International payments may continue to face vexing delays even with the introduction of digital solutions. Speed is important whether you are a freelancer who is supposed to receive the funds abroad, or the company is making payments to their suppliers, or a person is sending money to relatives. In this blog, we will discuss seven of the most prevalent reasons behind international payment delays and also give practical advice on how to prevent them by 2025.
1. Incomplete or Incorrect Beneficiary Information
Among the common causes of payment delays is just keying in the incorrect information. This may be misspelled names, a wrong account number, or a wrong SWIFT/BIC code. Banks tend to hold such transactions until they can confirm or refund the money, and this may take days.
How to avoid it:
Always verify all the details of the recipient before sending, particularly the international banking code and schemes such as IBANs. The payment templates or previously checked information should be used, where feasible.
2. Time Zone and Banking Hours Differences
Not every bank is 24/7, more so across time zones. Payments that are triggered towards the close of the business day of the sender may not be captured until the next business day, and hence, there are time and weekend delays.
How to avoid it:
Program the transfer of time early in the local time of both the sender and recipient and rely on fintech services or blockchain applications that enable real-time or near-instant processing independent of time zone differences.
3. Intermediary Banks Slowing Down Transfers
In most cross-border payments, particularly those involving SWIFT, the payments are handled by one or a series of intermediary (correspondent) banks. Every stop raises the chances of delay, especially when one of the stops has a processing backlog or other technical problems.
How to avoid it:
Use platforms such as SWIFT gpi, Wise, or RippleNet, both of which reduce the number of intermediaries or enable tracking through the payment chain in real-time.
4. Compliance and Regulatory Checks
Laws about anti-money laundering (AML), sanctions screening, and KYC checks may cause delays, particularly for large payments or transfers to high-risk countries. The payments can be marked so that they can be reviewed manually, which slows down the process.
How to avoid it:
Both the sender and receiver should be KYC-verified with the platform through which the sender is sending. Select payment providers whose compliance is automated and do not route using constrained areas.
5. Currency Conversion Hold-Ups
In case you have to make a transaction that involves the conversion of currencies, there might be delays in making payment when the currency is fluctuating or because the payer requires time to find funds. Certain platforms also store the funds in a temporary position until the exchange is realized.
How to avoid it:
Use apps that provide real-time FX rates with immediate conversion (as with Wise), or use multi-currency wallets where you can store and remit in the local currency of the recipient.
6. Public Holidays and Weekends
Use apps that provide real-time FX rates with immediate conversion (as with Wise), or use multi-currency wallets where you can store and remit in the local currency of the recipient.
How to avoid it:
Check international banking calendars prior to making large or time-sensitive payments. Payments should be made on a weekly basis when feasible; this way, there is less chance of having two holidays that overlap.
7. Outdated Payment Methods
The use of obsolete payment rails (such as traditional bank wires that have not been upgraded to real-time) may lead to delays in nature. There are those banks that continue to batch and process payments manually at specified times.
How to avoid it:
Migrate to new fintech systems, blockchain payments, or banks that can handle instant SEPA transfers, Faster Payments, or UPI connections.
Conclusion
There is a cost associated with the international payment delay, not only in money but also in trust, time, and opportunity. The great news is that the majority of causes are preventable and can be predicted with the necessary instruments and knowledge. It is possible to make fast international payments, smoother and more reliable, by simply staying updated and selecting the appropriate platforms to execute them every time.
