Bank Wire Transfer

Sending money by bank wire transfer is a popular way of getting money from one bank account to another. This can be accounts at the same bank, same country, ie domestic wire transfer, or different country as an international bank wire transfer. The end result is all the same and you have cleared funds in the recipients bank account. A bank wire transfer is one of the most efficient ways to get money from one account to another, short or going into the bank and completing withdrawal and deposit forms for each side of the transaction.

This ease of completion does come at a cost though and you will usually be charged for the wire transfer. To avoid any nasty shocks, ensure you understand all the costs beforehand. Make sure to ask about the timeframe for the transfer if you have to have the funds in the recipient’s accounts by a certain time. Often there are cutoff times to meet and it would be a waste to pay the fees and then find out the funds didn’t arrive in time because you didn’t ask about the time cutoffs. Of course the bank employee should tell you all of this beforehand, however, sometimes it is overlooked because they assume you know.

You will be asked to provide identification

International wire transfers may take a bit longer, although, you still should be able to get them completed within 24 hours these days. With automated clearing houses operating between banks and countries the process is much easier. The only downside is the ease of use also increases the criminal element using the services. Local laws in most developed countries now include anti-money laundering or know your customer laws. You will be asked to provide identification and perhaps a few other things. Nothing more onerous than if you were carrying large amounts of cash in person between countries.

Because the internet has made shopping outside your local area much easier, bank wire transfers are a good alternative to using a credit card. Some sellers prefer the transfer because they are not subjecting themselves to potential fraud such as the case can be with credit cards. They received cleared funds and don’t have to be concerned with having sent the good only to find a few weeks later that the credit card was stolen and they have been hit with a chargeback on their merchant account.