What details are needed for a bank transfer?

Many people rely on bank transfers to pay household bills, rent and mortgage payments, health premiums, and gym memberships. A bank transfer involves remitting funds from one bank account to another account.

Details needed for a bank transfer in Australia

To make a bank transfer in Australia, payees will generally have to provide the below details:

• Account name: The name of a person or business to send funds to.
• Bank State Branch (BSB) number: This is a six-digit number that details the individual bank branch where an account was first opened.
• Account number: This is an eight-digit number that can relate to different kinds of transactions or saving accounts. Credit card accounts may have 16 digits, and mortgage accounts can have nine digits.
• PayID details: This is an optional alternative to providing a bank account number and BSB. PayID allows people and businesses within Australia to make bank transfers to recipients by using identifying details, such as mobile numbers and email addresses. PayID participants must have opted in and linked their account number and BSB to their chosen PayID to transfer funds in this way.
• SWIFT/BIC code: Individuals only need these details when sending or receiving funds from an international account. Australia does not participate in the International Bank Account Number (IBAN) System, relying on SWIFT/BIC instead.
• Recipient's address: Country and address details are only required when making an international bank transfer.

How domestic and international bank transfers work

Here's how a typical Australian bank transfer happens:

1. A person logs on to a banking portal using their bank's website or mobile app.
2. Through their online banking dashboard, they choose the transfer or pay bill option.
3. They enter the Australian dollar amount, the account name, BSB number, and account number if sending within Australia.
4. At this stage, there may also be an option to add a reference number that will appear on both the payee and payer's bank account statements.
5. There is generally no requirement to include a reference like 'birthday gift' or 'last night's dinner', but some may find it useful for tracking expenses later on.
6. If sending overseas, the payer will also need to add the SWIFT/BIC code and the payee's business or residential address. At this stage, there may also be an option to convert Australian dollars into a foreign currency to pay the recipient overseas. There may be fees payable for such transfers.
7. Once the payment is submitted for a domestic bank transfer, funds will clear into the recipient's account.
8. Transfers between accounts at the same bank may happen quickly. Similarly, funds transferred to other banks within Australia may be quick if they participate in Australia's fast payments system, Osko.

Common mistakes to avoid during bank transfers

Checking details at every step of the process can help to ensure funds land in the right bank account. Common mistakes with bank transfers include:

• Entering an incorrect payment amount
• Omitting or misspelling the account name
• Getting the bank account number wrong
• Mismatching the BSB and account number
• Providing incorrect PayID details
• Getting the SWIFT/BIC code wrong

Ways to increase the security of bank transfers

Consider the following steps to help ensure bank transfers remain secure:

• Double-check emails, calls, texts, and letters that claim to be from a bank.
• Install and regularly update anti-virus software on desktop, laptop, or tablet computers.
• Carefully enter payee details and check every field before approving bank transfers.
• Avoid using online, mobile, or app banking while on public Wi-Fi.
• Create a strong online and mobile banking password.
• Turn on two-factor or multi-factor authentication.

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