What Is a Wire Transfer?

Key Takeaways

A wire transfer is an electronic transfer of funds from one financial institution to another.
You can send or receive wire transfers domestically and internationally, though you may incur fees up to $50.
Wire transfers are a safe and fast option for sending larger sums of money. Just be mindful of scammers.

Consumers have lots of ways to send or receive money. You can write a check, load funds onto a prepaid card or use a peer-to-peer app, to name just three examples. If you want to transfer a large sum, a wire transfer could be a smart option.

A wire transfer can be fast, secure and convenient, but it’s usually not free. Here’s more about how wire transfers work as well as how to keep them safe.

What Is a Wire Transfer?

The term “wire transfer” can be used in more than one way. In the broadest sense, any electronic transfer of funds might be described as a wire transfer. More specifically, a wire transfer is an electronic transfer of funds from a bank or credit union to another bank or credit union.

This definition is why a wire transfer is sometimes called a “bank wire.” International wire transfers are called “remittances.” Wire transfers can be outgoing if you are sending funds and incoming if you are receiving funds.

What Are the Types of Wire Transfers?

Domestic Wire Transfers

A domestic wire transfer is the electronic transfer of funds between accounts within the same country. A wire sent from a bank in Ohio to one in Virginia is an example of this type of transfer.

International Wire Transfers

An international wire transfer moves money electronically between accounts in different countries. If you send a wire transfer from your bank in the U.S. to a bank in Japan, for example, it is an international wire transfer.

How Long Does a Wire Transfer Take?

A wire transfer can be completed within a few minutes or take several days, depending on the type of transfer.

Domestic transfers are generally faster than remittances. Remittances can be affected by bank holidays, delays at intermediary banks that assist in the funds transfer, or slow-paying countries, among other factors.

However, once the transfer shows up in a bank account, the funds should be available quickly, if not immediately, according to Western Union, the money transfer company.

How Much Does a Wire Transfer Cost?

Wire transfers typically involve fees that vary from free to as much as $50, depending on:

Whether the transfer is domestic or international
Whether the transfer is incoming or outgoing
Whether the funds are U.S. dollars or foreign currency
Whether you set up the transfer online or at a branch location
How much money you are sending or receiving
How much your transfer provider charges

Fees can make wire transfers an expensive way to move money, though amounts vary by financial institution and type of transfer. Here is a look at the standard wire transfer fees from the five biggest U.S. banks to give you an idea of what to expect.

Why Should You Use a Wire Transfer?

There are three main reasons to use a wire transfer:

Speed. Wire transfers are usually faster than paper checks, and the recipient can use the funds quickly.

Safety. Compared with cash, a wire transfer is a more secure way to send money.

Necessity. You might be required to use a wire transfer, particularly if you have to move a large sum of money. For example, when you buy a home, you might need to wire your down payment and closing costs to your escrow company or settlement agent before closing.

What Are the Risks of Wire Transfers?

Wire transfers are generally considered a safe way to move money between bank accounts, as long as you only send money to people you know and trust. Still, scammers can pressure you to wire money to them because it’s like sending cash: Once it’s gone, you usually won’t get it back.

Never wire money to someone you haven’t met in person, and do not send money to someone who pressures you for an immediate payment. Do not wire money to a government agency, such as the IRS, or to a well-known company, no matter the reason.

A wire transfer can be difficult or impossible to reverse, even in a case of mistakes or fraud. That’s why you should be very certain that you know the identity of the person you’re sending your money to before you authorize a wire transfer.

According to the Office of Attorney General of Texas, a scammer may:

Ask you to wire money unexpectedly
Ask for a confirmation code before withdrawing funds
Send you a check and ask you to cash it and send back the money
Request that you send money overseas

If you think you wired money to a scammer, contact the transfer provider or financial institution to ask about getting your money back. Report the scam to the Federal Trade Commission at ReportFraud.ftc.gov.

Wire Transfers vs. Other Electronic Transfers

A wire transfer isn’t the only way to send money. Other options include:

ACH transfers. The Automated Clearing House network is a system that banks use to process, or “clear,” paper checks and certain electronic banking transactions. ACH transfers are slower than wire transfers but generally cheaper and easier to reverse in cases of a mistake or fraud.
Nonbank transfers. If you don’t have a bank account or you have an account but don’t want to use it, you can arrange a wire transfer through a nonbank wire transfer provider, such as Western Union. Transfers can be arranged online, by phone, in person or with a mobile app. Nonbank wire transfers can be pricey but offer convenience if a bank wire transfer isn’t a good option for you.
Peer-to-peer transfers. P2P payments allow you to use a mobile app or website to send money from your bank account to another person, identified by an email address. Services like Zelle, Venmo, Cash App and PayPal are examples of P2P apps you can use for this type of transfer.