Wire transfers enable monies to efficiently and quickly travel from one person or business to another. Funds are commonly sent from banks, credit unions or nonbank entities to designated locations at the request of persons or entities. The ability to send currency in this way offers various benefits.
Brief Wire Transfer History
Although currency has been in existence for thousands of years, transferring currency from one location to another is a fairly modern concept. The process began in 1872 when Western Union introduced the first wire transfer. The process enabled a U.S. entity or person to transfer funds to another U.S. entity or person via the telegraph. By the end of the 19th century, transferring funds internationally became possible secondary to the global expansion of banking and industries.
Fund Transfer Process
Transfers are categorized as being domestic or international. The domestic process sends funds from one location to another within the same country. On the other hand, sending monies from one country to another country requires an international transfer. The fees incurred by the sender and the receiver vary according to the amount of currency sent, the type of transfer and the type of desired payment.
The process requires the sender to pay a fee of up to $30 to initiate a domestic process. Fees for an international transfer may be up to $50. The transfer recipient is also charged up to $20 to complete the exchange. Transferring funds via non-bank entities is often less expensive. Individuals desiring to initiate a wire transfer must provide:
- Recipient’s name
- Recipient’s banking or other account type
- Recipient’s routing number
- Transfer amount
Non-bank entities additionally require the recipient’s address and phone number. The funds to be wired must be readily available through a bank account or as cash.
Wire Transfer Advantages
- The user-friendly process may take place at a bank, non-bank facility or at home online.
- Wire transfers take minutes to hours for completion compared to days or weeks.
- Funds are easily transferred from one location to another anywhere in the world.
- Monies may be transferred and received in any type of domestic or foreign currency.
- The process enables the transfer of tens of thousands of dollars.
- Adding a tracking ID for safety enables tracing of the transfer from start to finish.