Wire Transfer: Things to Know

0
205

Wire Transfer: Things to Know

When you’re trying to send money cross-border or bank transfer between two banks in the United States, you’ll want to understand all the moving pieces before making your move.

This post will answer some of the most common questions about bank transfers and what to expect when sending or receiving them.

What Is a Wire Transfer?

It is simply the instructions to a financial institution that you ask them to send your funds by wire to another financial institution. You can wire money in any amount or at any time. The most common types of credit transfers are business-to-business credit transfers and domestic bank-to-bank credit transfers.

The former is used when businesses send money to other businesses, such as a billing fee, while the latter is used when a consumer wants to transfer money from one bank account to another. Both are typically available online or through the phone.

Types of wires

1. Domestic

When a consumer wants to send money domestically, it is typically done through his bank account. A domestic bank transfer is a service offered by banks that allows customers to send money from one bank or another by using online banking or their mobile app. It’s mostly used for small transfers of less than $2,000.

2. Business-to-business bank transfer

With a business-to-business wire transfer, businesses send money to other businesses without having to deal with the domestic wires, steps, and fees usually associated with using that service. Businesses use these credit transfers to send money overseas for foreign trade, customs fees, or travel. These transfers can be done online through services like Western Union or by phone.

3. International

An international credit transfer is when money is being transferred from one country to another. These are also known as SWIFT wires. It’s a common way for businesses and consumers in the United States to send money overseas for foreign trade, travel, or foreign investments.

How long does it take?

Bank transfers are done immediately or within one business day. However, there are a few cases in which it may take longer:

1. The receiving bank may not have the funds available to withdraw right away.

If the receiving financial institution does not have an immediate need for the money you’ve transferred, it may delay accessing those funds until they’re needed.

2. A holiday or weekend may prolong the process.

Banks are closed on bank holidays and weekends, so if you’re trying to bank transfer money on either of those days, it may take longer for your funds to be available.

Steps on How to Wire Money

1. Create an online or mobile account.

You’ll need to set up an online or mobile banking account to wire money. It is required that you have a bank account with your financial institution before sending funds. If you are using a debit card, check your card’s coverage area so your transaction will go through.

2. Go to the receiving bank’s site.

When you’re ready to send the money, go to the receiving bank’s site. The number you need is usually listed near the bottom of the homepage.

3. Establish a payment type.

You will need to establish a payment type for your credit transfer with your financial institution. This will determine what type of funds will be sent.

4. Add the receiver’s information.

You will need to add your recipient’s receiving bank and account number to send the money. You’ll also need to know their name and the last four digits of their Social Security or another personal identification number (PIN).

5. Make the transfer.

Once you have added all the information, click on “send money” or “enter details.” The next step is to confirm all the information. After that, you can send your money. The time it takes varies by the financial institution.

How safe is it?

The safest way to send money is through your bank. A licensed financial institution will always do a credit transfer with strict bank transfer safety protocols. However, you can make sure you are even safer by using a wire only for business purposes.

Conclusion

Wire transfers are a convenient way to make payments. You don’t have to deal with cash, checks, money orders, or carrying cash on you. The process is also fairly simple once you understand the steps involved in making and completing one.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here