Eight payment rails. One cheat sheet. Save this.
A "rail" is the system a payment actually travels on. Pick the right one and payments are fast, cheap and predictable. Pick the wrong one and you get delays, intermediary fees and a supplier asking where their money is.
Here's what each rail is, when to use it, and what to watch out for.
The cheat sheet
- SIC — Currency: CHF; Where: Switzerland; Use it when…: Paying or getting paid in francs within Switzerland
- Swiss QR — Currency: CHF, EUR; Where: Switzerland & Liechtenstein; Use it when…: Paying a QR-bill
- SEPA — Currency: EUR; Where: SEPA countries; Use it when…: Euro payments to the EU/EEA, UK and other SEPA countries
- SWIFT — Currency: Almost any; Where: Worldwide; Use it when…: Other currencies, or countries outside local schemes
- ACH — Currency: USD; Where: United States; Use it when…: Routine, lower-urgency USD payments
- Fedwire — Currency: USD; Where: United States; Use it when…: Larger or time-critical USD payments, same day
- FedNow — Currency: USD; Where: United States; Use it when…: Instant USD payments, 24/7, where the receiver supports it
- Stablecoins — Currency: e.g. USDC; Where: Global, on-chain; Use it when…: Counterparties who already use stablecoins; weekends and time zones
Now the detail.
Swiss rails
SIC (Swiss Interbank Clearing)
SIC is Switzerland's central payment system for Swiss francs. It's operated by SIX on behalf of the Swiss National Bank. When you send CHF to a Swiss supplier or receive CHF from a Swiss client, it runs on SIC.
Instant payments in CHF: since 20 August 2024, Swiss instant payments have run on the SIC5 platform. They settle account-to-account in seconds, 24/7, including weekends. The largest Swiss banks had to be able to receive them from August 2024, and the remaining institutions follow by the end of 2026. Whether you can send or receive them depends on your provider and the other side's, so ask.
Use it for: salaries, Swiss suppliers, tax and social-insurance payments, Swiss customers.
Swiss QR (the QR-bill)
Not a separate network but the standard bill format for Switzerland and Liechtenstein, in CHF or EUR. The QR code holds the account, the amount and the reference, so paying means scanning, not typing.
Use it for: paying Swiss bills. Full guide: The QR-Bill, Explained for Busy Founders.
European rails
SEPA (Single Euro Payments Area)
A euro-only scheme covering the EU/EEA plus several other countries. Switzerland has been in the SEPA geographical scope since 2006. A standard SEPA credit transfer arrives the same day or the next business day.
There's also SEPA Instant, which settles in seconds where both providers support it. It isn't available everywhere, so check with your provider.
Use it for: EUR payments to EU suppliers and contractors, and EUR from EU clients.
Watch out for: SEPA is EUR only. A CHF or GBP payment is never SEPA. Details: How to Pay EU Suppliers from a Swiss GmbH (SEPA vs SWIFT).
International rail
SWIFT
SWIFT is a messaging network that banks use to instruct international payments. A SWIFT payment can travel through one or more correspondent banks, so:
- it can take longer, depending on the route,
- intermediary fees can be taken on the way,
- you choose who pays the fees (OUR, SHA or BEN).
Use it for: currencies or countries where no local scheme fits, for example many payments outside SEPA and the US.
Watch out for: fee codes and incomplete beneficiary details. Get the name, account, BIC and address right.
US rails
ACH (Automated Clearing House)
The US batch payment network for routine payments: payroll, supplier payments, subscriptions. It's processed in batches, so it's usually not instant; standard ACH settles in one to two business days, and same-day ACH exists.
Use it for: regular USD payments and getting paid by US clients who prefer ACH. See Get Paid Faster by EU and US Clients: Invoice in Their Currency.
Fedwire
The Federal Reserve's real-time gross settlement system for USD. Payments settle individually during operating hours and are final.
Use it for: larger or time-critical USD payments where you want same-day, final settlement.
FedNow
The Federal Reserve's instant payment service, launched in July 2023. It runs 24/7/365, with funds available in seconds, but only where the receiver's institution participates.
Use it for: urgent USD payments to recipients whose provider supports it.
Digital rail
Stablecoins (e.g. USDC)
Dollar-pegged tokens that move on public blockchains. They settle in minutes at any hour, including weekends.
Use it for: clients and suppliers who already hold stablecoins, cross-time-zone payments, and weekend settlement.
Watch out for: network choice (send on the wrong one and recovery may be impossible), address verification, and booking. Full checklist: How a Swiss Company Can Receive USDC (and What to Do Next).
Which rail? A 5-question decision tree
- What currency? CHF → SIC (or Swiss QR for a bill). EUR → SEPA if the recipient is in SEPA. USD in the US → ACH, Fedwire or FedNow. Anything else → SWIFT.
- How urgent? Routine → ACH or standard SEPA. Same day → Fedwire. Instant → FedNow or CHF instant payments, where supported.
- How large? For large USD amounts, Fedwire is often the choice.
- Does the recipient use stablecoins? If yes, and you've agreed the token and network, stablecoins can settle at any hour.
- Who pays fees? On SWIFT, decide between OUR, SHA and BEN on purpose.
Common rail mistakes
- Sending EUR by SWIFT when SEPA would do. Slower and often more expensive.
- Converting before sending. Paying a EUR invoice from a CHF balance means an FX conversion. See The FX Fee Your Bank Never Shows You.
- International wire to a US client who wanted ACH. Extra friction on both sides.
- Wrong stablecoin network. Always confirm in writing and test first.
- Not seeing the fee before sending. If you can't see it, you can't choose.
Bottom line
Match the rail to the currency, the urgency and the recipient. Do that, and most payment problems disappear before they start.
FAQ
What is the difference between SIC and SEPA?
SIC is Switzerland's payment system for Swiss francs. SEPA is a scheme for euro payments across SEPA countries, including Switzerland.
What is the difference between ACH and Fedwire?
ACH processes payments in batches and is typically used for routine payments. Fedwire settles individual payments in real time and is used for larger or time-critical payments.
What is FedNow?
The Federal Reserve's instant payment service, launched in July 2023. It runs 24/7/365 between participating institutions.
Does Switzerland have instant payments?
Yes. Swiss instant payments in CHF launched on 20 August 2024 on the SIC5 platform. Availability depends on your provider.
Is SWIFT a payment system?
Technically it's a messaging network that financial institutions use to instruct payments, often via correspondent banks.
Every rail, one balance
Firma includes SIC, Swiss QR, SEPA, SWIFT, ACH, Fedwire and FedNow, plus stablecoins (USDC on Ethereum and Solana), from one balance. The fee is shown before you send, and conversions use the Reuters rate. Money in is free. Plus is Fr. 499 a month with 25 bps out.
New here? Start with How to Open a Swiss Business Account in Days, Not Weeks. Comparing providers? Use Traditional Bank vs Fintech Business Account: A Swiss Founder's Checklist.
Firma is a regulated financial technology company, not a bank. Banking services are provided through banking partners. Balances are digital stablecoin tokens, not bank deposits, and are not covered by esisuisse.
Sources: SIX, instant payments in Switzerland; Swiss National Bank, market launch of instant payments (21 Aug 2024); European Payments Council, SEPA timeline; Federal Reserve, FedNow; Federal Reserve, Fedwire Funds Service; Firma.
