How Wire Transfer Money Works
Whenever you want to move money fast and securely, a wire transfer money is the best channel that can help you get the work done. Here are the requirements you need to move money via wire transfer.
When you want to transfer money overseas, wire money transfer can be the best alternative since it is instant, reliable and secure. A wire transfer can also be a great option for transferring your cash when making large transactions like purchasing a house.
What is a Wire Transfer?
A wire transfer is where money is transferred electronically. A traditional wire transfer involves cash moving from one financial institution or credit union to another using a network known as SWIFT or Fedwire.
Why wire transfers are fast
Wire transfer is helpful because once you send the money, the recipient will get it in less two days. In the US, same-day money transfer within the country is possible while international transfers will take one or two days.
Cleared funds: since cash moves fast, the recipient will not have to wait for the cash to be cleared before cashing out or using it. This means that there is no hold placed on the cash sent through wire transfer. Wire transfer is more secure than checks for anyone selling products or services because checks can bounce and it will take more days to know whether a payment is cleared or not.
Time for processing the cash
In most cases, wire transfers are completed in one day, based on how quickly you submit your request to send cash. Even if the cash is at the banking facility, it might take a couple of hours for the receiving bank to display the wire proceeds in the recipient’s account. A bank attendant might be required to do some procedures to make the cash accessible. However, you can try calling the bank if you are in a hurry to access the cash you receive via wire money transfer.
How to Use a Wire Transfer
Sending money via wire transfer: first, you need to present the instructions to your financial institution. Give details about the receiver’s bank account. When making a request with the bank, you might have to use the form that is provided in the bank, but some financial institutions allow you to complete the procedure online.
Receiving money through wire transfer
You must give your bank account details to the individual or company transferring the funds. Ask the bank to give you incoming wire instructions to be certain you are using the correct numbers. While the cash will move in one day, it might take you one more day for the cash to reflect in your account balance online. It will cost you $40 to send money via wire transfer and $10 or free to receive the cash transferred.
How to wire money
Wiring money is the fastest way to transfer a huge sum of money within the US and overseas. If you find the process hard, here is a post to help you know everything.
Choose the provider
Financial institutions and non-bank money wiring providers can assist you to send a wire transfer to any location. For bank wire transfers, both the sender’s and receiver’s banks are involved. Wiring within the United States will be processed the same day, but an international transfer will take likely two days. Firms like MoneyGram and Western Union will let you move funds in the US and international locations securely. You can send cash to banks accounts, send cash for pickup and on some occasions, via wire transfer. The transfer will take one hour to a couple of days, but this will depend on the service.
Note that a wire transfer is irreversible and the recipient can be anonymous. Therefore, don’t send cash to any person you are not familiar with.
Collect the required information
If you choose to use your bank to transfer funds, make sure you have:
A legal identity card
An account equipped with the amount you intend to send
A bank account number
Full name and contact details of the receiver
Bank transit number of the recipient
Bank account number of the recipient
Non-bank providers might not need the bank account information based on what delivery option you intend to use. However, you will need to give them the name of the recipient and location.
Check the fees and select the transfer mode
Your financial institution and non-bank provider will allow you to transfer cash in various ways like online, via phone banking or at the bank branch. Since the transfer method will have varying costs, make sure you compare the rates before you make any decision.
Understand the fine print
Before you wire money internationally, make sure you ask all the details about exchange rate, total charges and taxes collected by the parties.
Fill the form carefully
Whether you talk to the bank officer or fill out an online form, be specific when giving the information required. Make sure you don’t misspell a name or write the wrong numbers as this will prevent the receiver from assessing the cash.
Keep the receipt well
Your bank will give you a confirmation transaction number on the receipt so that you can keep it and refer to the transfer in case any issue arises.
Other Types of Electronic Transfers
In most cases, the word ‘wire transfer’ is used for different types of electronic transfer and these transactions are not immediate or secure like bank wire transfer. Note that almost every transaction is electronic.
Money transfer services
In some cases, Western Union and MoneyGram are known as wires and most of their transfers are instant. The sending party can go into the retail branch with cash, and the receiver will visit another outlet to get the cash within a few minutes. However, if the transfer is funded from a bank account, the procedure might take longer. Using your credit card to transfer the cash will attract more charges.
Automated clearing house transfers tend to be different. The funds are transferred from bank to bank and the process will take several days. Note that the ACH payments can be reversed on a limited situation.
App and peer-to-peer payment tools
There are numerous payment vehicles that let you transfer cash by tapping into your bank account indirectly. Venom, PayPal, square cash will help you send cash online safely.
Money orders can be purchased at financial institutions, credit unions, conveniences stores, and post offices. They are relatively cheap but they are not suitable for huge purchases since they have maximum limits.
When you want cleared funds, the best thing to do is get a cashier’s check. Since the cashier’s checks are paid from the bank’s account, they are considered secure as bank wire transfers. Typically, they are less expensive than a wire transfer.