Three Things You Should Know About a Wire Transfer

In today’s financial world, speed and efficiency are key when it comes to completing real-world transactions. New technologies and the slowing use of paper currency have made electronic payment methods the standard.

In fact, contactless payment methods jumped in usage last year. Nearly 75% of certain sellers within the U.S. accepted forms of contactless payment.

The wire transfer is one such tried and true method of electronic payment. If you’re someone about to make a large purchase, continue reading for information about making a wire transfer.

What Is a Wire Transfer?

A wire transfer is an electronic form of payment that allows money to be transferred electronically via banking institutions across the globe.

This form of payment allows for funds to be sent and received quickly and securely regardless of geographic location. Certain information does need to be shared with the participating institution prior to the transfer of funds.

What Is the Cost of the Transfer?

Wire transfers are completed domestically and internationally, but the fee to do so varies according to the institution, destination, and the dollar amount in question.

It’s a good idea to note that the funds of the wire itself won’t be the only amount you’ll be responsible for. Wire transactions completed domestically can cost up to $35 per wire, with an international wire transfer fee typically costing a bit more.

Know It’s Completed Quickly

The speed and safety associated with a wire transfer make it a great option for banking purposes. But how long does a wire transfer take? Again, it depends on whether or not the wire is domestic or international.

Most wires processed domestically are done so within 24 hours. International transfers can take up to 5 days to clear. The recipient of funds will have immediate access to the wire once it hits the appropriate account.

You Can Transfer Large Amounts

Wire transfers allow you to transfer large amounts of money in one fell swoop. Companies who need to pay for large purchases can benefit from wires, as well as individuals looking to make a one-time purchase.

A good example might be an individual looking to borrow against personal collateral. Online sites such as Easy Title Loans allow individuals to utilize their personal collateral to borrow money against it. Once funds get approved the money is then sent via wire transfer directly into a bank account.

Another Option: ACH vs Wire Transfer

Another option if you’re in need of a funds transfer is to utilize an ACH transfer. ACH is short for Automated Clearing House and is a sort of middleman in which electronic transfers between banks get completed.

The transfer itself takes longer but may cost a little bit less than a standard wire transfer. Wire transfers are permanent and instantaneous once sent out. ACH transfers are more limited but can be reversed.

With Speed and Security

By doing some research prior to wiring out any of your own money, you’ll be able to give yourself some peace of mind as to how to do a wire transfer correctly.

Wire transfers offer a way to process finances safely and securely in an ever-evolving electronic world. Be sure to check out our Business and Finance sections for additional ways in which you can safeguard and grow your finances.

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