You’ve probably heard the term wire transfer a thousand times, but do you know what it is and how it works? Wire transfer was first introduced in 1872, but it only became popular with the rise of technology 10 years ago. After most banks implemented online banking, it became easier and more reliable than other methods of money transfer. However, banks aren’t the only financial institutions that offer wire transfers. Nowadays, many non-bank financial companies offer this service. Wire transfer is a service that allows you to send or receive money quickly, but there’s more to it.
Here’s everything you need to know about it.
What is a Wire transfer?
Wire transfer is an electronic money transfer between individuals or companies. It allows anyone to transfer money safely to another person or entity without having to see each other. There’s no physical money involved in the process, which makes it more secure than traditional ways. An individual wanting to send money can easily do it through their phone, no matter where they are. Many people highly prefer this service because it allows you to send or receive money within days. However, wire transfer has a cost. The sender will pay a certain fee, decided by the bank or the company, before transferring the money. The fees vary from one financial institution to another and depending on the type of wire transfer.
Types of Wire transfer
There are two types of transfers: domestic and international. Each type has different costs and delivery times. The fees for domestic transfers are relatively low compared to international wire transfers. The same applies to the delivery time. The receiver can get the money on the same day if it’s a domestic wire transfer, but it usually takes a couple of days for international transfers to go through. Although many companies offer cheaper and faster wire transfers than banks and other known financial institutions, they’re not entirely secure. The experts at Routefusion claim that there are a few entities that offer fast and cheap wire transfers, but before dealing with them, you must ensure that they’re secured. Before sending money to anyone through an unknown source, read as many reviews as possible from previous users. Additionally, check their site to know what type of protection they offer. That way, you’ll guarantee that the money you’re transferring will be delivered without any trouble within the agreed duration.
How it Works
As an individual or a company, choose a bank or financial institution, and request to send a specific amount of money. If you’re dealing with a bank, you must provide them with the receiver’s account number and pay the amount upfront – the recipient’s bank pays the money to the recipient. Usually, the banks or companies involved with the transfer settle the payment immediately after the deposit was made. If you’re dealing with a non-bank institution, you will not need to provide an account number.
Wire transfer has made it easier for people to send or receive money, regardless of their location, and as long as you know the person receiving the money, it should be safe. However, with the rise of security issues and bank fraud cases, it’s best to do some research to make sure you choose a reliable financial institution to avoid such risks. Choose an institution with high-security measures and require the receiver to verify their identity before withdrawing the money. That way, you can ensure that your money will be safely transferred.
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