Need to send funds quickly or securely? A wire transfer is one of the fastest and most reliable ways to wire money between bank accounts both domestically and internationally. Whether you’re purchasing property, paying a vendor or supporting family abroad, understanding how wire transfers work can help you complete your transaction smoothly and securely.
What is a wire transfer?
A wire transfer electronically transfers money from one bank account to another, offering a direct way to send funds. Some common uses for wire transfers include:
- Purchasing property or making large investments
- Paying international suppliers or vendors for business transactions
- Sending money to family and friends abroad
By eliminating the need for physical cash or checks, wire transfers can provide a simple and efficient way to send money, especially for time-sensitive transactions.
How do wire transfers work?
Wire transfers use encrypted communication systems, like SWIFT (for international transactions), to securely transfer funds between banks. The sender shares the recipient's banking details, and the bank sends payment instructions to the recipient's bank. Payments are typically processed by the recipient's bank within a few business days. International transfers can take longer than domestic transfers.
Steps to wire money
To avoid delays or errors while transferring cash, you must generally follow these steps.
Information needed to initiate a transfer
Here are some details you might need for a wire transfer:
- Recipient's full name: Check if the spelling matches their bank account records
- Account number: Ensure this is correct
- Bank name and address: Include the branch details, if asked
- Routing number (for domestic transfers): Required for identifying banks in the U.S.
- SWIFT/BIC Code: Needed for global transactions
- Purpose of transfer: Some banks may ask for this, mostly in instances of international transactions
Accuracy is important – incorrect or missing information might result in delays or failed transactions.
How to complete a wire transfer
You can wire money online, at a bank branch or through a third-party transfer service.
If you’re wiring money online:
- Log in to your bank account through its website or mobile app
- Select the wire transfer option from the transfer or payments menu
- Enter the recipient’s details exactly as listed
- Review the information carefully
- Confirm and submit the transfer
If you’re wiring money in person:
A banker can guide you through the process, review your information and provide a receipt for your records.
Let’s look at some of the differences between domestic and international wire transfers.
Aspect
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Domestic Wire Transfers
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International Wire Transfers
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Processing Time
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Typically completed within the same business day or by the next day. Weekends, holidays and off hours may prolong the transfer.
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May take 2 to 5 business days due to additional processing steps. Weekends, holidays and off hours may prolong the transfer.
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Required Details
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Recipient's account number and routing number.
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SWIFT/BIC code, recipient's bank address, and purpose of transfer.
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Fees
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Generally lower compared to international transfers.
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Include currency conversion fees and higher processing charges.
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Currency Conversion
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Not applicable.
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Required for transactions in foreign currencies.
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Purpose of Transfer
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Typically, simple (e.g., payments within the same country).
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May require additional justification for regulatory purposes.
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Can you cancel a wire transfer?
Once a wire transfer has been sent, it usually can’t be canceled, since the funds are already in transit between banks. However, if you realize there’s an error and the receiving bank hasn’t yet processed the payment, you may be able to request a cancellation, but you may have to pay a service fee.
Tips for wiring money securely
- Double-check every detail: Even one incorrect digit can delay or misdirect your transfer
- Use trusted institutions: Only wire money to recipients you know and trust
- Be cautious of scams: Avoid sending funds in response to unsolicited requests or suspicious emails
- Save your receipt: Keep a copy of your wire transfer confirmation for your records
Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.
