Wire transfer is sending money from one location to another instantly. These two locations are the bank, and the money is transferred from one bank to another. The Online Wire Transfer is the most instant way of sending money.
This method is usually used to send money abroad to other countries. For example, they use this method when someone wants to send money from India to another country.
How does money transfer through this method?
Usually, the money in Online Wire Transfer is transferred through SWIFT (Society for worldwide interbank financial telecommunication network). This network is a messaging protocol with about 11000 banks in 200-plus countries. This network not only sends money from one bank to another but also sends instructions related to wire transfers.
If a person wants to transfer money from bank A (located in America) to bank B (located in India) or vice versa, bank A will send the instruction to bank B.
These instructions include information about the bank account and related data. This data consists of the recipient’s name, account number, and the transfer amount. This data is not transferred directly from bank A to bank B but through an intermediary bank.
However, the amount isn’t transferred from one place to another, but the particular amount is deducted from the sender’s account and added to the receiver’s account. Then, the transfer amount is deducted from the sender’s account and stays in the same country, and the same amount is added to the receiver’s account.
The wire transfer takes time.
The processing time depends upon the distance between the two locations. The money is transferred in both domestic and international wire transfers. The domestic wire transfers take about one day or less, but the international wire transfers take around 4- days or more.
How to do a wire transfer?
There are a few simple steps to transfer money through wire transfer. These are.
- First, you need to provide the information to your bank.
- This information includes the name of the recipient and the amount you want to transfer from your account to the recipient’s account.
- This process can be done offline by filling out the paper form. This form can be filled out online as well.
Cost involved
This process requires some extra charges. The remittance charges are almost negligible, but the intermediary bank charges some fees and service tax. The service tax is usually 1 to 0.5 per cent of the transferred amount.
How to wire money online?
There are three ways by which you can transfer money online, these are.
- Online bank wires.
- Wire transfer companies.
- Online and mobile payment service.
Online bank wires
Usually, most banks provide the service of wiring money online. It depends on your bank’s type of currency you want to transfer to the recipient account. The transferred money can be withdrawn from the saving or checking account.
The money is usually transferred on the same day, but this transfer time usually depends on your bank and the amount you have transferred.
However, there are certain limits to which you can transfer money online, but these limits are higher than other online money transfer platforms. To transfer money via bank wire, you will need the following information.
- Name and address of the recipient.
- Name of the recipient’s bank.
- A secure mobile device.
- An ABA routing number/ SWIFT code/ BIC code.
- Account number (in case of domestic wire transfer) or IBAN (International Bank Account Number)(in case of international wire transfer).
Wire transfer companies
These are wire transfer services that allow the transfer of funds domestically and internationally. You can visit either with cash or withdraw the money from your bank account.
The fees for these various companies differ a lot, but mostly the fee is less than the bank wire transfer. You will need the following things to transfer money via transfer companies.
- Personal information like name and address.
- A payment method, either Debit card, credit card, bank account, or cash.
- Recipients information.
Online and mobile payment services
There are a lot of online services that allow you to transfer money instantly. They are.
- Venmo.
- Zelle.
- Paypal.
- Cash App.
To send money via these apps, both people should be members of the same app. However, in case of an unsatisfied transaction, this transfer method provides a refund service, you can refund the transferred amount. To transfer funds via this method, you will need the following things.
- You need to be a registered member of the app.
- Registration requires an email address and a few common information.
- Recipients account information.
Investing in stocks has been trending nowadays, and usually does this via Stock Investment App. It has a similar mechanism to the online and mobile payment services as it requires you to become a member of the app, and then you can deposit, invest, and withdraw through the same app.
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