International payment delays can disrupt cash flow, supplier relationships and business plans. If you have arranged an overseas payment but your recipient says the money has not arrived, what could explain the delay?
An international transfer can involve several banks, different time zones and local processing requirements. Even when a payment reaches the recipient’s bank quickly, that bank may need to complete further checks before adding the funds to the recipient’s account.
Understanding how the process works can help you plan ahead, reduce avoidable delays and know what to do when a payment takes longer than expected.
Booking your currency exchange and sending your payment are different steps
When you book a foreign exchange transaction, you agree to exchange currencies on specified terms. This booking does not immediately place the money in your recipient’s account. It helps if you have an understanding about the factors which affect exchange rates in advance, before you need to make the payment.
Your payment provider must also complete the steps necessary to release the payment, including receiving your funding and payment instructions and completing the relevant checks.
Before booking, confirm when you need to supply the funds and when your provider expects to send the payment. If your supplier needs access to the money by a particular date, tell your account manager early and allow enough time to complete each step.
How cut-off times and holidays contribute to international payment delays
Banks and payment systems follow processing schedules. If your payment misses a relevant cut-off time, it may need to wait until the next processing window.
Weekends and public holidays can also affect delivery. A working day in New Zealand or Australia does not necessarily mean every bank involved in your transfer will operate that day. Holidays in the destination country or a country associated with the payment currency can affect processing.
Some payment systems operate around the clock, while others follow local business hours. Your online banking platform may accept an instruction even when the payment system that handles the transfer has closed.
For time-sensitive payments, ask your account manager about the relevant cut-off times before booking.
Incomplete recipient details can interrupt a transfer
Your payment instructions need to meet the requirements of the destination country and receiving bank.
Depending on the transfer, you may need to provide:
- The recipient’s full account name and address.
- An account number or International Bank Account Number (IBAN).
- A SWIFT/BIC code or local bank code.
- The payment purpose and an appropriate reference.
Missing information, typing errors or incorrect formatting can trigger manual checks. A bank may request clarification, reject the payment or return the funds.
Check each required field carefully before submitting your instructions. Providing complete information at the outset helps reduce unnecessary follow-up.
Banks may request additional supporting information
Banks involved in an international transfer may need more information about the sender, recipient or payment before proceeding.
For example, a bank may request an invoice or an explanation of the transaction’s purpose. These checks can extend processing time, particularly when the bank needs information from another party.
Keep relevant documents accessible and respond promptly to requests.
When paying a new beneficiary through Tasman FX, sending us the relevant invoice when you book the transaction can help us address questions early. If you expect an unusual or complex payment, discuss it with your account manager beforehand so we can explain what information we may need. It is helpful to understand the hidden costs that may exist in global supply chains as well.
The receiving bank completes the final step
Some international payments travel through an intermediary bank before reaching the recipient’s bank.
Once the payment arrives, the receiving bank may still need to complete account checks or other local processing requirements before making the funds available.
This means that “sent”, “received by the bank” and “credited to the recipient’s account” describe different stages. A payment confirmation does not necessarily confirm that the recipient can already use the money.
Swift explains how these processing stages affect international payment delivery times.
What should you do if an international payment has not arrived?
Contact your payment provider with the transaction reference, payment date, amount, currency and recipient’s name.
Your provider can check the available status information and explain whether the payment needs a further enquiry.
Ask your recipient to contact their bank as well. Their bank may have received the payment but need additional information before crediting their account.
Avoid sending a replacement payment until you understand the original payment’s position. Otherwise, you could pay the same invoice twice.
How to reduce avoidable international payment delays
A little preparation can help keep your overseas payments on track:
- Share the recipient’s deadline early. Explain when they need access to the money, rather than simply when you intend to send it.
- Have your funding ready. Confirm your funding deadline and allow time for your funds to reach your provider.
- Supply complete payment details. Check the requirements for the destination and receiving bank.
- Allow for processing schedules. Consider cut-off times, time zones, weekends and relevant public holidays.
- Provide supporting documents promptly. Send relevant invoices when booking and respond quickly to any further requests.
These steps cannot prevent every delay, but they can reduce avoidable interruptions and give you more time to resolve questions before a payment deadline.
Plan your next international payment with Tasman FX
At Tasman FX, our dedicated account managers help business and personal clients understand their international payment options.
If you have an upcoming supplier invoice or another time-sensitive transfer, speak with us early. We can discuss your currency requirements, explain what information we need and help you plan your payment timetable.
Contact the Tasman FX team to discuss your next overseas payment.
