International wire transfer (SWIFT)
In one sentenceA money transfer to a bank outside the Kingdom through the SWIFT network. It needs the beneficiary bank's code and the account number, and may pass through more than one intermediary bank.
Simply put
An international transfer is used to pay suppliers abroad. The beneficiary's bank is identified by its SWIFT code (BIC), and an intermediary bank may deduct fees, so a smaller amount arrives.
State in the transfer who bears the fees, record the payment at the exchange rate on the execution day, and record the fees as a separate bank expense.
Worked example
An importer pays a supplier abroad 10,000 dollars at an exchange rate of 3.75 SAR per dollar, with assumed fees of 75 SAR for illustration.
Amount in SAR10,000 × 3.75 = 37,500 SAR
Assumed transfer fees75 SAR
Deducted from the account37,500 + 75 = 37,575 SAR
Total that left the account37,575 SAR
Don't confuse it with
Letter of creditA transfer is a direct payment with no guarantee for the buyer, while a letter of credit ties payment to presenting the shipping documents.