How To Send And Receive Money Through A Wire Transfer

Tolu Gabriel
Tolu Gabriel January 28, 2022
Updated 2022/01/28 at 11:13 AM
How To Send And Receive Money Through A Wire Transfer

Doing a wire transfer can get your money moved quickly and securely with ease. But you may have some challenges gathering and providing necessary information in the required formats.

It is important to decide properly about the transfer you want to do with a wire transfer, otherwise, you will not be able to get your money back once it has been sent. You will neither be able to stop payments nor cancel the transfer for a refund. So, this may be a risk if you are not certain if the money should be paid.


What Are The Types Of Wire Transfer There Are?

The term wire transfer is usually associated with:

– payment is done electronically using a money transfer service such as Western Union where someone’s bank account might be harnessed.

– a transfer that is done from bank to bank through Physical bank networks. 

The process you’ll be subjected to is determined by the transfer type you are using. But as explained earlier, wire transfer concerns a credit union money transfer or bank-to-bank procedure.


Contact Your Bank To Find Out How To Carry Out Transactions Through a Wire Transfer

Banks often accept online wire instructions, but you need to verify that you have entered all required information before you start. Confirm limits.

There may be additional information you need to provide or you might need to kick off a process online. The following information is likely going to be needed from the prospective recipient to carry out a successful transfer.

– The recipient bank name – where the money would be transferred to.

– Recipient bank’s American Bankers Association (ABA) routing number or other code.

– The account number of the Payee at the bank.

– Extra information required could be a delivery instruction, and so on.

Contact your bank to be sure you have provided everything required after you must have submitted your request.

If you are sending funds, you’ll be expected to pay a charge for the service, and even very likely too, when receiving funds. Costs for the service may run up to $50, and it is better to do funds transfer out if you’re checking accounts to avoid cash advance charges and high interest rates.

For a credit card, your card issuer may charge extra fees since a wire transfer is often treated as a cash advance.

Beware of Scammers

Do not send money based on the information you receive in an email. Even when you receive instructions electronically, confirm them via a call before taking further steps on it. Be sure that the information is directed from the right source.

Hackers are always looking for new ways to fraud their victims, and one way they device is to intercept messages and alter account information for the ones they control. You should be extra careful especially if you’ll be paying a huge amount. So, if your title company sends wiring instructions for a down payment, ensure to confirm the destination of the transfer.


How To Receive Money by Wire

Freelancers often need to deal with receiving money via wire transfers aside from other payment methods. If you fall into this category, you’ll be required to provide the sender with your bank account details.

Ask your bank for wire transfer instructions for cash recipients, and double-check to be sure you are correct with the process.

Take note that using an ABA number that is used for direct deposit or checks might not be the best for your wire transfers. International wire transfers often require a SWIFT CODE. But speak to customer service to verify the numbers and instructions you are following.

Oftentimes, sending a wire transfer requires higher fees than receiving one. Receiving a wire transfer may cost you between $0 and $18 while sending may cost $30 and more. Foreign transfers are much more expensive than local ones.

Receiving a Wire Transfer Credit

Bank wires do not often show up immediately in the recipient’s account even though they are very fast. The recipient bank often has a long queue of bank wires coming in, so sometimes the Payee may not get credited in time. 

This delay can frustrate urgent and large transfers, but it is usual. Sometimes, knowing who to call can help you contact someone who can verify the transfer was completed, but at times, you need to wait. They may even complete your bank wire the same day; it depends on when you submit instructions.

If you are the one receiving the wire transfer and you are concerned about what issues may have been, you should consider speaking to a bank staff to know if there was any delay over the funds being cleared. You may also have other concerns about the transaction you want to discuss with them.


Alternative Ways To Move Money

There are alternatives to wire transfer, though sometimes, it may be your only option.

Money Orders and Cashier’s Checks

If you are considering funds to clear quickly, cashier’s checks are regarded as secure and less costly to bank wires. When the check is printed, the credit union or bank takes the money out of the customer’s account.

Like cashier’s checks, money orders are quite inexpensive, but with issues on security. You can get them at credit unions, banks, post offices, and convenience stores. If you want to make large purchases, then you should consider other alternatives. This is especially due to its maximum limits that vary by the issuer, and which demands the inconvenience of acquiring different money orders.

Money Transfer Services

MoneyGram and Western Union money transfers are sometimes referred to as ‘bank wires’ and some of the transfers are almost immediate.

It can happen in just a few minutes. The sender sends the money via a close retail outlet and the cash recipient can pick it up at the other end within a very short time. If you do the funding via your bank account, the process of transfer may take up to a few days. With your credit card, you’ll be charged extra fees.

Other Alternatives

There are other options you can use to send money directly to your bank account. Some online services and apps you’ll find include Cash App, Venmo, and PayPal. But it is often advised that you double-check the terms and conditions of these platforms to avoid your cash getting stuck.

You might also want to know if you are paying the actual recipient. Generally, the process of transaction with these platforms might take days and require some level of confidence and trust from both parties involved.


Frequently Asked Questions (FAQs)

How do you get money back from a wire transfer?

It is always better to do a proper consideration and confirmation before finally initiating a wire transfer. Once you’ve done it, there’s no guarantee that you’ll get the money back if you decide to change your mind. But, it’s possible you can alter the process if you call your bank or credit union before the receiving institution finally approves the transfer.

Explain your position about what you just discovered around the recipient, like if it is a scam. You may also want to notify the consumer protection office of your state, your local police, and the FTC.

How do you wire money to a bank account?

To do a successful wire transfer, you’ll need the recipient’s bank information. For instance, they’ll need to provide their first and last name, contact information, account number, and routing number for wire transfers.

Ensure that the recipient confirms the details with their bank or credit union so that the transfer would be successfully delivered to the right place. Visit your bank’s branch, provide the transfer information, and then, the money is wired.

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