What is a Wire Transfer?
A wire transfer is an electronic transfer of money from one bank or credit union to another, domestically or internationally, using a network like SWIFT or Fedwire. It is also known as a bank transfer or a bank wire, and sending or receiving money through a wire transfer is also called sending or receiving a wire.
How do Wire Transfers work?
To send a wire, you just need to provide information about the recipient – like their name and bank account – to your bank by filling a form online or by visiting a physical branch. To receive money through a wire transfer, you need to provide your details to the sender, and they initiate the transfer through their bank.
How much does a Wire Transfer cost? What is the fee?
The fee depends on the bank, but usually it takes around $10 to receive a wire transfer, and around $30 to send a wire.
Why should I use wire transfers for sending or receiving money? What are the advantages?
The main benefit of a wire transfer is that money is available quickly – domestic wires can complete on the same day, and even international wire transfers take only 1-2 days. Plus, a bank wires money only when the funds are available in the sender’s account, so you can be certain that the money is yours once you receive it; like a cashiers check.
Are there any disadvantages of wire transfers?
You need to be careful about who you are sending money to, especially if you are wiring money to a place like Western Union that pays out the money in cash to the recipient. In such cases, it is difficult to verify who actually got the money, since someone with a fake ID can collect the cash. Also, the cost of a wire transfer could be higher than other ways of transferring money.