How to Make a Bank Wire Transfer

A wire transfer is a good option when moving money swiftly and securely. The procedure is straightforward, but acquiring material and presenting it in the appropriate way can be difficult. Before you authorize a bank transfer, keep in mind that the funds you send will disappear very instantly, and you will not be able to retrieve them. You can't "stop payment," and you can only cancel the transfer and get a refund if certain conditions are met. You're taking a chance if you don't know who will get the money.

Key Takeaways

Wire transfers are electronic transactions that transfer funds from one account to another.
Wire transfers can be domestic (inside the United States) or international (within the world).
Domestic wire transfers are usually completed in 24 to 48 hours by banks.
A wire transfer can cost up to $45, depending on the bank.
Your recipient may be able to receive their money in minutes if you utilize a wire transfer provider like Western Union.

Types of Wire Transfers

Wire transfer is a word that is frequently used to describe:

Traditional bank networks are used to move funds from one bank to another.
A money transfer service, such as Western Union, uses someone's bank account to make an electronic payment.

The particular method will vary depending on the type of transfer, but the "wire transfer" process as defined above refers to a money transfer from one bank to another.

How To Set Up a Wire Transfer

Before you begin, double-check all of the specifics of your wire transfer with your bank. You may need to fill out paperwork at the bank, or you may be able to begin the procedure online. Check with your service provider for restrictions, and keep in mind that certain banks may require you to have been a customer for a particular period of time before making a wire transfer. To send money through bank wire, you'll most likely need the following information, which you can get from the recipient:

Name of the bank that will receive the funds (the bank that the money is going to)
The American Bankers Association (ABA) routing number or equivalent code of the recipient bank
Account number of the payee at the bank
If you have any further information to give, please do so (such as further delivery instructions)

After you've submitted your request, call your bank to make sure they have everything they need. Expect to pay a fee for the service, and you may be required to pay even if you receive a bank wire into your account. Domestic wire transfers can cost up to $30, and international wire transfers can cost $45. Your card issuer may levy these fees if you use a credit card since the wire transfer is treated as a cash advance. Never send money based on information received via email. Suppose someone offers you instructions through email, phone the recipient, and double-check the wiring instructions before proceeding. This is especially critical if you're wiring big amounts of money. Verify where the money is going if your title company gives wire instructions for a down payment.

How To Receive Money by Wire

To receive money by wire, you'll need to give the person or business sending money your bank account information. To ensure that you utilize the correct numbers, ask your bank for incoming wire instructions. Because international wires may require a Swift Code, the ABA number you usually use—the one that appears on your checks or that you use for direct deposit—might not work for foreign transfers. Contact customer support and double-check that you're using the correct set of numbers and instructions to avoid any misunderstandings. Receiving a wire transfer costs less than sending one ($30 and higher), and international transfers are more expensive than domestic transactions.

Waiting for Credit

Bank wires are quick, but they don't always appear in the recipient's account right away. Because the receiving bank often has a backlog of incoming bank wires, crediting the eventual payee can take some time. Your bank may complete your bank wire within 24-48 hours, depending on when you submit your instructions. This can be aggravating when transferring huge amounts of money, but it is expected. It may take a few phone calls to reach someone who can confirm the transfer was accomplished, but sometimes it's simply a matter of waiting. If you're the recipient of a bank transaction and are worried or confused, double-check that you received a legitimate wire transfer. To do so, contact your bank and inquire about whether the funds have "cleared" and any issues you may have about the transaction.

Alternative Ways To Move Money

A wire transfer may be your sole option in some cases. However, there are other options for sending and receiving money.

Money Transfer Services

Money transfers using Western Union and MoneyGram are called "wires," and some of these transfers are very instantaneous. In only a few minutes, the giver can go into a retail store with cash, and the recipient can walk out of another outlet with money. If you fill your account with your bank account, the transfer will take a few days. You will be charged additional costs if you use your credit card to make a money transfer.

Cashier's Checks and Money Orders

If you need money urgently, cashier's checks are just as safe as bank wires and are less expensive than wire transfers. When the check is printed, the bank or credit union deducts the funds from the customer's account. Money orders are comparable to cashier's checks in that they are affordable and convenient, but they are not as secure. Banks, credit unions, convenience stores, and post offices sell them. They're not suited for large transactions due to issuer-specific maximum limits, which would necessitate the hassle of placing multiple money orders.

Other Options

Several websites and apps allow you to indirectly send money by tapping into your bank account. Venmo, PayPal, Cash App, and other services handle electronic transfers for you. Although these several means of transmitting money make the process simple, it usually takes a few days and requires trust from all parties involved. Check with those service providers before incurring any risks (especially if you pay someone you don't know).

Frequently Asked Questions (FAQs)

How do you transfer funds to a bank account?

You'll need the recipient's contact information to wire money to a bank account. You'll need the recipient's first and last name, contact information, account number, and routing number for wire transactions. So that the funds are routed to the correct area, request that the receiver double-check the data with their bank or credit union. You'll then go to your local bank, provide the required information, and wire the funds.

How can you recover money from a wire transfer?

After initiating a wire transfer, there is no guarantee that you will be able to reclaim your funds. You have the best chance if you tell your bank or credit union before the recipient institution accepts the transfer. Explain the situation to your bank, especially if the transaction was fraudulent. You should also tell your local police, your state's consumer protection office, and the Federal Trade Commission if you have been cheated.