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Glossary/Wire Transfer

Wire Transfer

A direct, immediate bank-to-bank transfer typically used for large or urgent payments.

What is Wire Transfer?

A wire transfer is a direct bank-to-bank transfer of funds, typically same-day or immediate, used for urgent or high-value payments. Domestic wires (Fedwire in the US) usually complete within hours; international wires (SWIFT) may take 1-5 days depending on correspondent banks. Wire transfers are irrevocable once completed, require complete banking details, and carry higher fees ($15-$50 domestic, $35-$65 international) than other methods.

Why It Matters

Wires are essential for large, time-sensitive transactions where finality matters: real estate closings, securities settlements, large vendor payments. The high fees make them impractical for routine payments, but when you need guaranteed same-day delivery of significant funds, wires remain the standard. International wires are often the only option for cross-border B2B payments.

Frequently Asked Questions

Use wires for urgent, large, or international payments where same-day finality is required. Use ACH for routine payments where 2-3 days is acceptable and cost matters.

Wires are nearly irrevocable once completed. You'd need the recipient's cooperation to return funds. This finality is both a feature (no return risk) and risk (fraud vulnerability).

Recipient bank name, routing/SWIFT code, account number, recipient name, and your account details. For international wires, you may need intermediary bank information.

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