A wire transfer is a fast way to send money electronically, to anyone with a bank account. In a wire transfer, the sender’s bank issues the approval to transfer funds to a recipient’s bank account. The communication happens through a banking network such as Fedwire or SWIFT. You can use a bank transfer to send money locally or internationally.
Digital Funds Transfers
Some users use the term “wire transfer” to describe the transfer of digital funds using payment processors such as PayPal or Western Union. It is therefore important to state the requirements of the wire transfer when requesting to senders use one.
Overall, a bank-to-bank wire transfer is secure and irreversible, once the sender’s bank makes it. The sender’s bank usually makes the transfer after waiting for at least 30 minutes. During that period, the sender may cancel the transfer.
Speed of Wire Transfer
When moving large sums of money, a wire transfer is preferred because it is fast and secure. If the transfer is local, the recipient can get the funds within the same day. For an international wire transfer, the recipient can get the funds within a day or two.
Funds Get Cleared Fast
There is no “hold period” placed on wire transfer funds, when the transfer is received by the recipient bank. That makes it ideal for merchants; there is no danger of receiving bogus payments.
Wire Transfer Processing Time
Unlike checks, a wire transfer cannot bounce, neither does it take several weeks to arrive and clear. If you place a transfer early in the day, it is possible for the recipient to get the funds on the same day.
How to Make Wire Transfer
Sending Money via Wire Transfer
To make a wire transfer, you need to instruct your bank to make a wire transfer. Your bank will ask you, to provide the receiver’s wire transfer details. You need to get from the receiver.
In turn, the receiver has to get the instructions from their bank, by asking for “incoming wire transfer” instructions.
Most banks provide you with a form to fill out when you request a wire transfer. Other banks allow you to fill a digital version of that form online. Once you fill and submit the form, your work is done, the bank will do the rest.
Receiving Money via Wire Transfer
To receive money via wire transfer, you need to provide the sender with “incoming wire transfer” instructions, which you get from your bank. You will get the funds within the same day, if the transfer is made early in the day. Transfers made in the afternoon may take a day to complete.
Wire Transfer Fees
You may pay about $30 to $45, to make a wire transfer, and incur a charge of $0 to $10 to receive a wire transfer. Making a wire transfer from your checking account is the most affordable way to make one.
You will incur additional charges above the standard wire transfer charges, if you choose to use your credit card to fund the wire transfer.
That is all there is to making a wire transfer. The transfer is always secure, in that, the sender will get the funds. Its downside is that you cannot reverse it. You therefore have to be sure of the transfer before making one.