific bank during international transactions. Think of it as an address for banks to communicate securely and efficiently. BIC codes are often used interchangeably with SWIFT codes, but there’s a subtle difference.  BICs are mainly used for European banks, while SWIFT codes are used globally. Their codes are also structured differently.⁹ To avoid delays, it’s always important to double-check your recipient’s BIC code before making a transfer.

4. Is it safe to pay by bank transfer?

Paying by bank transfer is generally safe, because financial institutions in Singapore use secure systems to process transactions and are regulated by the Monetary Authority of Singapore. Airwallex is licensed as a Major Payment Institution and is regulated by the Monetary Authority of Singapore (MAS). We keep customer funds in trusted global financial institutions and protect them according to the local regulations in each country where Airwallex operates. However, you should only transfer money to individuals or businesses you know, because it can be difficult to reverse payments. 

5. Are there bank transfer limits?

Yes, bank transfers have limits, which can vary depending on the currency and the country you’re sending to. Business accounts usually have higher limits than personal accounts, though the limits vary from fintech firm to fintech firm. For example, Wise has a US$1,000,000 limit for ACH transfers in the USA¹⁰, but Airwallex’s transfer limit is US$15,000,000¹¹. It’s a good idea to check with your bank to know the specific limits for your transfers.

Sources

1. https://abs.org.sg/docs/library/fast-faq.pdf

2. https://www.abs.org.sg/consumer-banking/giro

3. https://www.mas.gov.sg/regulation/payments/meps

4. https://www.swift.com/join-swift

5. https://thepaypers.com/expert-opinion/singapore-2024-analysis-of-payments-and-ecommerce-trends--1270601

6. https://abs.org.sg/docs/library/fast-faq.pdf

7. https://www.dbs.com.sg/documents/276102/282855/pricing-guide.pdf

8. https://help.airwallex.com/hc/en-gb/articles/900001759623-Which-currencies-can-I-get-a-Global-Account-in-and-what-payments-can-I-receive

9. https://www.swift.com/standards/data-standards/bic-business-identifier-code

10. https://wise.com/help/articles/2932150/guide-to-usd-transfers

11. https://www.airwallex.com/docs/payouts__payout-network__united-states