What bank details are needed to receive money?

We may receive money in our bank accounts for various reasons – services rendered, goods sold, as a gift or any other reason you can think of. In fact, bank transfers are so common that thousands, if not more, take place on a daily basis. 

But if you’re new to receiving bank transfers, you might wonder what account details to provide to the sender so that the transfer is ultimately successful and the intended funds reach you.

Keep reading to find the answers you need.

Receiving money within a country

When it comes to wire transfers through online banking in the UK, the bank details you need to share with a payee to receive money are:

• Full name of the person or business;
• 6-digit sort code;
• 8-digit account number.

A confirmation of the date on which you want the payment sent may also be required. If you don’t want the money to leave your bank account immediately, most financial institutions that offer online bank transfers allow you to schedule the transfer for a future payment date.

Depending on your bank, wire transfers can take up to a few business days to reach the payee’s account.

Receiving money abroad

The information required to receive money from abroad is usually a bit more detailed than the information required for domestic transfers.

Bank details that you might be asked to provide the sender for international money transfers may include the following, depending on the sender’s country of origin. 

Name and address of the recipient (you)

You’ll need to provide the name associated with your bank account, also known as the beneficiary’s name. This can be either an individual’s name or a business one. Additionally, you have to share the address registered with your account.

Bank name and address

Next, the payer will probably have to state the name of your bank or payment service provider, along with its full address. The sort code usually serves this purpose as it helps identify the specific bank branch where an account is held. In some cases, they may also need to provide the bank’s contact information, such as a phone number or email address, to facilitate communication between the banks involved in the transfer.

Bank BIC and SWIFT code

The BIC (Bank Identifier Code) helps the payment system identify the bank and the country where the international bank transfer is supposed to arrive. The SWIFT (Society for World Interbank Financial Telecommunication) code often serves the same purpose as the BIC. Providing either code will help facilitate international bank payments.

Your account number

You will need to provide either your account number or IBAN (International Bank Account Number). The IBAN is an internationally accepted numbering system that helps identify bank accounts globally. Financial institutions use IBANs as a more secure way to avoid human transcription errors and ensure payments arrive at the correct destination.

Your account type

When arranging an international money transfer, you may also need to specify the type of account you hold. Common account types include checking, savings and business accounts. Indicating the correct account type will help in the verification process and prevent delays.

The amount

Even if you think you are clear on the amount being transferred, it’s always a good idea to double-check to avoid any confusion or discrepancies. It’s also important to agree in advance on the currency. This will ensure that you receive the correct amount after conversion rates and fees are applied.

The payment date 

Specify the exact date you want to receive the payment, especially if you want it made on a specific future payment date. Clear communication of the payment date is crucial for time-sensitive transactions, such as those related to business operations or contractual obligations.

Additionally, consider time zone differences, as international transactions may be influenced by varying bank working hours and holidays across countries.

These are the more common details required to receive a bank transfer, but some financial institutions and countries could require further information.

For example, in India, the required account details could include the Indian Financial System Code (IFSC), while in the US, the recipient’s routing number may be needed. Meanwhile, you may need to provide the sort code for payments within the UK.

Where to find all the details you need for a bank transfer

Now that we’ve clarified what bank details you need to transfer money from one account to another, you might wonder where you can check these details. 

The account name, type, IBAN and BIC/SWIFT code can usually be found on your bank statement or RIB (bank identity document). If you don’t have access to such a document, you can find the information by logging in to your account on the online banking platform or mobile app.

There are also IBAN calculators or BIC or SWIFT code finders, which are tools that use the information you already have in order to verify your identity and find your other bank details.

Alternatively, you can always contact your payment provider to obtain the necessary information.

Types of payment methods for receiving money

There are numerous ways to receive money directly into your bank account. Each payment method offers a unique set of advantages and disadvantages, catering to diverse preferences and needs. 

As an enterprise, you may opt for a combination of several methods to accommodate the preferences of your clients and business partners. 

To familiarise you with all the options, here are some of the most common methods for receiving payments.

Bank transfers

Bank transfers are among the most widely accepted payment methods. In the UK, there are several types, and the choice between them will depend on the urgency of the payment and the countries involved. 

Here are the main types:

• Faster Payments: This is a nearly instantaneous transfer service that usually allows you to receive funds within minutes, up to a maximum of two hours.
• BACS (Bankers’ Automated Clearing Services): Typically used for payroll, direct debits and large-scale payments, BACS transfers can take up to three business days.
• CHAPS (Clearing House Automated Payment System): This is a same-day payment service, ensuring transfers are processed on the same day if submitted by the bank’s cut-off time.
• SEPA (Single Euro Payments Area): Used to facilitate international bank transfers within the Eurozone, SEPA payments are executed in euros only. They usually take one business day. 

Credit and debit cards

Receiving payments via credit or debit cards can occur both online or in person and usually involves using a card machine or electronic payment gateway. The funds are swiftly deposited into your business bank account, providing quick access to the money. This method not only offers convenience but also ensures security and cost-efficiency, especially when compared to cash handling.

Digital wallets

Digital wallets, also known as e-wallets, work similarly to credit and debit cards, however, instead of using a physical card, the payer utilises their mobile device. This method operates by tokenising payment information and securely storing it on an NFC-enabled mobile device. 

For in-person payments via card machines, transactions are conducted contactless. For digital payments, transactions are executed swiftly and conveniently through a dedicated button, eliminating the need to enter card details. Notable digital wallets include Apple Pay, Google Pay and Samsung Pay.

Digit payment platforms

Digital payment platforms provided by payment service providers serve as comprehensive solutions for facilitating money transfers. Designed with small businesses in mind, these platforms typically offer more affordable rates and go beyond basic transaction processing, offering an array of additional features. 

In addition to facilitating transactions, digital platforms commonly provide services such as card machine leases, merchant accounts, online payment solutions, and financial management and invoicing tools. 

Recurring payments

Recurring payments are a type of bank transfer where payments are scheduled to be automatically deducted from an account on a regular basis. They can be categorised based on who initiates the payments – the payer or the payee.

They include:

• Standing order: These payments are scheduled by the payer through their financial institution. The payer sets the payment amount and the intervals at which money is to be transferred to another account. Standing orders are often used for subscription services, rent or other ongoing contractual payments. 
• Direct debit: In this case, the payee automatically deducts funds from the customer’s account on a specific schedule, but only after the customer has given their authorisation. This method is commonly used for utility bills, loan repayments and subscription services. 

Checks

Paper checks used to be a common method for large financial transactions. However, they often require visits to a bank branch for processing and take time to clear. Considering the availability of same-day transaction options, checks have become inconvenient and less preferred nowadays. 

eChecks, or electronic checks, are digital versions of traditional paper checks. Through this method, funds are electronically transferred from one account to another. This reduces processing time, eliminates the need for physical branch visits, and minimises the risk of errors, providing an efficient alternative to paper checks. 

Payment Links and QR Codes

Payment links and QR codes are modern tools for receiving payments digitally. They simplify the payment process by allowing customers to complete transactions with just a few clicks.

Here’s what you need to know about them:

• Payment Links: These are easy to create and can be sent via email, SMS or text message. Some can be even integrated into websites, videos and social media platforms in the form of pay buttons. When a customer opens it, they are taken to a secure checkout page to complete the payment.
• QR Codes: This method works similarly to payment links. Customers scan the code using a smartphone or other mobile device to initiate the payment. They are often used in physical locations or on printed materials.

How long will the payment take to process?

Since bank transfers typically take place between different banking institutions or organisations, there is a standard period of 2-3 days from the date of payment to the payment’s receipt into your account.

The funds usually undergo rigorous checks on both sides, and the exchange rate is also calculated when different currencies are used.

Also, keep in mind that these exchange rates may bear further costs, although they are often minimal.

Security measures for bank transfers

Digital payments are considered a more secure method for transferring money compared to handling cash. However, they can still be vulnerable to fraud.

To ensure the security of financial transactions and prevent fraudulent activity, the EU Revised Directive on Payment Services introduced special legislation in 2019. This legislation requires payment service providers to employ Strong Customer Authentication (SCA when processing electronic transactions.

This requirement essentially means using multi-factor authentication when making bank transfers, setting up standing orders or paying online.

When you initiate a transaction, your financial institution will send you a verification code as a push notification to your mobile device or via email. That’s why it is important to keep your contact details up to date. You will need to enter the code you received to complete the transaction.

Additionally, financial institutions will ask for a reference (sometimes called a ‘payment reason’) when you make a payment. This means they will inquire about the purpose of the transaction, such as whether it is for a friend or to pay a bill, invoice, or wage. 

Some payment platforms also display warnings about scammers. They will ask you to confirm that you know and trust the payee, that the entered bank account details are correct, and that you wish to continue with the payment.

Other tips to consider when receiving money

When someone is sending you money, either to fulfil an obligation or for some other reason, you should look out for the following tips to ensure you receive the funds safely: 

• Stay within your limits: Whether you’re sending or receiving funds domestically or internationally, always make sure your account is not overdrawn and that you have sufficient funds in your account to cover the transfer.
• Always double-check all the details: This is a crucial factor when sending your bank information to the recipient. One wrong digit could mean that the intended funds don’t reach you. This is where the next step comes in.
• Request the sender to repeat the details to you: By double- and triple-checking with the sender that the account details are correct, you can be sure you’ll receive the desired payment in your account safely!

The perks of the myPOS business account

Above, we mentioned that the expected time period for a bank transfer can take a couple of days. However, a myPOS business account can significantly speed up this process. 

When you accept payments through the myPOS platform – whether via a myPOS card machine or an online payment tool – your funds are instantly deposited into your myPOS online business account, giving you immediate access.

In addition, once a payment is received in your account, you can easily make a SEPA or SWIFT transfer to any other bank account, ensuring the funds arrive on the same day.

Receive payments with confidence

Bank transfers can take some time to reach your account, depending on the sender’s institution. 

You also need to be aware of the correct details to provide to the sender to ensure that the intended funds reach you. 

In this blog post, we covered the information you need to provide to receive a bank transfer, the time limits for transfers in the normal course of business, things to look out for when receiving such transfers, and the main benefits of having a myPOS merchant account.

With this information, we hope you’ll feel more confident when receiving payments in the future!

Disclaimer: Please be aware that the contents of this article and the myPOS Blog, in general, should not be interpreted as legal, monetary, tax, or any other kind of professional advice. You should always seek to consult with a professional before taking action, since the particulars of your situation may materially differ from other cases.