Wire transfers offer a way to send money electronically from one person or thing to another. It’s possible to wire money between banks in the U.S. along with international financial institutions and non-bank money transfer providers.1
A wire transfer may be preferable for situations where you’ll have to move larger amounts of money or are on the receiving end of a large payment. You may pay a fee to send or receive a wire transfer, and the amount of time necessary to have a money wire to process can vary.
What is a Cash Wire Transfer?
A wire transfer is an electronic transaction that you could initiate through your lender or a non-bank transfer provider, such as Western Union. When you wire money, you’re authorizing the lender or move provider to transfer funds from your account to someone else with a digital payment system.
No actual money changes hands when wiring money to an individual or a firm. A wire transfer might be a fast and convenient way to transfer cash or get it. Depending on the financial institution, wire transfers could be performed in a matter of hours, though it can sometimes have a few days for them to process.2
Wire transfers are normally used for situations where large amounts of money has to be moved. By means of instance, if you are buying a home, your closing attorney may ask you to wire your down payment and closing cost funds to their account. If you’re selling a home, the proceeds of the sale could be released to you through a wire transfer. You can also use wire transfers to move smaller amounts of money if needed.
A wire transfer differs from an Automated Clearing House (ACH) transfer, which you can use to transfer money between accounts at several banks that were linked or to pay bills.
the Way to Wire Money
The process for wiring money is quite straightforward. The most important things to consider when transferring money by cable would be:
- Limitations on how much money you can proceed, if any
- Transaction limits on the number of transfers you can send daily
- Wire transfer processing times
- Wire transfer fees
Banks and non-bank money cable providers can charge fees to send and receive wire transfers. Usually, international wire transfer prices are higher than domestic wire transfers. Additional banks may restrict the number of cable transfers you can make in a certain time frame or the amount of money you can send per transfer.3 4
Here are the four big steps of a wire transfer.
1. ) Decide on a Wire Transfer Provider
The first step in how to wire money is deciding who you want to use for this process. Your lender may be an obvious choice if you already have a checking account, savings account, or other accounts in a given financial institution. Depending upon the bank’s policies for cable transfers, you may be able to initiate a move online, or you could do it in person by visiting a branch.
Another choice is to use a cloud-based transfer provider, such as Western Union or MoneyGram. These companies allow you to send money via wire transfer into a bank account, but the person you’re sending money to may also have the option of picking it up as cash or having it sent to your mobile payment app.5 6
Using a non-bank wire transfer provider, you may be able to wire money using your debit card, bank account, or credit card.
2. ) Give the Transfer Details
When transferring money, you will find particular pieces of information the creditor or transfer supplier will need to finish the transaction. These include:7
- A copy of your government-issued ID
- Your funding source (i.e. debit card, bank account, credit card, or cash –the last if you are moving money in person at a non-bank provider)
- Transfer recipient’s name and address
- Transfer recipient’s bank account and address (if moving money to a bank account)
- Bank account number and routing number for your recipient (again, if moving money to a bank account)
- Recipient’s mobile number if you are wiring money to a mobile wallet app
If you’re wiring money to a different lender, you may also need to provide a Society for Worldwide Interbank Financial Telecommunication (SWIFT) code. This is a unique code number that’s assigned to banks, and it could be asked to complete bank-to-bank domestic and/or international wire transfers.8
3. Review Terms and Conditions and Pay the Wire Transfer Fee
As stated previously, you will most likely pay a fee to wire money, irrespective of whether you’re doing it via a bank or a non-bank provider.
When transferring money from a bank account, the fee is automatically deducted from your balance, along with the funds that are being transferred. If you’re using a non-bank transfer service, this fee may be charged to your bank account, debit card, or credit card, depending on how you pay.
If you’re unsure of what a wire transfer will cost, ask a schedule of fees up front. You might decide to compare prices between your bank and a non-bank transfer supplier to ascertain which costs less. You should also review any other fine print Concerning the move prior to signing off to make sure you understand what you’re agreeing to.9 10
4. ) Await the Transfer to Procedure
Whenever you have submitted a wire transfer, you may need to wait some hours or days for it to process and the funds to be sent to the recipient. The timing can depend on where you’re sending the money and in what amount.
It’s a wonderful idea to have a confirmation number in the bank or the company with which you’re transferring money. That way when you have got a matter, you have a way to reference the transaction later.4
Can a Wire Transfer Be Canceled?
Generally, after you initiate a wire transfer, the process of transferring the money from the account to the recipient’s starts immediately. That’s assuming the transfer occurs during regular business hours.
If the move is still showing in the bank’s processing system as”scheduled,” however, it may be possible to cancel the transaction. You may be able to do this through your online banking access or by telephoning a branch.
With international wire transfers, you might have a slightly longer window to cancel. For instance, you might have up to 30 minutes after initiating the move to ask your bank to cancel it. But this policy may vary from bank to bank, so it’s important to check with your lender to ascertain how cancellations are handled.11