Wire Transfer - Explained
What is a Wire Transfer?
Written by J. Mance Gordon
Updated at April 19th, 2024
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What is a Wire Transfer?
A wire transfer is a financial transaction that allows individuals transfer funds from one account into another account through electronic communication.
How is a Wire Transfer Used?
For a bank wire transfer, the sender deposits the cash into his bank account, then fills the receiver information that will enable his bank conduct wire transfer. Physical transfer of money is not required in wire transfers, in stead, two banks (one for the sender and the other for the receiver) settle payment electronically using the bank end.
Domestic wire transfer and international wire transfer are the two types of wire transfer. While the former use domestic Automated Clearing Houses (ACH), the latter use foreign processing systems.