What is a Wire transfer?

Money that is electronically transferred is called a wire transfer. There is no actual exchange of cash in this electronic transfer only the balances in the accounts are adjusted accordingly. This method is a very safe method to transfer money as the positive identification of both the account holders is required. The transaction can’t be reverted back unlike the case with a personal check.

This method has become very popular with transactions such as credit card balance transfers, management of personal accounts etc. Management of personal account is done for example the transferring of balance from your savings account to your checking account.

Also the popular mode of payment and withdrawal, the ATM card is also a form of a wire transfer. Every time the ATM card is swiped at a retailer’s the wire transfer is in progress with relation to the card from the holder’s account to the retailer’s account. Such a kind of wire transfer is a point sale transfer and is not charged to the customer. However other kinds of transfers are charged for.

The fee for the wire transfer depends upon the policies of the bank or any financial institution you are dealing with. Sometimes the fee could be a flat fee that has been affixed previously or it could be a percentage of the amount that is being wired. This happens mostly in the cases where credit balances are transferred.

Companies such as Western Union have other methods of wire transfer also. There is an anonymous method too. The outlets of Western Union are spread all over the world so that money can be transferred between them. So for instance within the same country say the USA money can be transferred from its one branch in Arizona to its other branch in Bahamas by simply paying the amount that you wish to transfer and whatever their fee.

This transfer can take place within minutes. This method of transferring money is very convenient when someone doesn’t have a bank account on either side of the transfer. Its drawbacks are also there that if something is purchased over wire transfer then false details could be given to the purchaser or the seller over the transfer.

The collection of cash could be had under the false ID and without providing the goods the party might vanish. There is a concern with the law enforcement agencies over anonymous wire transfers as being easily used for illegal activities.

A wire transfer from one bank to another is the safest method to electronically transfer money. This method of wire transfer is more environment friendly as it saves the need for paper thereby helping in saving it. Contact your banking institution to find out how you can avail this service.