Imagine you need to pay money to a title company to wrap up a home purchase. Or perhaps you need to send cash to your grandmother in Mexico. In both of these cases, and many others, you need to send a sum of money between bank accounts.
Services like Cash App, Zelle and Venmo have made it easier to do peer-to-peer transfers up to certain limits, and that usually works for most situations. However, if you have to send a larger sum of money or the recipient doesn’t have access to these services, you might use a wire transfer.
What Is a Wire Transfer?
A wire transfer enables you to electronically send money from one bank account to another. Wire transfers can be either domestic or international.
A domestic wire transfer could involve two banks in the U.S., while an international wire transfer could involve one bank in the U.S. and another bank in Canada.
The money goes directly from an account at one bank, credit union or financial services company to another. You may be charged a fee to carry out a wire transfer. Keep reading to learn the steps to follow to wire money.
[See: Best High-Yield Savings Accounts]
How to Do a Wire Transfer
Making a wire transfer involves several steps. If you have any questions about your transfer, contact the bank, credit union or financial services company you’re using for the transaction.
1. Choose the Account
The first step when doing a wire transfer is deciding which account you’ll use to send the money. You might pick the bank where your main checking account is, for instance, or a financial services provider (such as Western Union or a similar remittance service) that offers low- or no-cost transfers.
[Read: Best Checking Accounts.]
2. Review the Fees
Be sure you know how much the fee is before executing a wire transfer, and keep in mind that the fee for an international transfer may be higher than the fee for a domestic transfer. Typically, a wire transfer fee ranges from $0 to $50.
In the U.S., federal law does not put a cap on wire transfer fees. Rather, financial institutions set their own fees according to state laws.
Make sure you’ve given yourself enough time for the transfer to go through. Domestic transfers are usually completed on the same day, while international transfers can take up to five days. Also confirm with your financial institution what its transfer maximum is.
3. Assemble the Recipient’s Information
To send a wire transfer, you’ll need to gather certain pieces of information. Depending on the financial institutions that are part of the transfer and whether it’s a domestic or international transfer, this information may include:
— How much money you plan to send.
— The name of the recipient.
— The address of the recipient.
— The phone number of the recipient.
— The bank account number for the recipient.
— The bank routing number for the recipient.
— The address of the recipient’s financial institution.
In addition, you may need to confirm your identity with a driver’s license or government-issued ID card.
4. Decide Where to Do the Transfer
You typically can do a wire transfer at a financial institution’s branch or office, or you can do it online or through an app. Wiring money from bank to bank is usually safer, though you may get higher transfer fees depending on the policies of the banks involved. Make sure to check the fees associated with wire transfers for both the sending and receiving institution.
Online wire transfer services provide more accessibility and convenience than the bank-to-bank alternative. While these services make the transaction easier, they may have specific instructions on how to do the wire transfer and may need additional information. If you need help with the transfer, consider doing it in person.
[Read: Best Online Banks.]
5. Transfer the Money
At this point, it’s time to send the money.
Of course, you’ll need to make sure you have enough money in your account to cover the transfer. And you’ll need to figure out what type of currency to send if you’re making an international transfer. For instance, Bank of America recommends sending only U.S. dollars in a wire transfer to someone in countries including Colombia, Nigeria and Venezuela.
Also, you’ll want to alert the recipient that the money is on the way and track the progress of the wire transfer.
Make sure you keep the paper or electronic receipt confirming the transfer in case a problem arises with the transaction.
6. Look Out for Wire Transfer Scams
Unfortunately, scammers use wire transfers as a vehicle for stealing money.
For example, a scammer may send a phony request by email seeking money to close the purchase of a home. Before wiring money to anyone, double-check that it’s being routed to the right person or business and that all of the details (such as the recipient’s bank account number) are correct.
You could lose thousands of dollars in a wire transfer scam.
“Scammers pressure you to wire money to them because it’s easy to take your money and disappear,” the Federal Trade Commission warns. “Wiring money is like sending cash — once it’s gone, you probably can’t get it back. Never wire money to a stranger — no matter the reason they give.”
If you believe you’ve been the victim of a wire transfer scam, contact your financial institution right away. In addition, report the incident to the FTC.
How Long Does It Take to Wire Money?
International wire transfers generally take one to five days, while a domestic transfer will likely be processed within 24 hours. The times may change depending on factors like federal regulations or cut-off times.
Some banks or nonbank services offer expedited transfers for an additional fee, but you may have to meet certain conditions in order to take advantage. If your wire transfer is delayed for longer than expected, reach out to the bank or service and ask if they can provide you with an update.
More from U.S. News
How to Cash a Check Without a Bank Account
How to Send Money Internationally
Should I Use a Wire Transfer or Cashier’s Check for Closing?
How to Wire Money originally appeared on usnews.com
Update 12/10/24: This story was previously published at an earlier date and has been updated with new information.
