What Is a Wire Transfer? Guide to Wiring Money

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent, and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or network providers. Read more about our Editorial Guidelines and How We Make Money.
What Is a Wire Transfer?
What Information Is Needed for a Wire Transfer?
Your government-issued ID Your bank account number The full name and contact information of the wire transfer recipient The recipient’s bank’s name, address, and phone number The bank account or transit number for the recipient
Where Can I Send a Wire Transfer?
Types of Wire Transfers
Domestic Wire Transfers
International Wire Transfers
Pros and Cons of Wire Transfers
Pros
Fast transfer of funds. Wire transfers can be a convenient way to send money, as domestic transfers can take only a few hours and international transfers take a few days. Can send money domestically or internationally. With wire transfers, you have the option of transferring money within the U.S. or to another country. Provided by banks and wire transfer services. You can initiate a wire transfer through your bank or use a third-party service.
Cons
Wire transfer fees. Wire transfers can come with fairly hefty fees, especially if you’re wiring money abroad. Exchange rates for international transfers. When transferring money internationally, you’ll also have to account for potentially high exchange rates. Difficult to cancel or get money back. It may not be possible to get your money back after you wire it, especially for domestic transfers. If you’re sending money internationally, you have 30 minutes during which you can cancel the wire transfer. Make sure you’re confident about who you’re transferring the money to so you can avoid becoming the victim of a wire transfer scam.
How Long Does a Wire Transfer Take?
How Much Does a Wire Transfer Cost?
When Should You Consider a Wire Transfer?
Alternatives to Wire Transfers
The Takeaway
Frequently Asked Questions
Photo credit: iStock/skynesher
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About the Author
Rebecca Safier has nearly a decade of experience writing about personal finance. Formerly a senior writer with LendingTree and Student Loan Hero, she specializes in student loans, financial aid, and personal loans. She is certified as a student loan counselor with the National Association of Certified Credit Counselors (NACCC).
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