A wire transfer is a great way to send money quickly and safely. It is a fairly simple process, but gathering the information and presenting it in an appropriate format can be difficult.
Understand that you will not be able get your money back if you authorize bank transfers. The money you send will leave your account more or less immediately. You cannot “stop payment” and can only cancel the transfer to get a refund in certain circumstances. You’re taking a chance if you don’t know for sure who will receive the money. 1
The Key Takeaways
- Wire transfers involve the electronic transfer of money from one account into another.
- International wire transfers are possible as well as domestic (within U.S.A.).
- Banks are able to complete domestic wire transfer in as little as 24 hours.
- The banks may charge as much as $45 for a wire transfer.
- You can send money to your recipient in just minutes if you use Western Union or other wire transfer services.
There are many types of wire transfers
Wire transfer is a term that is used often to describe:
- Transferring money from one bank using the traditional banking network
- A payment made electronically using a service such as Western Union that could use someone’s bank account
The process you choose will determine the exact steps, but “wire transfer”, as described here, is a transfer from bank to bank.
How to Set up a Wire transfer
Verify all details of the wire transfer before you start. You should check with your service provider to see if there are any limits. Some banks require that you have been a client for a specified period of time in order to make a transfer. You may need to fill in a form at the bank or start the process on-line.
You can ask the recipient for the following information to send money via a traditional wire transfer:
- Name of the bank to which money will be sent
- 3 Recipient’s bank’s American Bankers Association routing number
- The account number of the payee at the bank
- Please provide any additional information (such as delivery instructions).
After submitting your request, contact your bank to ensure they have all the necessary information.
If you receive a wire transfer into your account, you may have to pay for it. The cost of wire transfers can be as high as $45 or $30 for international transfers.
If you pay with a credit card your card issuer could charge additional fees because they will treat the wire transfer as a advance.
Note:
Never send money to someone based on information in an email. Call the recipient to confirm the instructions if someone sends them electronically. It’s especially important to do this if you will be wiring large amounts. Verify the destination of money sent by your title company for a deposit.
How to Receive Money via Wire
You will need to give your bank account details to the sender of money in order to receive it. To ensure you are using the correct numbers, ask your bank to provide incoming wire instructions.
It is important to note that the ABA code you usually use –the one that appears on your checks, or that you use when you deposit directly–may no longer work for international transfers. This may be because international wires require a Swift Code.
Talk to customer service if you are unsure if the sets of numbers and instructions you’re using are correct.
Note:
It is often cheaper to receive a transfer than it is to send one.
Waiting for Credit
The recipient bank may have a queue of incoming bank wires, so it can take time to credit the a data-component=”link” data-ordinal=”1″ data source=”inlineLink” and data type=”internalLink”. It can take a while for the receiving bank to credit , because they have a lot of bank wires waiting.
It is not uncommon for this to happen, especially with large transfers. You may need to call a few times before you can get in touch with someone who can confirm the transfer. Other times, it is just a case of waiting. Your bank may be able to complete the bank wire in 24-48 hours depending on when you give them instructions. 8
You can check if you have received a wire transfer if you are the recipient. Speak to someone at your bank about whether the funds “cleared” and any concerns you may have.
Other Ways to Move Money
Wire transfers are not always an option. There are many other ways of sending or receiving funds.
Money Transfer Services
Western Union and MoneyGram money transfers are often called “wires” and some transfers are instant. Senders can walk in with cash and receive money from another retailer within minutes. The transfer will take several days if you fund it from your bank. You will be charged extra fees if you use your credit cards to transfer money.
Cashier’s checks and money orders
Cashier’s Checks can be used to send money quickly and are as safe as wire transfers. They also cost less. When the check is printed, the bank or credit union will take the money from the customer’s checking account.
Money Orders, which are comparable to cashier’s check, are inexpensive but not as secure. You can buy them at convenience stores, banks, post offices, credit unions and other financial institutions. Money orders are not ideal for large purchases because the maximum limit varies by issuer and would require multiple money orders to be purchased.
Other Options
You can send money using several online services or apps by tapping your bank account in an indirect way. Venmo and PayPal are just a few of the services that can complete your electronic transfers. Check with the service provider to see what risks you are taking. This is especially important if you’re paying someone you don’t know. The many ways to send money are easy but require trust on both sides.
FAQs (Frequently Asked Questions)
How can I wire money into a bank account?
You’ll need the information of the person receiving the money in order to wire the funds. For wire transfers, you’ll need to know the recipient’s name and surname, their contact information, their account number and routing number. You can ask the recipient to verify the information with their credit union or bank to ensure the money goes to the correct place. Then, you’ll visit the local branch of your bank, give the details and wire the money.
How can you get your money back after a wire transfer has been made?
You are not guaranteed to be able get your money back after you have initiated a wire. Contacting your bank or credit-union before the recipient institution approves the transfer is the best way to increase your chances of getting money back. Tell your bank about the fraud, and explain what happened. You should also notify your local police department, the consumer protection office in your state, and the FTC if you have been scammed.
