Wire transfer refers to the electronic transfer of funds between one bank or credit union to another. A wire transfer can be initiated by an account holder at their financial institution, or they can be sent through a third-party wire transfer service. Wire transfers are a fast and secure method of sending money between accounts, but they usually come with a fee.
When a wire transfer is initiated, the account holder provides the sending financial institution with the recipient's account information, including their name, account number, and routing number. The receiving institution processes the payment and deposits the funds into the recipient's account. The funds are typically available for use within a few business days.
Wire transfers are commonly used for large transactions, such as real estate sales or business acquisitions, where a high degree of security and rapid processing are required. They are also used for international transactions where traditional methods of payment, such as checks or credit cards, may not be accepted.
