How to Send a Wire Transfer: A Simple Guide

We all occasionally send money from one bank account to another, whether to pay for a service or manage personal finances. In such cases, a wire transfer is among the better options you can choose. However, like any other payment type, wire transfers have quite a few nuances you should be aware of.

This article describes what a wire transfer is, explains how to do a wire transfer, and suggests alternative methods of getting money to where it needs to be. So, read on!

What Is a Wire Transfer?

Before you learn how to wire money, let’s make sure you know the basics of this operation.

A wire funds transfer is a common method of sending money from one financial organization (bank, credit union, etc.) to another. Today, when the lion's share of all banking is done electronically, with no checks or cash involved. Online banking allows for wiring money both within the country and overseas without visiting a brick-and-mortar branch.

How to wire cash across such great distances? To accomplish this feat, financial institutions rely on networks such as SWIFT (Society for Worldwide Interbank Financial Telecommunication) and Fedwire Funds Service. The former handles international transfers, while the latter is operated by the Federal Reserve Banks and manages transfers inside the US. Both function like a chain of money transfers from one bank to another, eventually landing the money in the hands of the recipient.

This method is reliable and secure, but costs a lot of money per transaction, as each bank in the chain may charge a fee. However, if you need to send large sums, security and reasonable speed of wire transfers outweigh cost considerations.

If this is your case, let’s find out how to wire money online.

How to Wire Money from One Bank to Another: A Step-by-Step Manual

The process of wiring funds is nothing special, yet you should keep to the following roadmap to rule out mistakes and mishandlings.

Decide on a Provider

If your priority is saving on transfer fees, you should wire your money through a bank (or rather, banks, as both the sender's and the receiver's banks are involved). The fees for domestic and international transfers differ.

Alternatively, you can use a financial firm (for instance, PayPal, Western Union, or Wise). The procedure is similar, but the fees and exchange rate markups vary by provider — in some cases, digital services may be cheaper than a traditional bank wire.

Collect the Necessary Information

Banks require you to provide the following information before you’re allowed to wire money:

• Official ID and/or access to your online account;
• The account itself, with the balance at least equal to the sum you want to send;
• Bank account number (you can find it on a bank check, statement, or your online account);
• The recipient’s name, contact information, and bank account number;
• The recipient bank’s name and routing number.

If you wire money through a non-bank provider for cash pickup (e.g., Western Union or MoneyGram), you’ll usually need only the recipient’s name and location, though some services may require additional details depending on local regulations.

It is mission-critical to double-check the correctness of all the names and numbers involved, as once sent, a wire transfer can't be reversed.

Check the Cost of Each Transfer Method

Banks offer several money wire options (online, dedicated mobile app, by phone, at a bank's branch, or at a retail outlet) that differ in price. In the US, an average outgoing domestic wire transfer will cost you about $26, while an average international one costs around $44. You can save a pretty penny by reading the price list on the bank’s website carefully and selecting the most suitable transfer method.

Don’t Ignore the Fine Print

The provider is obliged to communicate all the information relevant for your wire, including exchange rates and amounts to be sent, total fees, taxes, the delivery date, etc. Make sure you know all these details before taking action.

Fill out the Form Scrupulously

A misspelled name or an omitted digit can prevent your partner from receiving the transfer or even send your wire to the wrong person or location. If this happens, kiss your money goodbye. To forestall such incidents, check your form multiple times before submitting it.

Keep the Receipt

It is an official document confirming the transfer. Make sure it contains the provider's contact information, the dates of transfer and delivery, and the recipient’s name. You should keep it safe in case any issues crop up later.

It all seems rather clear and straightforward, right? Still, a surprising amount of people manage to botch this procedure every month.

Common Wire Transfer Mistakes to Avoid

Even the most experienced users may occasionally make mistakes like:

• Entering incorrect information. Providing the wrong account number, name, or bank details will either send the wire to nowhere or turn your money into a windfall for some stranger overseas.
• Having insufficient funds. The balance on your account should be at least equal to the sum you plan to wire.
• Exceeding transfer limits. Banks impose per-transaction and per-day limits on wire transfers. If you cross this threshold, the wire won't reach the recipient.
• Misunderstanding fees and exchange rates. Each bank or financial organization has its own currency exchange rates and transaction fees. You should check their rates in advance to avoid painful surprises.

A wire transfer isn’t the only way of sending money.

When to Consider Alternatives to Wire Transfers

Wire transfers are convenient, but their two main drawbacks are that they are expensive and can take one to several business days to settle. That is why it makes sense to use it for one-time transfer of large sums in cases where time is not an issue. In other scenarios, like sending smaller amounts, making recurring payments, or needing faster and more affordable options, alternatives such as Wise, MoneyGram, ACH transfers, Zelle, PayPal, Venmo, and prepaid debit cards can be more suitable.