Learn all about Wire Transfer meaning and how it works.
Thanks to the internet, the banking sector has been revolutionised. Now, you can enjoy all kinds of banking services from the comfort of your home. You can also send money worldwide in a quick and hassle-free manner with Wire Transfers. Read on to understand Wire Transfer Meaning and significance.
The term Wire Transfer is usually used in the context of international fund transfers. A Wire Transfer enables the electronic remittance of money from one country to another. Such electronic transfer of funds relies on a global network facilitating transfers. Transfers are administered by banks and financial institutions worldwide. Since a Wire Transfer takes place between two banks, it is also known as a Bank Wire Transfer.
International Wire Transfer services take place through the Society for Worldwide Interbank Financial Telecommunication or SWIFT network. The SWIFT network is vast and includes various banks and financial institutions across the world. It is a messaging protocol used to send information from one bank to another.
To initiate a Wire Transfer, you must visit your local bank and provide beneficiary and bank account details. It also helps to know the SWIFT code of the recipient bank. Once you wire instructions, the sending bank provides the transfer instructions to the receiving bank. In most cases of international Wire Transfers, where the same bank does not exist in two different geographies, banks wire money through their network of intermediary banks.
While most people use Wire Transfers to send money overseas, you can use them domestically, as well. The Wire Transfer time for international transfers is typically 1-5 days, whereas a domestic Wire Transfer can be completed within a few hours.
The cost of Sending a Wire Transfer typically depends on various factors. Bank levy charges based on the fund transfer amount. The fee also depends on whether the sending and receiving bank is the same or whether an intermediary bank is involved in the transfer process. Typically, banks waive off Wire Transfers fees for same bank transfers.
Having explained wire payment meaning, let us understand the process of initiating a Wire Transfer. You must provide the following details to your local/sending bank to initiate wire money transfers.
The Wire Transfer facility enables you to send money across national and international borders. It is also relatively inexpensive. Remember to check Wire Transfer Fees and timeframes before initiating a transfer. With digibank, you can opt for world-class remittance services, including Wire Transfers from any corner of the world, through our internet and mobile banking platforms.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.