Also called: Bank wire
What a wire transfer is
A wire transfer is an electronic payment from one bank account to another. The sender gives their bank the recipient’s name, account number, and bank details. For a US domestic wire, those details include a routing number. The sending bank verifies the payment and sends instructions through a network such as Fedwire.
International wires can pass through intermediary banks before reaching the recipient’s bank. SWIFT carries payment instructions between financial institutions; it is not the system that itself moves the funds. Banks use wires for supplier payments, large contracts, and other transactions where speed and certainty matter.
A wire’s speed does not make it easy to reverse, verify the recipient details before you send.
How the transfer moves
A domestic wire sent before your bank’s cutoff generally settles the same business day. A missed cutoff, weekend, or bank holiday can push processing to the next business day. Confirm the cutoff directly in your bank’s wire instructions before scheduling a time-sensitive payment.
International wires typically take 1 to 3 business days, and intermediary reviews or time-zone differences can extend delivery. Banks process wires individually rather than grouping them into batches. Once a wire is completed, it is typically difficult to reverse, so correcting a wrong account number can be difficult.
What it means for your costs and cash flow
Wire fees are bank charges, not card-processing fees. The sending bank charges for the transfer, and international wires can include charges from intermediary or recipient banks. Those deductions are not always visible upfront, so the recipient might receive less than the amount you sent.
Currency conversion adds another cost: the exchange rate can include a markup, and the converted amount can change with the rate used for the transaction. International transfers can also take several business days, tying up cash while the payment is in transit. A wire does not reduce your card-processing costs or appear as a card transaction.
What to check before sending
Because completed wires are difficult to recover, verify the recipient’s bank details and payment amount before authorizing the transfer. For a changed supplier account, confirm the new details using a trusted phone number already on file, not contact information supplied with the change request.
For an international payment, identify who pays transfer charges and ask whether intermediary fees will reduce the amount delivered. Record the transfer confirmation and reconcile the debit against your bank statement and the supplier’s invoice. These checks help separate bank-transfer costs from your card fees.
What you can actually change
- Verify bank details. Confirm the recipient’s account information through a trusted contact method, especially after a payment-instruction change. A completed wire is difficult to reverse.
- Check the cutoff. Find your bank’s domestic or international wire cutoff before relying on same-day processing. Weekends, holidays, and intermediary reviews can delay delivery.
- Confirm total charges. Before sending internationally, ask which banks charge fees and whether those fees reduce the amount the recipient receives. Compare the exchange rate used with the rate quoted.
- Reconcile the payment. Match the bank debit and transfer confirmation to the invoice, then confirm the supplier received the expected amount. Keep wire costs separate from card-processing expenses.
Frequently asked questions
How long does a wire transfer take?
A domestic wire sent before the bank’s cutoff generally settles the same business day. International wires typically take 1 to 3 business days, with delays possible from bank cutoffs, intermediary reviews, weekends, and holidays.
Can a wire transfer be reversed?
A completed wire is typically difficult to reverse. Contact your bank immediately if you sent money to the wrong account or suspect fraud, but do not assume the transfer can be recalled.
Does a wire transfer cost less than accepting a card?
Wire charges are bank fees, while card acceptance involves card-network and processor charges. The total cost depends on the specific transfer and your payment arrangement. International wires also introduce possible intermediary deductions and currency-conversion costs.
Is SWIFT the same as a wire transfer?
No. SWIFT is a messaging network financial institutions use to exchange payment instructions. An international wire is the bank-to-bank transfer itself, and the payment can pass through intermediary banks.