What Is a Wire Transfer?
In plain English
A wire transfer is an electronic method of sending money directly from one bank account to another, either domestically or internationally. Wire transfers are processed through secure networks like Fedwire or SWIFT and typically settle the same business day. They are commonly used for large transactions such as real estate closings, business payments, and international remittances.
How Does a Wire Transfer Work?
You provide your bank with the recipient's name, bank name, account number, routing number (or SWIFT/IBAN for international transfers), and the transfer amount. Your bank debits your account and sends payment instructions through a secure network. The receiving bank credits the recipient's account, usually within hours for domestic wires or one to two business days for international wires.
How Much Does a Wire Transfer Cost?
Domestic wire transfer fees typically range from $15 to $30 for outgoing transfers, while incoming wires may be free or cost $10 to $15. International wire fees are higher, usually $35 to $50 for outgoing transfers, plus potential intermediary bank fees and exchange rate markups. Some premium checking accounts waive wire transfer fees entirely.
What Is the Difference Between a Wire Transfer and an ACH Transfer?
Wire transfers are processed individually and settle within hours, making them ideal for urgent or large payments. ACH transfers are processed in batches and take one to three business days but are typically free or very low cost. Wires are irrevocable once sent, while ACH transfers can sometimes be reversed. Choose wires for speed and ACH for cost savings.
Frequently asked questions
Can a wire transfer be reversed?
Wire transfers are generally irrevocable once processed. If you send money to the wrong account, your bank can request a recall, but the receiving bank is not obligated to return the funds. This is why wire transfer scams are particularly dangerous.
How long does an international wire transfer take?
International wires typically take one to three business days, depending on the destination country, intermediary banks involved, and time zones. Some transfers to certain countries may take up to five business days.
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Related terms
ACH Transfer
An ACH transfer is an electronic bank-to-bank payment processed through the Automated Clearing House network, used for direct deposits, bill payments, and money transfers.
IBAN
An IBAN (International Bank Account Number) is a standardized international numbering system used to identify bank accounts across borders for international transfers.
Routing Number
A routing number is a nine-digit code that identifies your bank or credit union in the U.S. financial system, used for direct deposits, wire transfers, and bill payments.
Cashier's Check
A cashier's check is a check issued and guaranteed by a bank, drawn from the bank's own funds rather than your personal account.