Difference between revisions of "SWIFT"

From Bisq Wiki
Jump to navigation Jump to search
 
(4 intermediate revisions by one other user not shown)
Line 1: Line 1:
'''SWIFT International Wire Transfer''' is a payment method to due to be added shortly after v1.7.3.  
+
'''SWIFT''' (international wire transfer) is a network that allows financial institutions worldwide to send and receive payments internationally in multiple currencies.
  
SWIFT is a network that allows financial institutions worldwide to send and receive payments internationally. This article discusses SWIFT transfers between Bisq users.
+
Sender and receiver typically incur fees and payment times can also be slow (up to 7 days), but payments are secure and almost completely irreversible.  
  
SWIFT is the industry standard for international payments and supports multiple currencies. Users with access to the SWIFT network through their bank or financial institutions can send and receive payments from any other Bisq user worldwide that also has access to the SWFIT network.
+
See [[Payment_methods#Fiat_payment_methods|this table]] for up-to-date trade limits and [[Account_limits#Account_signing|signing requirements]].
  
SWIFT transfers do usually incur bank fees for both the sender and receiver, payment times can also be slow (up to 7 days), but payments are secure and almost completely irreversible.
+
== Background ==
  
* Maximum trade duration: 7 days
+
Almost all banks have access to the SWIFT network. Some money transfer services also give users access to the SWIFT Network.  
* Signing required: No
 
* Regions accepted: All countries
 
* Currencies accepted: All currencies
 
* Bisq buy/sell Limits: 0.5 BTC
 
  
== Setting up a SWIFT Account ==
+
In order to set up a SWIFT payment account in Bisq, you will need:
 
+
* BIC/SWIFT code
Almost all banks will have access to the SWIFT network, and some payment account providers will also give their users access to the SWIFT Network. Before trading on Bisq using SWIFT ensure your bank or payment provider gives you access to the SWIFT network to both send and receive payments.
+
* IBAN code
 
 
Accounts with access to the SWIFT network will be provided with both the following:
 
  
* BIC/SWIFT code
+
Also ensure that you are aware of:
* IBAN code
+
* bank fees for sending and receiving SWIFT payments
 +
* which currencies you can accept
 +
* what the exchange rate would be in case conversion is necessary
  
== Setting up a SWIFT Account in Bisq ==
+
'''Policies vary by bank, and sometimes conversion fees are charged unexpectedly, so make sure you are aware of your bank's policies beforehand.'''
  
Go to <code>Account</code> >  <code>National Currency Accounts</code> in Bisq and select <code>Add New Account</code> and select SWIFT International Wire Transfer.
+
== Setting up the payment account ==
  
Complete the required fields. With SWIFT you have the potential for 3 banks (Owner (your account), Recipient (your banks account) and Intermediary (an linked account your bank uses to receive/send payments)).
+
When [[Creating_a_payment_account#Creating_a_national_currency_account|creating a new payment account]] for SWIFT, keep the following in mind:
 +
* Traders using SWIFT on Bisq could be anywhere in the world, so please fill all fields completely and accurately
 +
* If you are not comfortable sharing your own address, provide the address of your bank
  
Traders using SWIFT on Bisq could be from anywhere so, therefore, it is necessary to provide all the information fields. This will allow for smooth traders. If traders are not comfortable sharing their own address details it is recommended they provide the address of their bank instead.
+
{{Admonition_Note|'''By default, Bisq sets up your SWIFT account to make and take offers from any country and any currency.''' This means SWIFT accounts on Bisq are able to trade on ALL fiat currency markets. The currency for a particular trade will always be specified by the maker in their offer.}}
  
[[File:SWIFT 1.png|frameless|none]]
+
Note: if you transact in a currency that is not native to your bank account (as either maker OR taker), your bank may make you pay currency exchange fees. '''It is your responsibility to cover these fees.''' Please make 100% sure you're aware of what to expect before making or taking an offer.
  
If you have any special information you would like to share please do so in the 'special information field'
+
== Notes on buying BTC ==
  
Please note: As a default Bisq sets up your SWIFT account to make and take offers from any country and any country. This means SWIFT accounts on Bisq are able to trade on ALL fiat currency markets. The currency used will always be specified by the maker of the offer depending on the currency market they list their offer on. Eg
+
You can buy BTC with SWIFT on Bisq in 2 waysː
  
* User (maker) wants to Sell BTC for USD on BTC/USD market
+
# Make an offer to buy BTC on a currency market of your choosing
* User (maker) wants to Buy BTC for EUR on BTC/EUR market
+
# Take an offer to buy BTC on the currency market specified in the offer
  
The taker of the offer will always have to sent/receive fiat in the currency of the maker of the offer.
+
=== Send payment in correct currency ===
  
* User (taker) wants to Sell BTC for USD by taking an offer on the BTC/USD market
+
'''The bitcoin buyer must send payment in the currency of the market on which the offer was made.''' For example, if you make an offer to buy BTC using SWIFT on the BTC/USD market you should send USD (or ensure your bank converts your local currency into USD). Alternatively, if you take an offer to buy BTC using SWIFT on the BTC/EUR market you must send EUR.
* User (taker) wants to Buy BTC for EUR by taking an offer the BTC/EUR market
 
  
As either the maker or taker if you transact in a currency that is not native to your bank account there may be fees associated with the currency exchange that is necessary to complete the transfer. The onus is on all users to ensure that they are transacting in a currency that their bank supports and that they understand any fees that may be associated with currency exchange.
+
Failure to send payment in the correct currency will result in a penalty for the BTC buyer of either (1) 5% of the trade amount or (2) the amount the receiver is missing in the specified currency as a result of the currency exchange (whichever is greater).
  
== Buying BTC with a SWIFT Account ==
+
=== Put an appropriate reason for payment ===
  
You can buy BTC with SWIFT on Bisq in one of 2 ways.  
+
In general, [[Trading_rules#Leave_the_.22reason_for_payment.22_field_empty|the reason for payment field should be left blank]].
  
# You can make an offer to buy BTC with SWIFT on a currency market of your choosing.
+
Some users have reported instances in which an intermediary bank converts a payment's currency to the their own currency before converting back to the destination bank's local currency, and taking fees for doing this.
# You can take an offer to buy BTC with SWIFT on any currency market you like.
 
  
The sender of the SWIFT payment in fiat should SEND the payment in the currency of the market on which the offer was made or take. For example if you make an offer to buy BTC using SWIFT on the BTC/USD market you should send USD. Alternatively if you take an offer to buy BTC using SWIFT on the BTC/EUR market you should send EUR.
+
If you don't want this to happen, consider making the SWIFT sender put "DO NOT CONVERT" in the comment field for the wire transfer (not the comment field of the Bisq payment account). This will only work if the recipient is able to handle multi-currency incoming SWIFT payments.
  
Sending fiat payment in a currency which is different from the currency of the market which the offer was on will result in a penalty the the BTC buyer of the greater of 5% of trade amount, or the difference between the two currencies exchange rate of the account owners bank. For this reason it is important to ensure as a buyer using SWIFT you are able to send payment in the currency you make/take offers in.
+
=== Use the correct fee option ===
  
As is the case for all payment methods please do leave any reference / payment description blank. If one is required please use your 'Account Owner Name'.
+
SWIFT transfers for Bisq trades should use the SHA (SHAred) fee option. [[#Understanding_SWIFT_fees|More on this below]].
  
{{Admonition_Warn|When sending payment some users have reported the intermediary bank may exchange the currency back into a 'local currency' for this reason when making payment you might want to consider instructing your bank not to convert the currency from the currency you send payment in.}}
+
== Notes on selling BTC ==
  
== Selling BTC with a SWIFT Account ==
+
You can sell BTC with SWIFT on Bisq in 2 waysː
  
You can sell BTC with SWIFT on Bisq in one of 2 ways.
+
# Make an offer to sell BTC on a currency market of your choosing
 +
# Take an offer to sell BTC on the currency market specified in the offer
  
# You can make an offer to sell BTC for payment via SWIFT on a currency market of your choosing.
+
The BTC seller should receive the funds in the currency specified in the offer. For example, if you ''make'' an offer to sell BTC using SWIFT on the BTC/USD market, you will receive USD. Alternatively if you ''take'' an offer to sell BTC using SWIFT on the BTC/EUR market, you will receive EUR.
# You can take an offer to sell BTC for payment via SWIFT on any currency market you like.
 
  
The BTC Seller should receive the funds in the currency of market the offer was accepted on. For example if you make an offer to sell BTC using SWIFT on the BTC/USD market you should receive USD. Alternatively if you take an offer to sell BTC using SWIFT on the BTC/EUR market you should receive EUR.
+
Since SWIFT senders must use the SHA (SHAred) fee option for Bisq trades, sellers may incur fees on their end ([[#Understanding_SWIFT_fees|see more below]]). Make sure you are aware of these fees before selling BTC using SWIFT.
  
== Understanding SWIFT fees when trading on Bisq ==
+
== Understanding SWIFT fees ==
  
 
When sending a SWIFT transfer the sender has three fee options to choose from:
 
When sending a SWIFT transfer the sender has three fee options to choose from:
  
* BEN (BENeficiary) – The Payee (recipient of the payment) will incur all of the payment transaction fees. Typically, the recipient will receive the payment minus the transfer charges. The Payer (sender of the payment) will not pay any payment fees.
+
* BEN (BENeficiary) – payee (recipient of the payment) incurs all payment transaction fees. Typically, the recipient receives the payment minus the transaction fees. The payer (sender of the payment) does not pay any transaction fees.
* OUR – The Payer (sender of the payment) will bear all of the payment transaction fees. Normally you will be billed separately for the payment transfer. The Payee (recipient of the payment) will not pay any payment fees. The beneficiary will receive the full amount of the payment.
+
* OUR – payer (sender of the payment) incurs all payment transaction fees. Normally you are billed separately for the payment transfer. The payee (recipient of the payment) does not pay any transaction fees. The beneficiary receives the full payment amount.
* SHA (SHAred) – The Payer (sender of the payment) will pay all fees charged by the sending bank. You will be billed separately for the payment transfer. The Payee (recipient of the payment) will pay all fees charged by the receiving bank. The recipient will receive the payment minus any correspondent /intermediary fees
+
* SHA (SHAred) – payer (sender of the payment) pays all fees charged by the sending bank, which are billed separately. The payee (recipient of the payment) pays all fees charged by their receiving bank. The recipient receives the payment minus any applicable fees.
  
Bisq '''requires''' users sending a SWIFT transfer to use the '''SHA (SHAred)''' fee option. if a BTC Buyer sends a payment using the BEN (BENeficiary) fee option they will likely incur a penalty to compensate the BTC Seller.
+
'''Bisq requires buyers to use the SHA (SHAred) fee option for SWIFT transfers.''' If a BTC buyer sends a payment using the BEN (BENeficiary) fee option, they will likely incur a penalty to compensate the BTC seller.
  
All users should, therefore, make themselves aware of what their bank will charged based on the SHA (SHAred) fee option. Normally it will be $5-10 USD equivalent. Different banks charge different fees and some banks will change no fees at all, therefore, it is a good idea to consider what bank/s you would like to use to trade on Bisq using SWIFT.
+
Please make sure you are aware of your bank's fee schedule for the SHA (SHAred) fee option. Normally it will be $5-25 USD equivalent, but every bank is different.

Latest revision as of 18:15, 8 September 2021

SWIFT (international wire transfer) is a network that allows financial institutions worldwide to send and receive payments internationally in multiple currencies.

Sender and receiver typically incur fees and payment times can also be slow (up to 7 days), but payments are secure and almost completely irreversible.

See this table for up-to-date trade limits and signing requirements.

Background

Almost all banks have access to the SWIFT network. Some money transfer services also give users access to the SWIFT Network.

In order to set up a SWIFT payment account in Bisq, you will need:

  • BIC/SWIFT code
  • IBAN code

Also ensure that you are aware of:

  • bank fees for sending and receiving SWIFT payments
  • which currencies you can accept
  • what the exchange rate would be in case conversion is necessary

Policies vary by bank, and sometimes conversion fees are charged unexpectedly, so make sure you are aware of your bank's policies beforehand.

Setting up the payment account

When creating a new payment account for SWIFT, keep the following in mind:

  • Traders using SWIFT on Bisq could be anywhere in the world, so please fill all fields completely and accurately
  • If you are not comfortable sharing your own address, provide the address of your bank
Note
By default, Bisq sets up your SWIFT account to make and take offers from any country and any currency. This means SWIFT accounts on Bisq are able to trade on ALL fiat currency markets. The currency for a particular trade will always be specified by the maker in their offer.

Note: if you transact in a currency that is not native to your bank account (as either maker OR taker), your bank may make you pay currency exchange fees. It is your responsibility to cover these fees. Please make 100% sure you're aware of what to expect before making or taking an offer.

Notes on buying BTC

You can buy BTC with SWIFT on Bisq in 2 waysː

  1. Make an offer to buy BTC on a currency market of your choosing
  2. Take an offer to buy BTC on the currency market specified in the offer

Send payment in correct currency

The bitcoin buyer must send payment in the currency of the market on which the offer was made. For example, if you make an offer to buy BTC using SWIFT on the BTC/USD market you should send USD (or ensure your bank converts your local currency into USD). Alternatively, if you take an offer to buy BTC using SWIFT on the BTC/EUR market you must send EUR.

Failure to send payment in the correct currency will result in a penalty for the BTC buyer of either (1) 5% of the trade amount or (2) the amount the receiver is missing in the specified currency as a result of the currency exchange (whichever is greater).

Put an appropriate reason for payment

In general, the reason for payment field should be left blank.

Some users have reported instances in which an intermediary bank converts a payment's currency to the their own currency before converting back to the destination bank's local currency, and taking fees for doing this.

If you don't want this to happen, consider making the SWIFT sender put "DO NOT CONVERT" in the comment field for the wire transfer (not the comment field of the Bisq payment account). This will only work if the recipient is able to handle multi-currency incoming SWIFT payments.

Use the correct fee option

SWIFT transfers for Bisq trades should use the SHA (SHAred) fee option. More on this below.

Notes on selling BTC

You can sell BTC with SWIFT on Bisq in 2 waysː

  1. Make an offer to sell BTC on a currency market of your choosing
  2. Take an offer to sell BTC on the currency market specified in the offer

The BTC seller should receive the funds in the currency specified in the offer. For example, if you make an offer to sell BTC using SWIFT on the BTC/USD market, you will receive USD. Alternatively if you take an offer to sell BTC using SWIFT on the BTC/EUR market, you will receive EUR.

Since SWIFT senders must use the SHA (SHAred) fee option for Bisq trades, sellers may incur fees on their end (see more below). Make sure you are aware of these fees before selling BTC using SWIFT.

Understanding SWIFT fees

When sending a SWIFT transfer the sender has three fee options to choose from:

  • BEN (BENeficiary) – payee (recipient of the payment) incurs all payment transaction fees. Typically, the recipient receives the payment minus the transaction fees. The payer (sender of the payment) does not pay any transaction fees.
  • OUR – payer (sender of the payment) incurs all payment transaction fees. Normally you are billed separately for the payment transfer. The payee (recipient of the payment) does not pay any transaction fees. The beneficiary receives the full payment amount.
  • SHA (SHAred) – payer (sender of the payment) pays all fees charged by the sending bank, which are billed separately. The payee (recipient of the payment) pays all fees charged by their receiving bank. The recipient receives the payment minus any applicable fees.

Bisq requires buyers to use the SHA (SHAred) fee option for SWIFT transfers. If a BTC buyer sends a payment using the BEN (BENeficiary) fee option, they will likely incur a penalty to compensate the BTC seller.

Please make sure you are aware of your bank's fee schedule for the SHA (SHAred) fee option. Normally it will be $5-25 USD equivalent, but every bank is different.