Introduction to Bank Transfer

Bank Transfer is the most favorite online payment methods in Indonesia; it is perceived as the most convenient and traditional way of doing payment. Around half of the online shopping uses Bank Transfer for payment over Cash on Delivery, Card Payment, or other payment methods.


Doing Bank Transfer is simple and straightforward - sender only need 2 types of information: account number destination and how much money should be transferred. In addition, account name might be needed to ensure that the sender transfers to a valid account.

Methods on doing Bank Transfer

Before going to the methods, let’s talk about the category. There are two categories of Bank Transfer based on the sender’s and receiver’s Bank account:

  1. Intrabank transfer. Intrabank transfer is in-house transfer; means transfer is done within the same Bank network. To do an intrabank transfer, sender should have the same Bank network with the receiver. For example, a sender uses his/her BNI account to transfer to receiver’s BNI account.
  2. Interbank transfer. Interbank transfer is a money transfer to a different Bank; sender uses a different Bank network  to transfer to the receiver. For example, a sender uses Mandiri account to transfer to receiver’s BRI account. In this case, there will be more parties involved; the sender’s Bank, Principal Network, and receiver’s Bank. Principal Network in Indonesia is Link, Alto, ATM Bersama, and Prima. Sender will be charged an additional bank transfer fees for interbank transfer.

In the meantime, there are several methods to do Bank Transfer as described below:

  1. Online transfer (real-time). Online transfer is a real time Bank Transfer. Intrabank transfer is always an online transfer. It can also be done for interbank transfer within the same principal network (ATM Bersama, Prima, Alto, Link, etc.); through ATMs, Internet Banking, or Mobile Banking. However, there are limitation on the maximum amount per transfer, ranging from Rp15.000.000 - Rp25.000.000. Online transfer fees for interbank varies from Rp5.000 to Rp7.500. Please note that there is an exception in BCA where bank transfer using Klik BCA or m-BCA is NOT an online transfer but is a SKN/Kliring/LLG; so there might be a delay on the side of receiver.
  2. SKN (Sistem Kliring Nasional) /LLG. Different than Online Transfer that can only transfers within the same bank network or principal network, SKN can works from and to any Banks in Indonesia. However, Banks are doing SKN transfer in batches, so there will be delay on the reception. The funds usually received in same day to 1 day (weekday) or 3 days (weekend) after the transfer date. SKN/LLG cost varies from Rp3.500 to Rp 5.000.
  3. RTGS (Real-Time Gross Settlement). RTGS is a Bank Transfer with a large sum of money (minimum amount is Rp100.000.000). It is usually used for interbank transfer via teller, and it costs about Rp25.000 to Rp30.000 per transfer. All transfer above Rp500.000.000 can only be done using RTGS method, and RTGS method has a maximum of 3 hours delay since transfer time.

Bank Transfer perception: customer vs. merchant

When we are talking about success rate, there are a different perception between customer and merchant. Once customer decided to go to ATM to pay, the success rate is about 75%; mostly transferred successfully/paid. The other 25% is not successfully transferred; some reasons we analyzed is because of the wrong destination account number (account not found) or network error or any other reason (e.g insufficient funds in the account).

However, the success rate is 2 times lower in the eye of merchant - nearly 50% of the Bank Transfer transaction drops off. While there is a drop-off in customers who decided to pay (covered above), there is also additional 25% drop-off in customers who decided to not to pay (he/she does not go to the ATM center or teller/use internet banking or mobile banking to do the transfer).