Personal Finance | Money
The Future of Transferring Money
When you need to move money swiftly & securely, a wire transfer will be an effective option.
There are several alternatives for sending money such as checks, mobile applications, & electronic transfers for different types of needs, but when speed and simplicity are top considerations, wire transfers may be a good option.
A wire transfer is a method of transferring money electronically between two banks, a standard money wire goes from one bank to another over networks such as the Society for Worldwide Interbank Financial Telecommunication (SWIFT) or Fedwire.
In this post, we will go over 8 things you should know before using a wire transfer.
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#1: The Concept Of Wire Transfer
A wire transfer is an electronic transaction that you may start with your bank or non-bank transfer service, like Western Union.
When you wire money, you are enabling the bank or transfer provider to move funds from your account to someone else over an electronic payment network, this means you can send money to friends and family, even if they are in different countries from the comfort of your own home.
It also has various benefits:
· Quick procedure
· Funds are available once the process is complete
· More reliable than checks
“Wire transfer is one of the most popular methods of sending money over the world.”
#2: Cases That Require A Wire Transfer
A wire transfer may be your sole choice for large transactions.
For example, if you are buying real estate, your settlement agent may ask you to utilize a wire transfer to pay your down payment and closing charges, if you pay your suppliers, contractors, and staff, or even send money to your family overseas, wire transfer still the best and only alternative for you.
Wire transfers are usable for both local & international use, they are also famous for international transfers because of the ease of exchange for foreign currency if necessary.
They are also an excellent choice for:
• Pushing through a transfer.
• Moving a large amount of money.
• Paying bills, sending money to family members, or for real estate transactions.
#3: Requirement Information For A Wire Transfer
Whether you are making an online wire transfer through a bank, or mobile payment service, you must have the correct information to send money reliably.
You will need :
· The sender’s full name, bank account & contact information
· The sender’s valid government-issued photo ID or driver’s license
· The recipient’s bank account, full name & contact information
· The recipient’s ABA routing number
"Funds are irreversible, so double-check the recipient’s bank account number & contact information when a wire transfer.”
#4: How To Set Up A Wire Transfer?
When you send a wire transfer, you will provide your bank with information about how much you want to transfer and where you want the money to go, once the bank executes the transfer, the money transfer fast.
Check with your service provider for restrictions and keep in mind, some banks may require you to be a customer for a particular period before you can make a wire transfer.
You may be required to fill out a form at the bank, you may have to pay a fee for the service, or even if you receive a bank transfer into your account.
#5: How To Send Wire Money?
There are two ways to wire money:
1.Bank-To-Bank Wire Transactions
Traditionally, you will need to provide the following information:
· the recipient’s full name
· contact information
· bank account details such as routing & transfer numbers.
Transfer costs vary based on your bank or credit union, it can usually range between $0-$50.
International bank transactions may require more information, it also will take a few days longer to complete & will require a higher wire transfer fee.
2. Wire Transfer Services
If you are using a wire transfer service, you must contact the provider to discover how their wire transfer works, you should also submit the recipient’s full contact information & bank account information to begin the transfer.
Wire transfer services normally require you to deposit the cash in person when completing the request form, transfer costs for wire transfers may vary depending on the outgoing dollar amount, location, & other factors.
If you discover a problem after initiating a transfer, such as an inaccurate dollar amount or bank account number, contact your bank, credit union, or wire transfer provider immediately.
#6: How Long Does It Take?
Transfers usually happen quickly.
Since wire transfers do not require bank account holds, they may be handled fast, local wire transfers are frequently executed within 24 hours, while international wire transfers might take 1–5 business days.
Wire transfer timings may also vary based on authorized cut-off periods, federal laws, weekends, & bank holidays.
#7: How Much Does It Cost?
Unlike other electronic payments, a transfer fee can range from $15 to $50.
The charge is determined by:
• The bank
• Whether the wire is outgoing or incoming
• Whether the wire is local or international
• The amount of the transfer
#8: How Do you Wire Money To A Bank Account?
To transfer money to a bank account, you will need information from the person who will receive the funds.
You will need:
• The recipient’s first & last name
• Contact information
• Account number
• Routing number for wire transfers.
Ask the recipient to confirm the details with his bank or credit union, so the funds are routed to the right place, then visit your local bank office, submit the details, & wire the funds.
Conclusion
Wire transfers are the most used in the United States of America because of the ease of conversion, & the accessibility of cash on the next business day or even the same day in many cases.
A wire transfer is irrevocable, or it can be anonymous, so never send funds to anyone you do not know well.
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