What Are Wire Transfers?

The earliest wire transfers were done over the telegraph wires, hence the term wire transfer. To send money to people in distant places, one would go to a telegraph office and pay the money. The telegraph office would send a coded message to another telegraph office near the destined location authorizing the release of funds to the recipient. 

This is not the case anymore. Wire transfers now describe the electronic transfers of money. Banks and non-bank money transfer providers offer wire transfers. 

Bank wire transfers occur via networks such as Fedwire or SWIFT (Society for Worldwide Interbank Financial Telecommunication). Most international transfers happen through SWIFT. 

SWIFT, founded in 1974 is a global messaging network used by banks and financial institutions to exchange data for the purpose of money transfers. The information sent through the SWIFT network is protected through encryption.

How to use Wire Transfers

1. Log into your Bank online account: find “Pay & Transfer” or “Transfer Money” options, or contact your bank assistant for help.

2. Gather the recipient’s information: Confirm that the recipient’s information (such as full name, contact information, routing number, etc.) is correct. For international wire transfers, you may also need to gather the recipient’s SWIFT/BIC.

3. Fill out the wire transfer form: Carefully fill out the wire transfer form with the recipient’s information. Enter the amount you are sending in the correct currency and read over the wire transfer’s fine print.

4. Finalize the transfer: Confirm that the information you are providing is correct and pay any applicable transfer processing fee. There may be additional fees or transfer time for international wire transfers.

5. Save your confirmation: Be sure to save any receipt or confirmation you receive after submitting your wire transfer request for your records. These receipts may contain important information about your transfer, such as the transaction number, total amounts wired, and more.

How long does a wire transfer take?

Domestic wire transfers are often processed within 24 hours while international wire transfers can take between 1-5 business days. Wire transfer times may also vary depending on designated cut-off times, federal regulations, as well as weekends and bank holidays.

Since wire transfers do not require bank account holds, they may be completed quickly, but this can vary depending on processing and cut-off times. Cut-off times are designated by banks, credit unions, and wire transfer services so be sure to confirm this information when processing a transfer that is timely or urgent. If you are concerned with any delays (as a sender or recipient) you may be able to reach out to the bank or transfer service to see if they are able to trace the wire to find any updates on processing time.