Sending money across borders is a big part of staying connected, and understanding the terms involved makes the process even smoother.
That’s why we’ve created this money transfer dictionary. It’s a simple guide to keywords you’ll see when using money transfer services, from Remitly to your local bank. Whether you’re supporting loved ones or managing expenses, these definitions will help you move money confidently.
Understanding the basics: key money transfer terms
Here are some essential money transfer terms you should know:
Business/working days
What it means: The days when banks and financial institutions are open—usually Monday to Friday, excluding weekends and public holidays.
Why it matters: Many bank transfers, including most international ones, are only processed on business days, which can delay arrival.
Example: “I sent the transfer on Friday, but he didn’t get it until Tuesday because it said it would take two to three business days.”
Calendar days
What it means: All days of the month, including weekends and public holidays.
Why it matters: Some transfer services estimate delivery in calendar days, which can be quicker than business-day processing.
Example: “The app says the money will arrive in two calendar days, so if I send it on Saturday, it should arrive by Monday.”
Confirmation/receipt number
What it means: A unique code your bank or transfer service gives you after you send money.
Why it matters: You can use it to track a transfer or confirm it was sent.
Example: “The app says my receipt number is AUS12345. I’ll share it with you so you can track it.”
You may also see the term “payment reference,” which means the same thing.
Currency code
What it means: A standard three-letter code used worldwide to identify each currency.
Why it matters: You need to specify which currency you want to use when making international transfers.
Examples: AUD (Australian dollar), USD (US dollar), PHP (Philippine peso)
Delivery method
What it means: How a recipient receives their money transfer.
Why it matters: Most providers offer various options, including direct bank deposit, cash pickup, mobile wallet, or home delivery.
Example: “I chose cash pickup as the delivery method so my mum can collect the money near her house.”
Digital wallet
What it means: An app or online account that stores your money electronically so you can send, receive, or spend without a physical card.
Why it matters: Some transfer services let you send money directly to someone’s digital wallet, which can be faster than a bank transfer.
Example: “I sent the money to his digital wallet, and he was able to buy what he needed online straight away.”
Exchange rate
What it means: The rate that tells you how much one currency is worth in another.
Why it matters: It determines how much money the recipient actually gets. Rates change often, and your provider should show the one it uses.
Example: “At today’s exchange rate of $1 AUD = $0.66 USD, my $500 AUD becomes about $332 USD.”
Markup
What it means: The extra cost a provider adds to the real exchange rate.
Why it matters: Hidden markups can make transfers more expensive, even when fees look low.
Example: “The bank said it has no fee, but its exchange rate is 1 AUD = 0.63 USD. Google shows that 1 AUD = 0.66 USD, so those three cents are the markup.”
Mid-market rate
What it means: The “real” exchange rate you see on a site like Google—halfway between the current buying and selling prices of two currencies—which includes no fees.
Why it matters: It’s the fairest rate available. Banks and transfer services add a margin to make a profit.
Example: At the time of writing, the mid-market rate between AUD and PHP is $1 AUD = 38.50 PHP.
Mobile wallet
What it means: A digital account connected to a phone or wearable device like a smartwatch. Used to receive, store, and spend money.
Popular examples: Varies, but includes Google Pay, Apple Pay, and Samsung Pay.
Example: “I sent the money directly to her mobile wallet, so she got it on her phone.”
Processing time
What it means: How long it takes for money to arrive with someone after you send it.
Typical times: Can range anywhere from seconds for a fast domestic transfer to one to five business days for a bank-based international transfer.
Example: “According to the processing time, it’ll take two to three business days to reach his bank in India.”
Transfer fee
What it means: The additional amount a provider charges you to send money, either as a flat fee or a percentage.
Why it matters: Transfer fees affect the total cost of sending money, so comparing them helps you avoid paying more than you need.
Example: “The app charged me a $2.90 AUD transfer fee to send money to Vietnam.”
Transfer limits
What it means: The maximum amount of money you can send at once or in a day.
Why it matters: Limits may be lower for new accounts or large/international transfers.
Example: “My daily transfer limit is $5,000 AUD, so I’ll need to send the payment in two parts.”
Receiving fee
What it means: A fee the recipient’s bank or service might charge them, usually taken off the amount sent.
Why it matters: The recipient may get slightly less than you sent.
Example: “Her bank charged her a $4 AUD receiving fee, so she got a bit less than expected.”
Recipient/beneficiary
What it means: The person receiving the money.
Why it matters: Their details must be correct to avoid delays.
Example: “Make sure the recipient name matches the name on their bank account.”
Reference/description
What it means: A short, usually optional, message to explain why you’re sending the money.
Why it matters: Helps both sender and recipient identify the payment.
Example: “I wrote ‘Rent for December’ as the reference so my housemate knows what it’s for.”
How your money travels: codes and networks
From account numbers to international networks, understanding how your money moves gives you more control over your transfers.
Account number
What it means: A unique number identifying a bank account.
Why it matters: You need the correct account number to ensure money goes to the right person.
Example: “I checked my banking app, and my account number is 87654321.
BSB (Bank-State-Branch)
What it means: A six-digit number that identifies an account’s bank and branch in Australia.
Why it matters: Required alongside an account number for domestic transfers.
Example: “The BSB is 123-456. I added it with the account number to make the transfer.”
IBAN (International Bank Account Number)
What it means: A long, standardised bank account format used in many countries, particularly in Europe, to make international transfers safer.
Why it matters: You’ll usually need the recipient’s IBAN when sending money to countries that use this format—Australia does not.
Example: “To send money to my cousin in Spain, I entered her IBAN, which started with ES91.”
NPP (New Payments Platform)
What it means: Australia’s system for fast and secure payments between domestic banks.
Why it matters: Transfers via NPP usually arrive within seconds, even on weekends.
Example: “The payment went through instantly because my bank used the NPP.”
PayID
What it means: A way to send and receive money by using something easy to remember (like a phone number or email address) instead of a BSB and account number.
Why it matters: It reduces mistakes and speeds up transfers
Example: “He gave me his PayID, which is just his mobile number, so I didn’t need his bank details.”
PayTo
What it means: A digital way to make payments in Australia using the NPP. It lets you approve a “payment agreement” so businesses can take money from your account automatically.
Why it matters: PayTo lets you see, pause, or cancel payment agreements in your banking app.
Example: “I set up my gym membership with PayTo, so the payment comes out automatically each month.”
SWIFT/BIC Code
What it means: A code that identifies a specific bank for international transfers.
Why it matters: Ensures international transfers reach the right institution.
Example: “Her bank is based in New Zealand and the SWIFT code is ANZBAU3M.”
Types of money transfers
Different transfers suit different needs, so knowing your options helps you choose the fastest, cheapest, or most convenient method for each situation.
Bank/wire transfer
What it means: Sending money from one bank account to another through a financial institution.
Why it matters: One of the most common and secure ways to move money locally or internationally.
Example: “I paid my rent using a bank transfer from my ANZ account.”
Cash pickup
What it means: The recipient collects the money in cash from a partner location, like a bank.
Why it matters: Useful when the recipient doesn’t have a bank account or needs money quickly.
Example: “My dad collected the money at a cash pickup location not long after I sent it.”
Domestic transfer
What it means: Sending money to someone within the same country.
Why it matters: Usually fast and inexpensive.
Example: “I sent her the grocery money as a domestic transfer to her CommBank account.”
Fast transfer
What it means: A near-instant transfer, often using PayID.
Why it matters: Money arrives in seconds, even on weekends and public holidays.
Example: “He got the payment immediately because I used a fast transfer with PayID.”
International transfer
What it means: Sending money from Australia to a bank account or service in another country.
Why it matters: Different currencies, fees, and networks mean costs and delivery times vary.
Example: “I made an international transfer to send money to my cousin in the Philippines.”
Online money transfer service
What it means: A digital service or app, like Remitly, that lets you send money without using your bank directly.
Why it matters: Often cheaper, faster, and more flexible than banks.
Example: “I used an online money transfer service because it offered home delivery.”
Remittance
What it means: Money sent to someone overseas, often to support family or pay expenses.
Why it matters: Many people rely on remittances, so cost and speed matter.
Example: “Her monthly remittance helps pay for her parents’ household expenses.”
Telegraphic transfer (TT)
What it means: A type of electronic bank-to-bank transfer that uses the SWIFT network.
Why it matters: Banks often label their international payments as “TT,” so understanding the term helps you understand fees and processing times.
Example: “My bank charged a fee for a telegraphic transfer when I sent money to the UK.”
Why transparency matters
When sending money, hidden fees and exchange rate markups can make money transfers more expensive than they first seem. Choosing a service that clearly shows the mid-market rate and all applicable fees helps you understand exactly how much the recipient will get.
By using a transparent and trusted provider, like Remitly, you can avoid surprises, ensure your money gets where it needs to go, and enjoy peace of mind knowing your transfer is secure.
FAQs
What is the cheapest way to send money internationally?
The cheapest option depends on the currencies and countries involved, but online money transfer services often beat banks on fees and exchange rates. Compare providers to find the lowest cost.
How long does an international money transfer take?
Processing times vary from minutes to days. Fast online transfers or services using real-time networks are usually quickest, while traditional bank transfers can take one to five business days.
What details do I need to send money overseas?
You’ll usually need the recipient’s full name, bank account number, and bank details such as IBAN and/or SWIFT/BIC code. Some services let you send money to mobile wallets that may only require a phone number or email.
Is it safe to send money online?
Yes, as long as you use a trusted, regulated provider. Look for encryption, secure login, and clear policies. Avoid sharing sensitive info over email.