A wire transfer is an electronic transfer of funds via a network that is administered by banks and transfer service agencies around the world. It is a method of transmitting money electronically between people or businesses in which no physical money is exchanged. Wire transfers move money electronically from one bank account to another, and they can be domestic (between two U.S. accounts) or between a U.S. and international account. The sender is the one who provides all the instructions for the transfer, which may include the recipient’s name, bank, account number, amount, and sometimes a pickup location. Wire transfers can be facilitated by a bank (sometimes referred to as a “bank wire”) or by a nonbank money transfer provider.
Wire transfers are common for both domestic use in the U.S. and international use. They are popular for international transfers because they are easy to exchange to a foreign currency, if needed. Wire transfers are often used to pay invoices, to send funds among family, or for real estate transactions because they allow for the individualized transmission of funds from individuals or entities to others while still maintaining the efficiencies associated with the fast and secure movement of money.
Wire transfers can be a fast and secure way to transfer money domestically and internationally, but they may also include additional fees. They are a good option if you need to complete a transfer urgently or need to move large amounts of money. Wire transfers are typically thought of as a less secure system for sending money compared to ACH transfers, as wire transfer payments are relatively instant and therefore impossible to reverse if your cash is transferred in error or as a result of fraud.
In summary, a wire transfer is an electronic transfer of funds from one bank account to another, and it is a common way to electronically move money from one person to another.
