There are two main methods: sending a wire transfer or purchasing a foreign draft.
What is the difference between a wire transfer and a draft?
International wire transfers are typically sent out over an international communications system known as SWIFT, and settlement is arranged between individual banks.
A foreign draft is like a cashiers check in local currency drawn on an account maintained by TD Banknorth.
While sending a wire internationally is different than sending one within the U.S., it's much faster than purchasing a foreign draft. However, if you are unable to obtain the banking information of your recipient required to arrange a wire transfer, then a foreign draft is your best choice.
What is SWIFT?
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is an industry-owned co-operative providing secure, standardized messaging services and interface software to over 8,000 financial institutions in 207 countries and territories. The SWIFT community includes banks, broker-dealers and investment managers. The broader SWIFT community also encompasses corporations as well as market infrastructures in payments, securities, treasury and trade.
What is the fastest method for sending money?
A wire transfer is more efficient than a foreign draft because funds are made available sooner. To complete a wire transfer, you must know the banking information of your recipient. It is also better to send your payment in the local currency, for example, Euros in France or Germany or Pounds Sterling for the United Kingdom.
Should I make the payment in local currency or U.S. Dollars?
While you may pay in U.S. Dollars, it is usually the case that the receiving bank will convert the payment to local currency when paying your recipient. Furthermore, the settlement systems within a country are designed to handle its own currency. When you send your payment in local currency you will also know the exchange rate. U.S. Dollars will work, but less efficiently.
What is an IBAN?
As Europe is moving to the Single Euro Payments Area (SEPA), the European Union (EU) – as well as Norway, Iceland, Liechtenstein and Switzerland – have made a series of regulatory changes designed to improve straight-through processing of payments and reduce costs.
A key element of this transition is the introduction of the International Bank Account Number, or IBAN – the new domestic account number standard for all retail and commercial banking accounts in the EU. IBANs are assigned by the European banks to their corporate customers and can be found on invoices and/or settlement instructions you receive from your counterparties.
The IBAN consists of up to 34 alphanumeric characters: two characters are used to identify the country in which the counterparty's account resides; two characters are used for check digit verification; and the rest identify the account holding bank and the counterparty's account number.
Why do I need to use the IBAN?
Your payments can still be made without an IBAN, but you should ask your European beneficiaries for it and supply it to us with the payment details. Your beneficiaries will be familiar with the request, and the whole process will go more smoothly.
If you do not supply the IBAN in your payment instructions, you are in effect, supplying an incorrect account number. Failure to provide the IBAN reduces the opportunity to process the payment straight-through (STP). This may subject you to additional repair charges, and could result in return of the payment.
While these STP requirements started out applying only to intra-EU Euro payments, they are now applied by many European banks to any payment which originates outside the EU regardless of currency.
Who do I contact to arrange a wire transfer in a foreign currency or get a foreign draft?
Your local TD Banknorth branch can assist you with arranging a wire transfer in a foreign currency or obtaining a foreign draft.
How do I receive money from overseas? What banking information should I share with the overseas remitter?
Whether in U.S. Dollars or in foreign currency, TD Banknorth can receive international wire transfers on your behalf. You should provide your remitter with proper routing information. Go to our forms page to choose the wire transfer form that best meets your needs.
How are overseas checks cleared?
TD Banknorth can clear overseas checks in a variety of foreign currencies and U.S. Dollars. Some checks are eligible for immediate provisional credit – until it is finally settled by the issuing bank – and some items must be sent out on "collection" for final payment, which can take some time before payment is settled.
When I travel overseas, how would I make payments for purchases?
Before you leave the country, if you are a TD Banknorth customer, you may order foreign currency from your local TD Banknorth branch. While traveling, you can also use your credit card or your TD Banknorth Visa® Debit Card to make purchases.
How can I get foreign currency for a trip I am taking abroad?
If you are a TD Banknorth customer, you may order foreign currency at any TD Banknorth branch and pick up your order in two business days. We also maintain a large inventory of foreign currency at our Rockefeller Plaza, New York City branch, so if you live in the vicinity you can pick it up immediately instead of ordering it ahead of time. View the list of currencies we offer.
Can I order foreign currency online?
At this time, we do not have online ordering capability for foreign currency. However, if you are a TD Banknorth customer, you may visit a local TD Banknorth branch or call Customer eCare to order it and you can pick it up at the branch.
Can I use my TD Banknorth Visa Debit Card at a bank overseas to obtain local currency?
Yes. You will need to use an ATM machine with a logo that matches the logo on the back of your card. Due to security risks, use of your ATM or Visa Debit Card may be restricted in certain countries.
