Wire Transfer

A wire transfer is an electronic method of moving funds directly between bank accounts, typically used for large or time-sensitive payments. Wire transfers move money quickly - often within the same business day - and are processed through secure banking networks regulated by the Federal Reserve.

Key Characteristics

Speed & Cost:

• Domestic wires: Same-day completion, $15-$35 to send
• International wires: 1-5 days, $35-$50 to send
• Much faster than ACH (1-2 days) but much more expensive

Finality:

• Wires are irreversible once received
• Guaranteed funds - no risk of bouncing
• This protects recipients but creates risk for senders

When to Use Wire Transfers

• Large transactions - Business acquisitions, real estate closings
• Time-sensitive payments - Urgent creditor settlements, same-day closings
• Guaranteed funds required - Seller demands immediate, certain payment
• International payments - Cross-border transactions requiring currency conversion

Example: A commercial property closing is scheduled for Friday at 2:00 PM. The buyer wires $350,000 (down payment and closing costs) to the title company's escrow account Thursday afternoon. The wire is received Friday morning, verified by the escrow officer, and the closing proceeds on schedule. If the buyer had used ACH instead, the 1-2 day settlement timeline would have delayed closing until the following week, potentially incurring thousands in penalty fees and lost rental income.

Wire vs. Other Methods

• vs. ACH - Wire: same-day/$25 vs. ACH: 1-2 days/$0.50
• vs. Check - Wire: same-day/guaranteed vs. Check: 5-7 days/can bounce
• vs. Card - Wire: no limits vs. Card: 2-3% fee/transaction limits

Critical Security Note

Wires cannot be reversed. Common fraud tactics include:

• Business email compromise (fake executive emails)
• Imposter vendor scams (fake banking updates)
• Artificial urgency (pressure to send before cutoff)

Prevention: Always verify wire requests through secondary communication (phone call to known number), require dual authorization for large amounts, never accept banking changes via email only.

The bottom line: Verify everything before sending. Once a wire is gone, it's gone forever.