The Role of SWIFT Codes in Payment Delays for African Freelancers

 Freelancing internationally gives African professionals exciting opportunities to earn in strong currencies like USD, EUR, and GBP. However, receiving payments can sometimes take longer than expected. One factor that plays a crucial role in this process is the SWIFT code.

Understanding how SWIFT codes work, and why mistakes or delays related to them can affect your payments, is essential for managing cash flow, planning projects, and maintaining professional relationships with clients. In this article, we’ll explore what SWIFT codes are, how they influence international payments, and how freelancers can navigate these challenges.

---

What is a SWIFT Code?

A SWIFT code (also called a BIC code) is a unique identifier assigned to a bank. It allows financial institutions worldwide to send money to each other securely and accurately. Essentially, it ensures that your funds go to the correct bank and branch.

A SWIFT code usually contains 8 to 11 characters, which provide information about the bank, country, and branch. For example:

• Bank Identifier – identifies the bank

• Country Code – identifies the country

• Location Code – identifies the city

• Branch Code – identifies a specific branch (optional)

When a client sends payment internationally, they include your SWIFT code along with your account number. This tells their bank exactly where to send the funds.

---

How SWIFT Codes Affect Payment Processing

SWIFT codes are crucial for accurate payments, but they can also influence delays. Here’s how:

1. Ensuring Correct Routing

International payments often pass through multiple intermediary banks before reaching your account. The SWIFT code ensures each bank in the chain knows exactly where to forward the money.

• A correct SWIFT code helps payments move smoothly.

• An incorrect or outdated code can cause the payment to be held or returned.

Even a small typo in the code can result in delays of several days or weeks, as banks investigate or correct the issue.

---

2. Verification and Compliance Checks

SWIFT codes also play a role in compliance with international banking regulations:

• Banks use SWIFT codes to verify the recipient’s bank and country.

• This process is part of anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.

• If a SWIFT code is flagged as unusual or high-risk, additional checks may be required.

While these measures protect against fraud, they can also slow down payments.

---

3. Intermediary Bank Routing

Many African banks do not have direct relationships with banks abroad, meaning payments must go through correspondent banks.

• Each intermediary bank relies on the SWIFT code to route the payment correctly.

• If the SWIFT code is missing, incorrect, or not recognized, the payment can be delayed while banks verify details.

• Multiple intermediaries increase the chance of delays, as each layer adds processing time.

---

4. Bank Holidays and Cut-Off Times

Even with the correct SWIFT code, payments can still be delayed due to banking schedules:

• SWIFT networks operate on business days, not weekends or public holidays

• Payments submitted after a cut-off time may only be processed the next business day

• If multiple intermediary banks are involved, holidays in any of their countries can extend the delay

---

5. Currency Conversion

SWIFT codes are tied to specific bank branches and accounts, which can also influence currency conversion timing:

• Some banks may only convert funds once they reach a specific branch or account type

• This adds an extra layer of processing, especially if the transfer involves USD, EUR, or GBP

• Delays in conversion can result in the payment reaching your account later than expected

---

6. Manual Intervention

Sometimes banks need manual review:

• If the SWIFT code doesn’t match the bank details exactly

• If there is a mismatch between the account number and branch

• If the payment appears unusually large or inconsistent with your normal pattern

Manual checks are essential for security but can add days or even weeks to the process.

---

Common SWIFT-Related Mistakes That Cause Delays

1. Using an outdated SWIFT code: Some branches may close or merge; always confirm with your bank.

2. Typographical errors: A single wrong character can misroute or hold funds.

3. Not including the branch code when required: Some banks need the full 11-character SWIFT for international transfers.

4. Incorrect currency account: Sending USD to an account expecting EUR can cause processing issues.

5. Relying on partial information: Only providing the bank name without the SWIFT code increases risk of delay.

Avoiding these mistakes ensures your international payments arrive faster and reliably.

---

Strategies to Minimize SWIFT-Related Delays

1. Verify Your SWIFT Code With Your Bank

• Always double-check your SWIFT/BIC code before giving it to clients

• Confirm with your bank if you’re unsure about branch-specific codes

---

2. Provide Complete and Accurate Payment Details

• Include your account number, SWIFT code, branch, and full name as it appears on the account

• Ensure invoices contain all the necessary information

---

3. Use Multi-Currency Accounts or Digital Banks

• Receiving USD, EUR, or GBP in dedicated accounts reduces conversion delays

• Digital fintech platforms can sometimes bypass intermediary banks, speeding up payments

---

4. Communicate With Clients

• Guide clients on the correct payment method and details

• Encourage them to double-check the SWIFT code and other required information

• Clarify currency preferences to prevent unnecessary conversion steps

---

5. Track Payments Proactively

• Use transaction IDs to monitor international transfers

• Follow up with your bank if payments take longer than expected

• Maintain a clear record of all payment instructions given to clients

---

6. Plan for Delays in Cash Flow

• Freelancers should anticipate that payments may take several days or weeks

• Maintain a cash reserve to manage business expenses

• Consider invoicing early or splitting payments for large projects to reduce risk

---

Conclusion

SWIFT codes are essential for international payments, ensuring that funds reach the correct bank and branch. However, mistakes, compliance checks, intermediary banks, currency conversions, and banking schedules can cause delays of several days or weeks.

African freelancers can minimize delays by:

• Verifying SWIFT codes with their bank

• Providing accurate and complete payment details

• Using multi-currency or digital accounts

• Communicating clearly with clients

• Tracking payments and planning for delays

Understanding the role of SWIFT codes and how payments are routed empowers freelancers to manage expectations, reduce stress, and improve cash flow reliability.

---

If you want to master international payments, avoid delays, and take control of your freelance income, you can grab the best of Tabitha Gachanja’s books today.

Grab them here for $25