Speed can often be an important factor in considering payment options. If you are looking to transfer money immediately, then a wire transfer is the safest and most reliable way to do so. A wire transfer is a method of transferring money from one group to another, either through bank accounts or transferring cash through a third party vendor or service. Wire transfers are particularly useful when transferring money to a person or business internationally because money can be made available right away and does not require a bank account.
Bank wire transfers require specific information about the bank account that will receive the funds. For transferring money without going through a bank, a nonbank wire transfer allows the receiver to pick up their transferred money at a cash office.
How Long Does a Wire Transfer Take?
The biggest benefit to wire transfers is that the funds are available almost immediately to the receiver. Funds process within one to two business days, though there are same-day transfer options available.
Nonbank wire transfers, especially for international transfers, can take a few extra days depending on the service provider and location. The added benefit here is it allows you to avoid additional bank fees on either side of the transaction.
How Expensive is a Wire Transfer?
Wire transfers may be a reliable and fast way to send money, but it is often costly and incurs fees on both sides. Depending on whether funds are being transferred within the U.S. or internationally, you may be charged fees for sending, receiving, or both. The Nerd Wallet compiled a list of average fees by financial institution for wire transfers, taking into account both domestic and international fees, which averaged out to between $9 and $25 for domestic and between $10 and $44 for international.
Is Sending or Receiving Money by Wire Transfer Safe?
Wire transfers are usually considered to be safe and reliable. Bank wire transfers require both participants to have a bank account, which can cut down on potential scammers. Money transfers immediately, so the recipient does not have to worry about bounced checks or delayed payments. Banks can catch wire transfer errors, such as insufficient funds or incorrect account numbers, before sending a payment, so there is little risk in accepting a wire transfer into your account.
One downside of sending a wire transfer is you cannot retrieve the money once sent; you cannot stop a wire transfer after you send it. It is important to know how to set up a wire transfer and take the proper steps in ensuring you have the correct information for the recipient.
In terms of speed and reliability, processing payments by wire transfer works well for business-to-business payments. However, it can cost quite a bit of money and can contain a certain amount of risk. That is why it is crucial to pay attention to the bank account information you have when sending a payment since it is not possible to rescind payment.