What Is a Wire Transfer?

Written by Chris Thompson

Edited by Lena Borrelli

Edited by Arturo Conde, CEPF®

Updated on April 24, 2025, 4:59pm ET

Perhaps you’ve found yourself in a situation (or two) where you needed to send or receive money as soon as possible. Whether it’s legal trouble, a large medical bill or an urgent trip, it’s not always easy to transfer money in the blink of an eye. However, in today’s technology era, moving money across the globe quickly has proven to be a very possible task. This is often done through wire transfers.

Before diving in, consider working with a financial advisor to help you get your finances in order.

What Is a Wire Transfer?

A wire transfer involves a bank-to-bank electronic transfer of money. You go to your bank to submit the required instructions and transfer details, such as the recipient’s bank information. Your bank will then initiate the transfer with the recipient’s bank.

Wire transfers also require a network for information to travel over. Most commonly, banks utilize Federal Reserve Wire Network (Fedwire), Society for Worldwide Interbank Financial Telecommunication (SWIFT) and Clearing House Interbank Payments System (CHIPS). Fedwire processes only domestic wires, SWIFT largely processes international wires and CHIPS can process both.

Instead of sending money directly to the recipient, however, the amount sent as a credit. For example, let’s say you want to wire your mom $500. You make the payment upfront and submit the paperwork to your bank, which then sends the wire to your mom’s bank. Her bank will then deposit $500 into her account from its reserve. Since you paid the amount upfront at the start, the transaction is complete once her bank processes it.

You can send wire transfers both domestically and internationally. International wire transfers are also known as remittance transfers. Domestic wire transfers can often be completed same-day, while international wires can take a few days. If the situation is dire, however, you can ask the institution for an expedited transfer. However, not all places offer this service, and it could cost you an extra fee.

It is worth noting that the term “wire transfer” has come to be associated with any electronic means of sending money nowadays. However, not every electronic money transfer satisfies the requirements of an actual wire transfer. In that case, you might want to clarify if someone asks you to send a wire transfer.

Types of Wire Transfers

There are several types of wire transfers you can send. Here is a breakdown for domestic and international transfers.

Domestic Wire Transfers

A domestic wire transfer is between two financial institutions within the same country. To make your transfer, you typically need to supply either a code or the branch number for the recipient’s bank account so you can ensure it goes to the right place.

Your transfer travels through an automated clearing house (ACH), and funds can be completed as soon as same-day, depending on your financial institution and the amount you send.

International Wire Transfers

Unlike domestic wire transfers, international wire transfers are between two financial institutions in different countries. A routing or SWIFT code is usually required to complete the transfer.

International wire transfers pass through both a domestic ACH, as well as a foreign system. Because of this, these transfers typically take a few business days to clear.

What You Need to Send a Wire Transfer

The information required to make a wire transfer will depend on whether it is a domestic or international wire transfer.

Domestic Transfers

When making a domestic transfer, you will need to provide your bank with the recipient’s name, address, account and routing number, as well as their bank’s name and address. You will also have to specify which accounts you would like to draw from.

To send a wire transfer through a U.S.-based bank or credit union, you typically use the funds in your checking account. You could also use the funds in a savings or money market account, though.

International Transfers

If you are sending an international wire, you will need to provide all of the same information.

However, you will also need a SWIFT code, National ID or IBAN number of the receiving bank to complete the transaction. Be sure to double-check with your institution to ensure you have provided all the necessary information so your transfer can be processed without issue.

Where to Get a Wire Transfer

Most major American banks offer wire transfers including Bank of America, Chase and Capital One. Credit unions like Navy Federal and PenFed allow members to make their own transfers. While it’s a safe bet that your financial institution can send a wire transfer, it’s also always good to make sure.

If you want to send funds internationally, you can also use transfer services like Western Union or MoneyGram. Typically, you have to pay with cash or a U.S. bank-issued debit or credit card. However, you can sometimes attach your own bank account for payment.

How Much Do Wire Transfers Cost?

Your bank’s wire transfer fees depend on whether you are sending a domestic or international wire. Sending a domestic wire through a bank or credit union usually costs anywhere from $15 to $30. However, due to its complexity, sending an international wire can cost you $50 or more.

Your bank’s fees, whether domestic or international, can also depend on the amount you are sending, the receiving bank’s incoming wire fee and network fees. International transfers also take into account whether you send funds in U.S. dollars or foreign currency.

When you send a wire transfer through other transfer services like Western Union, the fees can vary. These services take into account how you are sending the wire, the wire amount and where you are sending the funds. You may also have to take into account your location’s state and local taxes.

Unfortunately, you are also subject to fees–even if you are the recipient of the wire transfer. Banks can charge you $10 to $20 for processing a wire transfer. It often does not matter whether you receive a domestic or international wire, though.

What to Watch Out For

Wire transfer scams are common, so make sure that you follow security measures.

Moving money across the web is already a risky business. Even as banks and financial institutions evolve their security measures, fraudsters also adapt to security changes.

Be wary of wire transfer scams, which start with an almost-too-good-to-be-true deal. You may think you have snagged a new apartment, an extravagant vacation or a new car. Before you get your hands on the prize, though, you have to wire money first. This is where you fall victim to fraudsters, because by the time you realize the scam, it is almost always too late and the money is already gone. Plus, these criminals quickly transfer the money elsewhere, making it harder to track and recover.

If you are the recipient of a wire transfer, you are less at risk of fraud or interception of funds. While it is always good to stay alert and on top of your accounts, you need to be extra careful when sending a wire transfer.

Bottom Line

Wire transfers offer a quick and reliable way to send money both domestically and internationally. You can easily send a wire transfer from your bank or another financial institution, as long as you provide the necessary banking and personal information. The main downside to wire transfers is their cost.Instead, there are a number of cheaper–if not free–ways to send money electronically. A financial advisor can help you find the right one.

Tips for a Successful Wire Transfer

When you’re moving large amounts of money, you may want to get a third-party involved. A financial advisor can help manage all of your assets and make sure that the money is moved safely while limiting the number of fees you end up paying for that service. Finding a financial advisor doesn’t have to be difficult. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Since wire transfers can take a couple days, or a week for international wires, to process, you’ll want to leave ample time between your sending date and the latest desired arrival date. This gives you room to ensure everything runs smoothly. If the transfer is urgent, you may want to look into an expedited delivery, if possible.
Finally, watch out for scams. Assume that any too-good-to-be-true offers, especially over the phone and email, are fraudulent. Always check the legitimacy of the claims before you send any money, if at all. Unfortunately, you can’t do much after sending a wire transfer that you regret.