What Is a Wire Transfer? | Free Guide on Wire Transfers

What is a wire transfer? In this article, we’re going to break down everything you need to know about one of the most important features in international banking: wire transfers.

This will include the step-by-step process to send wire transfers and answers to common questions, such as “How long does it take to send a wire transfer?”

This article is part of our free series on sending a bank transfer, which you can access here right now.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

1. What Is a Wire Transfer?
2. How Do I Send Wire Transactions?
3. How Long Does a Wire Transfer Take?
4. Frequently Asked Questions
5. Do You Want Help Opening Bank Accounts?

What Is a Wire Transfer?

A wire transfer is a bank transfer that is sent between financial institutions. In most cases, it refers to an international wire transfer, which involves sending money abroad using a SWIFT code. Wire transfers are considered secure transactions and are standard practice for financial institutions around the world.

Importantly, a wire transfer can have a different definition when used to describe domestic transfers. In the case of domestic transfers, it more commonly refers to sending an electronic funds transfer using a bank routing number.

Of course, the specific wire transfer fees for sending and receiving funds vary depending on the wire transfer process being used. For example, online money transfer services offering instant wire transfer services often charge lower wire transfer fees than a money-wiring service.

How Do I Send Wire Transactions?

To send wire transactions (or wire transfers) you will need certain information about the receiving individual or entity. However, before sending a transfer, you also need to make sure that your bank account has international transfers enabled as an available service. This is important because many domestic commercial banks do not automatically enable international transfers for their customers.

Once you have confirmed that you can send an international transfer from your bank account, you are able to proceed with collecting the necessary information about the recipient in order to send a transfer.

What Information of the Recipient Do I Need to Send a Wire Transfer?

• Name of the receiving bank
• Address of the receiving bank (not always required)
• Bank identification code or SWIFT code of the receiving bank
• Account number of the receiving account
• Full legal name of the recipient (person or entity)
• Address of the recipient (connected to the bank account)
• Recipient’s contact information (varies by bank)
• Additional notes or instructions for the transfer

Of course, you may also need to provide information on correspondent banks. In fact, correspondent banking information is a common requirement when sending international transfers, especially to smaller banks in foreign jurisdictions.

How Long Does a Wire Transfer Take?

The length of time that it takes for a wire transfer to send depends on several variables, listed below. Importantly, the more correspondent banks that participate in the transfer, the longer it will take for a transfer to clear.

On the other hand, if you are sending transfers between two major financial institutions that do not require correspondents, transfers will take far less time.

Variables Impacting Delivery Time of Wire Transfers

• Location of the financial institutions
• Involvement of high-risk entities
• Sending or receiving funds to EU, UK, FATF listed countries
• Strength of the sending bank’s correspondent relationships
• Strength of the receiving bank’s correspondent relationships
• Total number of correspondent banks involved
• Whether additional information is required to release the transfer
• Whether additional information is required to receive the transfer

Do Wire Transfers Have Fees?

Yes, wire transfers have fees. Each bank sets its own fees for sending and receiving transfers. However, in most cases, incoming and outgoing transfer fees range from USD 15.00 to USD 35.00, depending on where the bank is located.

Not surprisingly, the fees for incoming transfers are usually slightly lower than for outgoing transfers. However, in certain instances, the fees for incoming transfers can be free, though free incoming transfers are typically reserved for private banking clients.

On the other hand, outgoing transfers do have fees at all banks. While a base fee is always charged for transfers, larger transfers can also incur a percentage fee up to a certain amount. With this in mind, if you plan on sending and receiving many transfers from a bank account, it is often best to confirm the fees prior to applying for an account.

Do Wire Transfers Have Limits on How Much Money You Can Send?

Certain banks do have limits on how much money you can send in a single transfer, or within a specific time frame like day, week, or month. With this in mind, if you have a certain amount of money that you need to transfer on a regular basis, you should speak with your bank directly to confirm any limits that apply to your account.

Do You Want Our Free Non-Resident Banking Guide?

Sign up here to receive our Free Non-Resident Banking Starter Guide and weekly updates on the best account opening options available:

Frequently Asked Questions

Below are a few of the most common questions we receive from people looking into this topic. If you have further questions you would like to ask our team, don’t hesitate to get in touch.

How Is a Wire Transfer Done?

A wire transfer is done by providing specific information to your bank about the individual or entity that you want to transfer money to. This information includes the name, address, and SWIFT code of the receiving bank along with the name, address, and account number of the receiving individual. You may also be asked to provide additional information depending on the correspondent banking relationships of the sending and receiving financial institutions.

How Safe Are Wire Transfers?

Wire transfers are very safe and secure as long as you have the correct information and the individual receiving the funds is a known party. With this in mind, it’s important to confirm bank, recipient, and account information prior to sending a transfer. Additionally, you should only send a transfer to someone that you are familiar with.

How Do I Send a Domestic or International Wire Transfer?

The information required to send a domestic wire transfer and an international wire transfer will vary. However, in both cases, you will need to confirm information about the bank, the recipient, and the account prior to sending. Then, you will need to provide this information to your bank along with the amount being sent in order to initiate the transfer.

What Is the Difference Between a Wire Transfer and a Regular Transfer?

The main difference between a wire transfer and a regular transfer is that a wire transfer typically refers to an international wire transfer over the SWIFT network while a regular transfer typically refers to an electronic funds transfer over the ACH network.

Do You Want Help Opening Bank Accounts?

If so, you can get access to GlobalBanks IQ in just a few clicks.

GlobalBanks IQ is our flagship international account opening solution. It gives you instant access to the…

+ Expert insights on which banks to choose & why

+ Step-by-step reports to open accounts in the best banking hubs

+ GlobalBanks international bank database & detailed bank profiles

+ Tried & tested banks for high-risk, offshore, & non-resident clients

+ Plus, get YOUR most pressing bank account opening questions answered by our team!

And “yes!” GlobalBanks IQ helps foreigners and non-resident individuals open bank accounts.

In fact, GlobalBanks IQ even helps non-resident, foreign & offshore entities open bank accounts.

Use the link in our menu above to learn more about GlobalBanks IQ. Or, contact us directly with any questions!