Sending or receiving money through wire transfers might sound a little old fashioned, but it is definitely still one of the fastest methods of a monetary transaction between two parties. A wire transfer provides you the flexibility to send money quickly, ensuring that the transaction is secure. Not only are these transactions quick and safe, but they are also the right tool for immediate monetary needs where you can easily send money with complete reliability. Besides, for significant money transactions such as buying a property, a wire transfer is the most preferable option for the interested parties.
Wire Transfer: The Basics
A wire transfer is an electronic mode of sending and receiving funds where the funds are known to be transferred within a day itself. The traditional form of wire transfer requires the sender to confer data about the bank or credit union receiving the funds with the application of networks such as Fedwire or SWIFT. When it comes to wire transfers, there is a fee requisition for the quick transfer of money, making it a reliable alternative to sending money orders and writing checks.
The term wire transfer is also applied for other various kinds of transactions as well, which makes it important to understand the requirements in case someone asks you to process the transaction via a wire transfer.
The Pace of Wire Transfers
Wire transfers tend to be a useful medium for sending and receiving money, owing to the fact that the money is moved within a day’s time or maximum two days. For instance, wire transfers in the United States proffer same-day transfers if the transaction takes place within the country while the international transfers are known for taking time of two days.
- Cleared Money: Since the funds move at a fast pace, the recipient on the other end does not require to wait for them to get cleared prior to using or claiming the money. Simply put forward, there is generally no hold placed on the funds when the transaction is processed via a wire transfer. This makes the wire transfer a safer option for business owners that want to sell their offerings and services while omitting the check transaction option. Moreover, the check can bounce and it can take many weeks to finally figure out that a payment has gone bad.
- Processing Timeframe: Wires are known for getting completed within a day, based on how early you have filed a request to send money. It might take the bank a few hours to show the funds in the respective account of the recipient. The bank official often needs to complete several tasks to ensure that the funds are available. In case of a hurry, you can simply make a few calls to the bank to utilize the money that you have received via wire transfer.
Bank-to-Bank Wire transfers – The Procedural
If you are new to the concept of the wire transfer, check out these simple steps that will help you in processing a bank-to-bank wire transfer:
- Evaluate your funds and ensure that you have enough funds in your account for completing the transaction without any hassle. Prior to the wire transfer, it is recommended to reconcile your bank account and verify any outstanding deposits or checks that are not highlighting in your account.
- Deduct the net amount of transfer along with any transfer fee from your respective bank balance and then contact your bank, credit union or similar institution.
- Based on the kind of services your prospective institution offers, you might be able to exercise the liberty of accessing the forms online. If not, you will require to take a visit to the local office or call the officials to understand the further proceedings.
- Fill the wire transfer form provided by your bank. You have to ensure filling the mandatory information for both you as a sender, as well as, for the receiver’s bank or credit union. For local banks, you will need to incorporate the ABA number and add the account number of the recipient’s bank.
- Bring and verify any needed information or identification before transferring funds to another account. If you are wiring in person, you will need a state ID for completing the transaction.
- As soon as your wire transfer is completed, the bank will render a confirmation number for your convenience. Also, keep in mind that the wire transfers at the banks take place in the order they are received. Therefore, it might happen that you do not receive the confirmation immediately.
Wiring money through banks and other similar establishments ensure providing a high level of security. Keep the above-stated steps in mind to ensure a safe and reliable wire transfer in the future.