What information is needed for a wire transfer?
Wire transfers are an efficient way to send electronic funds to people and organizations across the globe. They tend to be a preferred option when transferring large amounts of money, especially when the sender and recipient are not local. There are different methods for sending wire transfers. These include bank-to-bank transfers, wire transfer stores like Western Union, or online money transfer services. The cost and speed of the wire transfer will depend on the delivery method you choose. The type of information required will also vary based on the wire transfer service.
What wire transfer information is required for bank-to-bank transactions?
Banks are one of the most secure methods of sending wire transfers. That said, they can be slower and more expensive than other money transfer services, especially if you’re sending an international wire transfer. To send a wire transfer by bank, you will typically be asked to provide the following information:
- Recipient full name
- Sender full name
- Recipient phone number
- Sender phone number
- Recipient address
- Recipient bank name and information
- Recipient checking account information
You can fill out this information via a form online or in a local branch.
You will need both routing numbers and bank account numbers for domestic wire transfers within the United States. The ABA routing transit number (ABA RTN) is a nine-digit code printed on the bottom of checks which identifies the financial institution from which the funds are sent. Designed by the American Bankers Association (ABA), this system facilitates the sorting, bundling, and delivery of money to the sender’s bank for debit to the recipient’s account. Electronic payment methods rely on ABA RTNs to identify the paying bank or other financial institution for bank wires. And the Federal Reserve Bank uses ABA RTNs when processing funds transfers.
For international wire transfers, you will need to know the recipient’s account international bank account number (IBAN), BIC, or SWIFT code. SWIFT/BIC codes globally identify banks and financial institutions. Used when transferring money between banks, particularly for international wire transfers or SEPA payments, these codes are also used to exchange messages between banks. When transferring funds internationally, you will also need to provide the dollar amount you are sending, and your financial institution may ask you to give a reason for the transfer. Be prepared to provide additional information, as well, as requested by the sending or receiving bank.
What information is needed to wire money using online transfer services?
Online electronic transfers can offer a faster and more affordable alternative to banks for customers sending foreign currency via international transfers. Before starting, you will need to register and verify an account with your chosen online financial service. Depending on the service you choose, you may need to provide the recipient’s personal and banking information, as you would with a bank-to-bank transfer. Some e-wallet services like PayPal allow you to transfer funds using only an email address. You will need to ensure the recipient also has a registered account.
What information is needed for wire money using in-store transfer services?
Money-sending services like Western Union and MoneyGram allow customers to send funds to a bank account or another store location for collection in cash. To transfer money to a recipient’s bank account, you will need their personal and banking information. If you’re making a cash transfer, you may need to show your government-issued ID at the store, and provide the recipient’s name, country, address and contact details. Make sure the name you give for the recipient is the same as it appears on their government-issued ID, or they might be unable to collect the funds. The recipient will need to know the branch or store location of the pickup, and will be asked to provide a tracking number and show their ID.
Keep in mind that cash transfers can be less secure than other methods, as you cannot always verify that the correct person has made the collection. Make sure you understand the risks and scams associated with wire transfers so you can prevent fraud and loss of funds.
Is it possible to track a wire transfer?
Being able to track your bank wire transfer can give you peace of mind that the recipient has received the funds. For bank-to-bank transfers, you will need to register for online banking to be able to track the payment progress. The recipient will be notified when the funds are available, so will need to check their account regularly.
In-store wire transfer services will provide a tracking number, which the sender will relay to the recipient. The sender can use this number to monitor the transfer progress if they have set up an online account. The service will notify the recipient when incoming wire funds are ready to collect, and both parties when the transfer is complete. The sender and recipient can also log in to their accounts for updates.
What are the costs associated with a wire transfer?
While transfer fees differ depending on transfer type and exchange rate, the average fee is around $14 for an incoming domestic, $28 for an outgoing domestic, $18 for an incoming international, and $50 for an outgoing international transfer. For example, Bank of America charges $0-$15, $30, $16, and $45 for each of these transfers, respectively.
A more affordable way to transfer money from one currency to another is person-to-person services like TransferWise, which might cost you less than a typical wire. Providing service to customers of any bank in the US, the fees at these services vary by currency. In general, transferring USD costs at minimum $3. For larger transactions, expect to pay roughly 1% of the total amount, along with possible additional fees.
Are there alternatives to sending wire transfers?
If you’re hesitant to send large amounts of money via wire transfer, another way to send funds is through Automated Clearing House (ACH) transfers. Named because they pass through a national electronic network for financial transactions called the automated clearing house, ACH transfers are cheaper than wire transfers. That said, they’re slower to process, and have lower limits on the amount of money you can send in a single transaction.
While wire transfers are processed immediately and on an individual basis, ACH transfers are processed in fairly large batches. For a standard domestic wire transfer, you can expect the transaction to post within half a day, while international wires can take upwards of two to three days for the money to arrive. Domestic ACH transfers typically take 1 to 3 business days to arrive, while international ACH transfers will take even longer. Some banks don’t facilitate international ACH transfers, while others limit the number of monthly ACH transactions, so check with yours for their policies.
At the end of the day, it’s your money, and you need to feel comfortable transferring it. Do some research with your bank, and determine which method you’re most confident using. And to ease the anxiety of sending large amounts of money, make sure the recipient on the other side of the transfer is ready for the funds to arrive. With the right preparation and vigilance, wire transfers can be a breeze.