Bank transfer: What is it and how does it work?

We often need to use bank transfers, one of the main payment methods for services and products. But do you know exactly how these transfers work and what their rules are?

A bank transfer occurs when you make a payment by sending money from one account to another, and can be a transaction between accounts at the same bank or at different banks.

Therefore, there are some rules and procedures. Read on to learn more about the types of transfers and how they work.

See what you'll find in this article:

• What are the most common types of bank transfers?
• How long does it take for a bank transfer to arrive?
• What about PIX? How does this bank transfer work?
• How to make a bank transfer?
• How Bank Transfer Scheduling Works
• Frequently asked questions

What are the most common types of bank transfers?

The two main ways to make a bank transfer are via DOC and via TED.

Each method has its own rules and operates differently. Therefore, it's important to understand them when making your transfers smoothly.

Check out how they work:

Bank transfer via DOC

DOC stands for "Credit Order Document," a type of electronic bank transfer between accounts at different financial institutions in Brazil. Through DOC, you can send money from one bank account to another quickly and securely.

To make a transfer via DOC, you'll need the following information from the recipient: full name, CPF or CNPJ, bank name, branch number, and account number. You'll also need to provide the amount to be transferred.

The maximum amount that can be transferred via DOC is R$ 4,999.99 per transaction.

In general, there's a fee to pay for a DOC transfer, which can vary from bank to bank. Some financial institutions may even offer bank transfers via DOC free of charge.

DOC transfers are usually processed on the same day, as long as the transaction is made within the bank's opening hours. However, the funds will only be available in the recipient's account on the next business day after the transaction.

In summary:

• Transfer between accounts at two banks.
• There are no minimum values and the maximum is R$ 4,999.99.
• The amount is processed within one business day if the DOC is submitted before 9:59 PM. If the DOC is submitted after 10 PM, it takes two business days to process.

Bank transfer via TED

TED stands for "Available Electronic Transfer," another form of electronic transfer between bank accounts in Brazil. Like DOC, TED transfers are made between accounts at different financial institutions.

The main difference between TED and DOC is the processing time and the maximum amount that can be transferred. While DOC has a maximum limit of R$$ 4,999.99 per transaction and can take up to one business day to process, TED allows for faster transfers, usually processed within a few hours, and has no maximum amount limit.

In summary:

• It is a type of transfer between two accounts.
• There are no minimum amounts and amounts above R$ 5,000 are accepted.
• It processes in a few hours, as long as it is done before 5pm.

Bank transfer – TEF

Another type of bank transfer that you can find and make, and which is very similar to TED, is TEF – Electronic Financial Transfer.

This type of transfer occurs when you send money to another account at the same financial institution, making it a much simpler operation to carry out.

Then:

• It is the transfer between accounts in the same bank.
• The money arrives on the same day, usually at the same time.
• You don't need to have the CPF/CNPJ of the person receiving the payment.

How long does it take for a bank transfer to arrive?

The time it takes for a bank transfer to be processed will depend on a number of situations, the main ones being the type of transfer and the time it was made.

Check out how it works:

• TED: the transfer takes place on the same day, usually within 3 or 4 hours, as long as it is made before 5 pm.
• DOC: The transfer takes place on one business day, provided the DOC is made before 10 p.m. If the transfer is made after this time, it takes two business days.
• TEF: the transfer is processed on the same day, usually arriving instantly in the other account or a few hours later, as long as it is made before 5 pm.

What about PIX? How does this bank transfer work?

PIX is an instant payment system created by the Central Bank of Brazil in 2020. It allows electronic transfers between bank accounts at different financial institutions in real time, at any time of the day or night, including weekends and holidays.

To make a PIX, you must only have the recipient's PIX key, which can be their CPF, telephone number, email address, or a random key, depending on what the person registers.

Currently, the Central Bank estimates that more than 70% of banking transactions are being carried out through PIX, including bill payments and bank transfers.

Among the advantages, the amount is immediately deposited into the other account and there are no fees charged on this bank transfer.

There is no minimum amount for PIX. The maximum amount is set only for the nighttime period, between 8 PM and 6 AM, when you can make transfers of up to R$1,000.00.

How to make a bank transfer?

Making a bank transfer is very simple. Here's a step-by-step guide:

• Access your bank account (you can do this through the app, the website or at self-service terminals).
• On the main screen, choose “Transfers”.
• Choose the type of transfer you want: DOC, TED, or PIX. Your bank may have a "Transfer to an account at the same bank" option. If not, and you'll use this option, you can choose TED or PIX.
• Fill in the transfer details: account, amount, and details of the account you will receive.
• Confirm the operation.

That's it. You've made your bank transfer and can be sure the money will arrive in the designated account.

How Bank Transfer Scheduling Works

If you want to make a bank transfer at a later time, or schedule it for someone to receive it, you can schedule the transfer directly from your account.

When making the transfer, the system will ask you: "When to transfer" or "Transfer date." Here, you should schedule the transfer so that the funds are sent at the right time.

You can schedule DOC, TED and PIX.

Frequently asked questions

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