What is a Wire Bank Transfer?
A wire bank transfer is used to transfer funds electronically from one individual or business to another. There are a range of wire transfer options depending on the urgency and finality of the settlement; volume of transactions; amount being sent and cost of the wire transfer. A wire bank transfer is initiated when the sender contacts his bank and supplies the information for the required transfer – amount of money to be transferred; IBAN/SWIFT of the receiving bank; name of receiver and their bank account details. The sending bank transmits a transfer request via a secure electronic system like SWIFT to the receiving bank. Within a few hours or days the funds are moved from the sender’s account to the receiver’s account. The banks must have reciprocal accounts with each other or the transfer must be sent via a bank with such an account.
Fees and charges are made at every stage of the wire bank transfer process. Both the sender and the receiver of a wire transfers will need to pay for the service. The sending bank charges a fee separate from the transferred amount; the receiving bank deducts a fee from the transferred amount and any intermediary banks will also take a percentage of the amount being transferred. This means that the recipient receives the transferred amount minus the fee deductions and the sender pays more than the amount sent; as he pays bank fees for the wire transfer service.
Alternatively you can use a cash office or money wire transfer service like Western Union where you can provide the money from a bank account (credit card) or hand over cash. The recipient can pick up the funds from the cash office or have it deposited in their bank account. The exact process, speed and cost differ depending on whether you make the wire transfer through a bank or a wire transfer service.