Priya Mehra posted in

What Is The Difference Between Online Domestic & International Money Transfer


Domestic money transfer and international money transfer online comprises transferring money from one bank to another through the internet. Making domestic money transfers is pretty straightforward, given the location of both the sender and the receiver is in the same country. However, international money transfer online is a slightly complex procedure as it involves currency exchange between two countries.

A domestic money transfer online, also known as wire transfer, is processed online by the concerned service provider. It can be initiated and received within a few hours. The transaction processing time is anywhere between two to four working days for online international money transfer. 

The delay is because a domestic online transfer has to only go through domestic ACH (Automated Clearing House). In contrast, an international transfer has to go through both domestic and foreign ACH. 

Domestic money transfer online

There are different payment methods for transferring money from one bank to another, depending on the amount of cash you need to transfer. There is no limit to making domestic money transfer through NEFT (National Electronic Fund Transfer). 

In Real-time Time Gross Settlement (RTGS), there is an amount limit set by the bank. Immediate Payment Service (IMPS) is the faster way to transfer money domestically, although a low cap on the transaction is set to avoid fraudulent activities. Online transactions are made possible through the IFSC code of the banks.

Several NBFCs and service providers also provide Domestic Money Transfer facilities via IMPS and other modes. There are no KYC related delays, and the service is mainly targeted at the rural Indian population with little or no access to formal banking channels.

Advantages of Domestic Money Transfer 

  • The process of domestic fund transfer is safe, secure, and ensures quick transfer. 
  • Sending money from one service provider to another is flexible and convenient. You can transfer money from the comfort of your home. 
  • The surcharge amount to make domestic money transfer through net banking is pretty low. 
  • It requires minimum paperwork to send money domestically.

International money transfer

International money transfer online is used to send money to friends and family members for education, medical treatment, immigration, employment, etc. All transactions are conducted through a globally accepted legal network known as Society for Worldwide Interbank Financial Telecommunication (SWIFT). 

Almost all banks and leading NBFCs are members of SWIFT, which makes money transfer safe and secure. 

Factors involved in international money transfer online

  • Exchange rates 

As you send money in foreign currencies, it is important to find the best rates available in the market, especially if the transfer amount is large. A small difference in the exchange rate could cost you big money in the final figure. 

  • Fees

International money transfer online comes with hidden fees such as exchange fee, amendment fee, cancellation fees, and transfer fees. You must be wary of these charges to avoid losing money. 

  • Transfer time and limit 

The transfer limit to make international money transfer online is set by the Reserve Bank of India, and the transaction completion can take from two to four banking days. 

Benefits of international Money Transfer Online

  • International transactions through SWIFT are safe and reliable.
  • You can avail of competitive exchange rates during the time of conversion. 


Online transfer services are the best way to transfer money from one bank to another, whether domestically or internationally SME financing Companies. However, a domestic money transfer is swift, and funds are transferred faster because both the sender and the receiver are located within the same country's boundaries. Whereas in international wire transfer services, transactions can take up to four days to complete.