What is Wire Transfer?
There are numerous ways to send money from one person or company to another. Wire transfer is one of the most commonly used methods for transferring money from one person to another. In order to make a wire transfer, a person needs to visit a bank or the cash office. Wire transfer can be made from one bank account to another. In order to make a wire transfer an individual needs to visit a bank and provide detailed order of making the wire transfer. Banks require IBAN and BIC codes for knowing exactly where they need to send the money.
The bank which is chosen for sending the money through wire transfer then sends a message through a secure system to the recipient bank, requesting it to process the transaction as per the instructions. Settlement instructions are also included in the message. One should understand that wire transfer may take time. Funds may take a few hours or even days to reach to the bank account of the recipient.
Banks charge certain fees from both the sender and the receiver of wire transfer. People who send money through wire transfer are charged by the bank and they need to pay extra money other than the amount of wire transfer. The recipient bank deducts the fees from the amount received through wire transfer. It signifies that the recipient gets lesser money than actually sent by the sender. Wire transfer is one of the most secure methods of payment. A large number of people use this service for sending payments to other states of their countries or other countries. There is no fixed fee of the bank wire transfer. The amount charged by a bank for doing wire transfer depends largely on its location and policies.
People may also choose to do wire transfer from cash offices. Such wire transfers are generally anonymous. This type of wire transfer is done between those people who trust each other completely. However, people should understand that sending wire transfer to an unknown person is not at all safe. Many scams have occurred in the past related to wire transfer from cash offices. Wire transfer is a very convenient method to send money from one person to another. A person needs to spend a little of his time for sending money through wire transfer.