Wire Transfers: 5 Must-Know Facts
Wire Transfers (Money Transfer). Why Choose to Move Money This Way? How Secure is it? Also, How Long Does it Take? How Much Does it Cost?
You need to send money to a company or individual. You need a solution that is easy, quick, and secure. A wire transfer might be your best option. Here are five facts everyone should know about these types of transfers.
1. What is it?
When learning about transferring money, the best place to start is to understand exactly what a wire transfer is. In short, this type of transfer is simply sending money from point A to point B electronically.
This can be done by a bank or another non-bank institution such as Western Union. It can also be broken into two categories, a domestic transfer or an international transfer (also known as a remittance).
2. Why Choose to Move Money This Way?
From online banking capabilities to peer-to-peer apps, you may never have needed to consider this type of Money Transfer before. However, there are multiple reasons why one might choose to move money this way. For example, if you need to send a large sum of money these transfers are often the most effective way to do so.
These transfers can also offer simplicity when sending money internationally especially when a change of currency is required. Other times these transfers are required such as sending money to an escrow agent to purchase a home. Whatever the case may be, there are plenty of scenarios when transferring money this way is the right option.
3. How Secure is it?
Generally speaking, these transfers are secure transactions. There is very little chance of the money being “stolen” or “lost” as opposed to mailing a check or other similar solutions. However, it is very important to understand who you are sending your money to and why.
Sometimes, unfortunately for the sender, Money Transfer funds can be difficult to retrieve if sent to the wrong person or for the wrong reasons. Fraudsters often attempt to prey on this pitfall. But with a little due diligence, you can avoid these security concerns.
4. How Long Does it Take?
When determining how long this type of transfer can take there are several factors involved. Some non-bank companies such as Western Union boast exceedingly fast transfer times, literally completing the transaction in minutes. However, going through a traditional bank may take anywhere from 1 to 5 business days. A good rule of thumb is to understand that international transfers of funds will almost always take considerably longer than a domestic transfer.
5. How Much Does it Cost?
Unfortunately, these Money Transfer are not usually the cheapest way to send money. The fees for a sender can be anywhere from $25 to $50 depending on the amount and type of transfer. Receiving individuals are often also required to pay a receiving fee by a bank, especially for international transfers. However, some banks offer discounted fees based on banking relationships.
There you have it, 5 must-know facts about wire transfers. Next time you need to send money, don’t fret. Transferring money this way might be the perfect solution.