How a Wire Transfer Works From Start to Finish

A wire transfer is an electronic method for moving funds directly from one bank account to another. This process operates through a secure global network, allowing transactions without physical cash exchange. Wire transfers are known for their speed and reliability, serving as a common tool for both domestic and international transactions.

Information Required to Send

To initiate a wire transfer, a sender must meticulously gather specific details about the recipient and their bank. This includes the recipient’s full legal name and their complete physical address. For domestic transfers within the U.S., the recipient’s bank information needs to include the full bank name, its address, and the nine-digit ABA routing number.

For international transfers, an additional code is necessary: the SWIFT/BIC (Society for Worldwide Interbank Financial Telecommunication) code. This code uniquely identifies the recipient’s bank in the global banking network. The recipient’s bank account number, or an International Bank Account Number (IBAN) for some countries, is also essential for both domestic and international wires. The sender will also need to provide their own bank account information and may be required to show government-issued identification, especially for in-person transfers. Additionally, the exact amount to be transferred and the currency must be specified. Some banks or jurisdictions might require a stated purpose for the transfer, particularly for international transactions, to comply with regulatory requirements. Confirm all these details directly with the recipient.

Initiating a Wire Transfer

After collecting all the necessary recipient and bank information, a wire transfer can be initiated through several common methods. One way is to visit a bank branch in person, where a teller will assist with the process. The sender typically provides their identification and submits the pre-gathered recipient and transfer details.

Another widespread method is through an online banking portal. Senders can log into their bank’s website or mobile application, navigate to the wire transfer section, and input the required information into designated fields. This digital process often includes a final review screen to confirm all details before authorizing the transfer. Some individuals or businesses might also utilize specialized third-party wire transfer services, which offer alternative processes and fee structures, catering to specific use cases. Upon successful initiation, a confirmation number or receipt is usually provided to the sender, serving as proof of the transaction.

Receiving a Wire Transfer

For a recipient to receive a wire transfer, they must provide the sender with specific banking information. This typically includes their full legal name, the complete name and address of their bank, and their bank account number. For domestic transfers, the recipient’s bank’s ABA routing number is also required.

For international incoming wires, the bank’s SWIFT/BIC code is necessary to ensure the funds are routed to the correct institution. Recipients can usually obtain these details by contacting their bank directly, checking their online banking portal, or reviewing a voided check or bank statement. Once the funds are sent, recipients are generally notified of an incoming wire transfer through a direct deposit into their account, a notification from their bank, or an update on their account statement. Funds from domestic wire transfers are often available quickly, typically on the same business day, after being processed by the recipient’s bank.

Important Considerations

Wire transfers involve specific processing times. Domestic wire transfers within the United States generally complete within the same business day, often within a few hours, especially if sent before a bank’s daily cut-off time, which can range from 2 p.m. to 5 p.m. local time. International wire transfers typically take longer, usually between one to five business days, influenced by factors such as different time zones, bank holidays, and the involvement of intermediary banks.

Fees are associated with wire transfers, and both the sending and receiving banks may impose charges. For domestic outgoing wires, fees commonly range from $20 to $30, while incoming domestic wires might incur a fee around $15. International wire transfer fees are generally higher, with outgoing fees ranging from $25 to $60, and incoming fees up to $25. Intermediary banks involved in international transfers may also deduct fees from the transferred amount, meaning the recipient might receive slightly less than the sender dispatched. Consult with your financial institution for their specific fee schedules.

Wire transfers are largely irreversible once processed, making accuracy and vigilance paramount. Recovering them is exceptionally difficult, even in cases of error or fraud. Common wire transfer scams include imposter scams, where fraudsters impersonate trusted individuals or entities, and business email compromise, which involves deceptive requests for fund transfers. To prevent fraud, it is crucial to meticulously verify recipient details, ideally through a separate, known contact method, and to be suspicious of urgent or unexpected requests for wire transfers. Never wire money to someone based solely on an unverified email or text message. If a wire transfer has been sent, it can sometimes be tracked using a confirmation or reference number.