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When you need to send or receive money fast, wire transfers are the simplest tools for the job. Wire transfers are reliable, immediate and safe. For crucial transactions like buying a home wire transfers or cashier checks are your only options. Have you ever wondered why? The short answer is that the funds are available to the recipient more or less immediately. A wire transfer is usually a fast way to move money electronically to another person.
Wire Transfers- The important things you should know
It is an electronic transfer of money. Interestingly, a traditional wire transfer goes from one bank or credit union top another by using a network such as SWIFT. However, you should note that the term wire transfer is also used for other types of transfers. Usually, a bank wire comprises of instructions about the recipient of the money. It also includes the bank account depending on the service. A bank wire also comprises of instructions about how the recipient should get the money. On the contrary, nonbank transfers might not require a bank account, but they will need the recipient’s name.
What are the types of wires?
There are usually two main types of wire transfers. One is the domestic wire transfer and the other is the international wire transfer. The cost and time of delivery also vary for each. In case you are sending money overseas through your bank. You will generally use a wire transfer. Notably, banks can transfer amounts in thousands of dollars and send money in a foreign currency.
How long does a wired bank transfer take?
If you think that your money goes directly from one bank to another, then you are wrong. A real-time processing system clears the payment instantaneously. In case of domestic wire transfers, money usually gets processed the same day the wire goes out which is typically within a few hours. On the other hand, international wire transfers involve the U.S clearing house and needs at least one foreign nation’s processing system. This procedure can take several days.
Cleared funds
As the money moves rapidly, the recipient should not have to wait for funds to clear before claiming or using the money. In simpler words, there is usually no hold placed on money received via wire transfer. It is interesting here to note that for anyone selling services or merchandise, a wire is safer than a check. It is because checks have a high probability of bouncing and have a longer duration of processing time.
How safe is a wire transfer?
A wire transfer is quite secure and can’t be canceled once it’s been sent. Hence, it is crucial to ensure that you know the person you are sending money to. Nowadays, there are various instances where con artists might say you have won a lottery you never signed up for and ask you to wire money to pay supposed fees. If you fall for a trick like this, you can’t claim your money back. However, there is an exception if you make an international transfer and cancel it within an hour; then there are higher chances that you will get your money back. Wire transfers are the ideal ways through which you can money to someone who is in dire need of it.
Receiving a wire through a bank is also safe. The payments are more certain because banks only wire money out if the sender has the available funds. Once the money arrives via wires, it should be yours within one business day. But you need to ensure that you have received a real wire transfer. Click here to know more about the intricacies of a wire transfer.
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