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- There are two ways to wire money: through a bank or through a wire service.
- A wire is an instant money transfer, meaning you won't be able to cancel the payment.
- Research the fees associated with domestic and international wire transfers before initiating one.
For sending money in a pinch, a wire service can be a good solution. But before you turn to your bank or a wire transfer service like Western Union, it's important to understand how the transaction happens and what fees might apply, and even consider whether there is a more appropriate method to use.
What is a wire transfer?
A wire transfer is a way to send money electronically between bank accounts. Both the sender and the recipient must provide routing and bank account numbers.
While standard ACH transfers may take a few days to process, wire transfers occur immediately, which means the money leaves your account right away.
Since that's the case, there's no real way to cancel a wire transfer, and you won't be able to get a refund. Make sure you absolutely want to send the money — and that you know who the money is going to — before setting up a wire transfer.
How wire transfers work
The process of initiating a wire transfer
Wire transfers typically come in two forms: a transfer between banks or through a money service, like Western Union. Before picking which to use, do some research.
In general, a bank account wire transfer tends to cost less than using a service like Western Union. You can usually send money directly from a checking account, or you can sometimes use a credit card. When you use a credit card, this is often treated as a cash advance, which means it comes with some fees from the credit card issuer.
Depending on where you bank, using a Western Union-type service to wire money may be more convenient since there are physical stores, as well as locations in other places, like many grocery and convenience stores, and it tends to keep longer hours.
Note that Western Union provides both money orders and wire transfers, which are not the same thing. A wire is an immediate electronic transaction, while a money order is like a more secure version of a paper check.
Information required for sending and receiving
You can call or visit the website of your wiring service to determine the best way to begin the transaction.
If you need to fill in some forms (very likely), you might be able to get that started at home before actually heading anywhere. In some cases (like for smaller wire amounts) you might be able to complete the entire transaction online without ever leaving your house.
Exactly what information you'll need will depend on the service you decide to go with. In general, you'll want to gather:
- the name of the bank where the money will be received
- the recipient's ABA routing number and bank account number for domestic wires
- the recipient's SWIFT/BIC code and account number for international wires
- the currency to be delivered, if you're sending money internationally
- your bank account number
- any further instructions that might be necessary, like anything pertinent to the delivery of the funds
Your bank will also likely provide you with a wire instruction sheet if you need more information or have questions about any details.
Fees associated with wire transfers
Whether you go with a credit card or checking account, wire transfers almost always cost money (on top of any credit card transaction fees), so be sure to ask about any fees you might be charged before completing the process. Doing this research might also help you determine which service is best to use.
Wire transfer fees — charged to the sender — generally range between $15 and $30 for outgoing transfers to a bank within the U.S. The costs of international wire transfers are usually a bit more costly, ranging from $35 to $50.
Safety and security
Wire transfers are a secure way to transfer money to friends and family. It's wise to follow up with the company you used to make sure everything went through as planned.
If you're purchasing something through a company that asks you to wire money as a way to make a payment, be wary.
Remember that the money you wire typically comes out of your account immediately, and there isn't really a way to cancel and it can be hard to argue for your money to get returned. It's best to stick to wiring money only to people you know and trust.
Alternatives to wire transfers
ACH transfers
ACH payments use the Automated Clearinghouse Network to securely send money between bank accounts. Companies pay employees through ACH payments in the form of direct deposit. ACH transfers are typically cheaper to set up than wire transfers but can take several days to clear.
Peer-to-peer payment apps
P2P payment apps, such as Venmo and Cash App, use ACH payments to transfer money between bank accounts. If you're paying a friend or family member your share of the dinner bill, you likely won't be charged a fee to use the service. If you're purchasing an item or paying for a service, such as a haircut, you may be charged a flat fee or percentage of the transfer amount. Typically the funds will take several days to transfer, whereas a wire can clear within 24 hours.
Checks and money orders
A money order is more secure than a personal check and can be purchased at your bank or credit union with cash. If you're sending money to someone who you have never met in person or don't know well, a money order is likely a more secure option than a wire transfer, in part because it can be canceled before the recipient deposits it. Money orders also come with a lower fee, but a maximum limit of $1,000.
Wiring money FAQs
A wire transfer is a secure, electronic transfer of funds from one bank account to another. Wire transfers can occur between two U.S.-based financial institutions or between a U.S. bank and an international bank.
You will need to provide the recipient's name, the name of their bank, their routing number if the wire is domestic, their SWIFT/BIC number if the wire is international, and their account number.
If you're wiring money to someone in the U.S., it may take less than 24 hours. When comparing wire transfers versus. ACH transfers, keep in mind ACH transfers usually take a few business days to process.
Fees for wire transfers typically range from $15 to $30 for domestic transfers and $35 to $50 for international transfers. The sender pays the fee.
Wire transfers are safe and secure. It's always good practice to review the recipient's information before initiating a wire transfer, and only send money to people you trust because it's difficult to reverse or cancel a transfer.
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