Wire transfers were first introduced to us in 1973 when the Society for Worldwide Interbank Financial Communications (SWIFT) was established. For about 50 years now it has allowed to efficiently transmit funds between financial institutions. Wire transfers’ big advantage is their quick speed. However, this comes at the price of a wire transfer fee. If you are unaware of the subject, it might be pretty easy for you to lose money on the transaction or overpay for wire transfer services. This is what you need about wire transfer fees, looking for the best deals, choosing the best transfer options and more.
What is a wire transfer?
A wire transfer is a way to electronically transfer funds from one individual to another or from one institution to another. However, wire transfers are different from Automated Clearing House (ACH) transfer or online transfers through platforms like PayPal. Wire transfers use a network of agencies and financial institutions to allow the transaction and also make it quicker.
Wire transfers are usually time-essential. They allow the money to get from point A (sender) to point B (recipient) quicker than any other money transferring method does.
How much is a wire transfer?
Wire transfer fees are usually different in different banks, they also vary depending on the kind of transfer you need to make (international transfers are usually more expensive). Keep in mind that there also will be fees for both sender and receiver. The cost of sending a wire transfer within the USA will normally be around $30 or even less, receiving will be around $15. On the other hand, international wire transfer fees can go up to $50. If you don’t want to pay that much money for a single transaction, there are always alternatives such as Internet payment systems like Venmo and PayPal, interbank transfers, or transfers via SMS or digital wallets. They are usually cheaper but not always as reliable and fast.
How to wire money?
Making a wire transfer is pretty easy and won’t take you a lot of money. However, before making the transfer itself, you will need to find out some essential information, as it’s impossible to transfer money without knowing the recipient’s full name, account number, mailing address, bank routing number or bank identification code (BIC). Also, determine the currency you will be using for transfers. If you have all the necessary information, you can just contact the bank online or by phone to make a wire transfer, however, some banks may require you to fill out some forms in person. If you don’t want to use bank services, companies like Western Union and MoneyGram also allow you to transfer money in a matter of hours.
Overall, the wire transfers will be your best option only if the timing is essential and you need your recipient to get the money immediately, otherwise, it might be a better idea to transfer money using one of the online services as their fees are usually much lower.