What is a wire transfer and how does it work?

A wire transfer is an electronic transaction that allows you to quickly send a large amount of money. Other money-transferring services limit how much money you can transmit, but wire transfers allow you to send more than $10,000.

Wire transfers deliver funds to the recipient's bank account. Proper verification procedures ensure wires are sent safely to the correct recipient. Generally, the sender initiates the process in person, online or by phone.

Wire transfer procedures may differ when sending money within the same country versus overseas. When you request a wire, you'll need to know the type of transaction to request — domestic or international.

Domestic wire transfer

Domestic wires transmit funds to a recipient located in the same country as the sender. Depending on your bank, you may be able to initiate a domestic transfer in a local branch, over the phone or by using a banking app. You'll need to supply the recipient's routing and bank account numbers and their contact information. Domestic wire transfers generally clear within one business day.

International wire transfer

International wires send money to recipients outside the originating country. Banks and financial institutions may maintain tighter processes when sending money overseas and require customers to visit a branch. To send an international wire, you'll provide the recipient's banking and contact information. You may also need to supply additional information for an international transfer. An international wire takes at least two to three business days, possibly longer depending on the receiving country's time zone, banking processes or international holidays.

Before you request a wire transfer, gather the necessary information for both the sending and receiving bank accounts. Any additional information needed to perform the wire transfer may vary between banks or financial institutions. Here's a step-by-step guide to the process:

1. Determine if you need a domestic or international transfer

   Discuss with the recipient where the money will go. Domestic wires are transmitted between banks in the same country. If you need to send money to a bank or financial institution located outside of the country, you'll request an international wire.

2. Confirm your bank's wire transfer process

   If this is your first wire transfer with your bank, you may want to call ahead to discuss wire transfer services. Ask what information you need to request a wire and where to complete the transaction. When requesting a wire online, it may be helpful to have a customer service representative talk you through the process.

3. Have the account information ready

   Gather the necessary account information for both the sender and recipient. You can use your checkbook, bank statement or banking app to find your routing number and bank account number. You'll also need the recipient's name, ABA routing number (or SWIFT code for international wire transfers), account number and contact information.

4. Process the wire transfer

   Work with your bank to complete the necessary forms to transfer the funds. Make sure you receive a confirmation of the transaction. Contact the recipient to let them know the money is in transit, and follow up to ensure they received the funds.

Safety concerns are natural when you're preparing to send a large sum of money directly from your bank account. By learning how banks process wires and ensuring you provide the correct information, you can avoid issues with your transaction.

Wire transfers are safe when sent to the correct account

At some point, you may receive a spam email request or a suspicious phone call from an unknown party requesting a wire transfer to their bank account. Online and phone scammers use wire transfers as their tool of choice since U.S. wire transfers are irrevocable by nature. For this reason, know exactly where you're sending funds and who will receive them.

Generally, wire transfers can't be canceled

Although rare, a financial institution could honor a request to cancel or recall a wire. To complete the recall, the recipient must also give their approval. International wires sent through banks or other financial institutions that process wires as a normal course of business are known as remittance transfers. These international wires may sometimes be canceled within 30 minutes unless the transaction is delivered to the recipient within that time frame.

Banks maintain high security around wire transfers

All U.S. banks and financial institutions adhere to strict security protocols. Wire transfers are protected by the same security systems used to guard your account information. Banks must also report certain wire transactions to the government. Certain wires over $10,000 are reported to the IRS in accordance with the Bank Secrecy Act. Additionally, the Office of Foreign Assets Control requires U.S. banks to review wire requests and check current sanctions lists. If the bank detects a match, it must report the transaction and complete any required follow-up actions, such as requesting additional verification or rejecting the wire.

Banks charge a flat fee for sending a wire transfer. Domestic transfers tend to cost around $30, while international transfers generally cost more, approximately $40.

In most cases, the recipient will pay an incoming wire transfer fee of around $20, along with intermediary bank fees for international wires. Before sending a wire transfer, check with your bank or financial institution for the exact costs.

Although you'll pay a wire transfer fee, you can generally send a larger amount of money compared to low-cost or no-cost alternatives such as an automated clearing house (ACH) or mobile payment apps. Wires typically process faster than other types of electronic transfers. You may prefer to use a wire transfer to expedite large financial transactions when you need to meet a crucial deadline, such as a mortgage payoff or a home purchase.

Typically, you can expect a domestic wire to process within one business day. International transfers take two to three business days or longer. When sending a wire, ask about daily cut-off times — for example, you may need to submit your request an hour before the bank closes to process the transaction on the same day. Bank holidays may also affect wire processing times.

Consider the pros and cons of a wire transfer to decide if it's the best method for your time frame and the amount you want to send.

If you need to send a large amount of money quickly, a wire transfer tends to process faster than other options such as Venmo, Zelle® or ACH transfers. You can also send wires internationally, so they may be your best option to send money to friends or family overseas.

If you need to initiate a wire transfer, you can download the Citizens mobile app¹ to get started.