A guide to Wire transfers
A wire transfer is when funds are sent electronically between two financial institutions and is often commonly referred to as a bank transfer or credit transfer. Sending funds via wire transfer is a popular method for both domestic and international transfers due to its speed and convenience.
International wire transfers are often sent via the SWIFT system or Fedwire in the United States. These methods allow financial institutions to easily send secure instructions and locate the recipient’s bank to ensure that the funds are transferred to the right destination. Once the funds have been sent to the recipient’s bank, they will release the payment to the payee as per the sending bank’s instructions.
What are the options when sending a wire transfer?
Wire transfers can be processed via a bank, though many prefer to use a foreign exchange specialist if sending money abroad.
International wire transfers sent via bank can often result in costly fees, which can sometimes amount to up to 5% of your exchange rate on top of a separate transactional fee.
Using a foreign exchange specialist to make overseas payments can give you access to better exchange rates, with a variety of payment options to help make your international transfers both timely and cost-efficient.
What details are needed to make a wire transfer?
If sending a wire transfer by bank, the requirements can vary depending on the country to which you are sending funds. Often you will need to supply the following:
- Payee’s bank name and address
- SWIFT code (for international transfers)
- IBAN (required within Europe)
- Routing number (required within the United States)
- Reason for payment
- Source of funds
How long does a wire transfer take?
Domestic wire transfers are often processed very quickly, usually within a few hours.
International wire transfers, however, can take a few days to process as the SWIFT and Fedwire system mean that instructions may pass between several banks before reaching its final destination.
Is a wire transfer safe?
Wire transfers sent via a bank is a secure and reliable way to send funds both domestically and internationally as banks must confirm the identity of their account holders in the first instance.
Sending wire transfers via a foreign exchange specialist such as Halo Financial is also safe and dependable as we are regulated by the Financial Conduct Authority (FCA). Our two-step verification process for all account registrations and currency trades, allows you to place trades both confidently and securely.
To speak with one of our currency specialists about our smart foreign exchange solutions, please give us a call on 020 7350 5474.