Wire Transfer

How wire transfers work

The mechanics:

• Sender's bank debits sender's account.
• Sends payment through Fedwire (US domestic) or SWIFT (international).
• Receiving bank credits recipient's account.
• Same-day for domestic; international varies.
• Irrevocable once sent.

Wire transfers are one of the oldest electronic payment methods.

Wire vs. ACH

Critical comparison:

• Wire — same-day, irrevocable, expensive ($15-50 typical).
• ACH — 1-3 days, revocable, free or cheap.
• Wire for urgent or large transfers.
• ACH for routine, smaller payments.

Most consumers should use ACH except in specific situations.

Common wire use cases

When wire is appropriate:

• Real estate closings — typically required for down payments.
• Large business payments — speed and finality matter.
• International transfers — wire is standard.
• Time-sensitive transfers.
• Brokerage funding — sometimes required for large deposits.

Otherwise, ACH or other rails are typically better.

Wire fees

Typical costs:

• Outgoing domestic — $15-35.
• Incoming domestic — $0-15.
• Outgoing international — $30-50+.
• Incoming international — $10-25.
• Plus FX spread — banks make money on currency conversion.

Some accounts (premium banking, brokerages) include free wires.

Wire security risks

Several concerns:

• Wire fraud — major and growing problem.
• Business email compromise — fraudsters impersonate executives or vendors.
• Real estate wire fraud — closing instructions intercepted.
• Verification by phone — verify wire instructions through known channel.
• Once sent, gone — recovery is rare.

Wire fraud has ruined home purchases and businesses.

International wires

Several specific issues:

• SWIFT network — global messaging system.
• Correspondent banks — multiple intermediaries possible.
• FX conversion — at bank's rate (typically unfavorable).
• Compliance — sanctions and AML checks.
• Speed — minutes to days depending on banks involved.

Alternatives like Wise (formerly TransferWise) can be cheaper.

Information needed

Typical wire details:

• Recipient bank name and address.
• Recipient bank's routing number (US) or SWIFT code (international).
• Recipient account number or IBAN.
• Recipient name and address.
• Amount and currency.
• Memo/reference — sometimes required.

Errors in any field can fail or misroute the wire.

What individuals should know

For consumers:

• Verify wire instructions by phone using known number.
• Use ACH when speed isn't critical.
• Confirm receipt with recipient.
• Save records — wires are major transactions.

For real estate buyers:

• Wire fraud is rampant in real estate.
• Verify with title company by phone before sending.
• Test transfer for very large amounts.
• Be wary of email instruction changes.

Wire transfers are foundational to large-value payment infrastructure. Their irrevocability makes them useful for urgent transactions but creates fraud risk that requires careful verification.