A wire transfer is a way to send funds electronically from one bank to another, domestically or internationally. Some currency exchange providers accept wire transfers as a means of payment.
A wire transfer allows a bank user to send money directly from their bank account to another bank account, either domestically or internationally. Note that international wire transfers will be exchanged at the bank’s exchange rates, which are typically not competitive.
Unlike clearing house networks, who act as middlemen, a bank transfer is made directly between banks. This does mean quicker transfers, but at a higher cost, with typical wire transfers costing between $25 USD and $40 USD. Domestic wire transfers are typically completed in a business day, whereas international transfers can take a few days.
Due to the cost involved, if you’re using a wire transfer to fund currency exchange, an ACH payment or paying by debit or credit card may be more cost effective. A wire transfer doesn’t typically have as much security as an ACH transfer, and they are not reversible if you make an error. Wire transfers are best used for when you need to send money urgently or for important reasons.
Wire Transfer — Related terms
A wire transfer is also known as a bank wire, telegraphic transfer, and in some cases, a bank transfer.
Money Transfer Glossary
When it comes to exchanging money, paying for your transfer, understanding exchange rates and more, it’s important to understand what all the details mean. But don't worry. We’ve got you covered with our complete Monito glossary and guide to the most frequent terms you’ll come across when you send or receive money internationally.
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