What are wire transfers and how do they work?

Wire transfers are one of the fastest and most reliable ways to move money between bank accounts, especially for large and international payments. Unlike checks or online wallets, wire transfers don’t require physical handling or third-party apps.

With wire transfers, funds move electronically from one bank to another, often clearing the same day for domestic transfers and within a few days for international ones.

In this post, we'll explain what wire transfers are, how they work, and their pros and cons, and we'll discuss some alternative payment methods.

What is a wire transfer?

A wire transfer is an electronic payment method that transfers money directly from one bank account to another via a secure network. Through wire transfers, people and businesses can transfer money between financial institutions both domestically and internationally. They're often used for large payments, international transactions, and business-to-business (B2B) payments.

Wire transfers work by sending electronic funds transfers between bank accounts using wire networks. There are different wire networks in different regions and worldwide. For instance, wire transfers in the United States are executed either through the US Federal Reserve Bank's Fedwire system or the Clearing House Interbank System (CHIPS).

Wire transfers vs. ACH vs. bank transfers

Wire transfers differ from ACH and bank transfers in a few ways. Automated clearing house or ACH transfers are also a form of bank-to-bank transfer, but they work on a different network. An organization called Nacha (formerly the National Automated Clearing House Association) governs the ACH network.

ACH payments are limited to the United States and Puerto Rico, while wire transfers can be sent internationally via the Society for Worldwide Interbank Financial Telecommunication or SWIFT network. This is a secure international bank network that allows financial institutions across the world to send and receive transfers of funds.

"Bank transfer" is a broad term that encompasses transactions such as wire transfers and ACH transfers. A bank transfer can also be a movement of funds between two of your own accounts.

Are there any transaction limits to wire transfers?

Wire transfers don’t have federally mandated limits, but banks and financial institutions often set their own based on risk policies, account type, and customer profile.

For personal accounts, limits can range widely. For example, Citi caps domestic transfers at $50,000 per account per business day, whereas Chase allows up to $100,000 per day.

Business accounts often have higher or adjustable limits, especially for companies that process large payments regularly. Some banks allow businesses to request customized limits based on transaction history and need.

Limits can also depend on the destination country. Transfers to high-risk regions may be restricted or flagged for additional review. Banks follow compliance frameworks, such as the Office of Foreign Assets Control's (OFAC’s) sanctions list, to help manage international transfer risk.

In most cases, if you need to exceed your daily or per-transfer limit, you can request a temporary or permanent increase. However, this may involve manual approval or extra verification steps.

How do wire transfers work?

Wire transfers move money electronically between banks through secure networks, making them one of the fastest ways to send funds domestically or internationally.

The wire transfer process involves a few key steps:

• Electronic initiation: You provide transfer details to your bank through online banking, phone, or in-person visit
• Bank processing: Your bank verifies funds availability and prepares the transfer instructions
• Secure network transmission: Banks communicate through encrypted networks such as Fedwire (domestic) or SWIFT (international)
• Recipient bank processing: The receiving bank validates the transfer and credits the recipient's account

Your sending bank acts as the starting point, debiting your account and transmitting payment instructions through the appropriate network. The receiving bank then processes these instructions and deposits the funds into the recipient's account. Both banks maintain detailed records and ensure all regulatory requirements are met throughout the transaction.

Domestic wire transfers stay within the same country and typically use national networks such as Fedwire in the United States. International wires cross borders and require additional processing through global networks, which can add time and complexity to the transfer.

While the process involves multiple steps and networks, wire transfers remain straightforward from your perspective. Simply provide the necessary details, and your bank will handle the complex behind-the-scenes work.

Types of wire transfers and their costs

There are two types of wire transfers based on where the money is going: Domestic transfers that stay within your country's borders, and international transfers that cross into other nations. Each type has its own requirements, timelines, and costs.

Domestic Wire Transfers

Domestic wire transfers move money between banks within the same country. You'll typically use these for large purchases such as real estate down payments, business transactions, or urgent personal transfers where speed matters more than cost.

Most domestic wires process the same business day if submitted before your bank's cutoff time (usually between 3pm and 5pm). Fees generally range from $15 to $30 for outgoing transfers, though some banks charge more. Processing happens through national networks, such as Fedwire in the United States, which makes transfers fast and reliable.

To send a domestic wire, you'll need the recipient's full name, bank routing number, and account number. Some banks also require the recipient's address and phone number for verification purposes.

International Wire Transfers

International wire transfers send money across borders to banks in other countries. People commonly use these for overseas property purchases, supporting family abroad, paying international suppliers, or making large foreign investments.

International wires take longer than domestic transfers, typically 1–5 business days depending on the destination country and any intermediary banks involved. Fees are higher too, often ranging from $25 to $50 or more, plus potential receiving fees charged by the destination bank. Currency conversion adds another layer of cost if you're sending money in a different currency.

These transfers require more detailed information than domestic wires. You'll need the recipient bank's SWIFT or BIC code, complete bank address, and sometimes details about intermediary banks that help route the transfer. The recipient's full address and additional identification may also be required.

International wires face additional scrutiny due to anti-money laundering regulations and sanctions compliance. Banks may hold transfers for review, especially for large amounts or transfers to certain countries. This regulatory oversight can add processing time but helps ensure the safety and legality of cross-border transactions.

To minimize costs for either domestic or international wire transfers, compare banks and ask about all potential fees so there are no surprises.

Are wire transfers safe?

Wire transfers remain one of the most secure methods for moving money electronically, backed by established banking protocols and regulatory oversight. However, like any financial transaction, they come with certain vulnerabilities that you need to address proactively.

The primary risks associated with wire transfers fall into three main categories:

• Human error: This can lead to costly mistakes when account numbers, routing information, or recipient names are entered incorrectly
• Scams and fraud: Sophisticated scams targeting businesses have become increasingly common, with fraudsters impersonating vendors, executives, or legitimate partners to redirect payments
• Cybercrime: Cybercriminals may attempt to intercept wire instructions through compromised email accounts or unsecured communication channels

Here are practical steps to protect yourself and your business from wire transfer fraud:

• Verify recipient identity through multiple channels: Call the recipient using a phone number from your records (not one provided in the wire request) to confirm they initiated the transfer request and verify all account details verbally
• Establish a dual-approval process: Require two authorized personnel to review and approve all wire transfers, especially those above a certain dollar threshold or to new recipients
• Use secure communication methods: Avoid sending wire instructions via email when possible. If email is necessary, use encrypted communication or split sensitive information across multiple messages.
• Implement callback procedures: Create a policy requiring callbacks to verify any changes to existing wire instructions, regardless of how legitimate the request appears
• Monitor for red flags: Be suspicious of urgent requests, last-minute changes to payment instructions, or pressure to bypass normal approval processes
• Keep detailed records: Document all wire transfer approvals, including who authorized the transfer and when verification steps were completed
• Train your team regularly: Educate employees about common fraud tactics and ensure they know your organization's wire transfer procedures
• Use official bank channels: Always initiate wire transfers through your bank's secure online portal or in person at a branch, rather than through third-party services

Wire transfers are typically irreversible once processed, making accuracy absolutely critical. Unlike credit card transactions or ACH payments, you generally cannot dispute or reverse a wire transfer after the funds have been sent. This finality means that taking preventive measures up front is far more effective than trying to recover funds after a fraudulent transfer has occurred.

Banks may offer some recourse if fraud can be proved quickly, but recovery is never guaranteed. The best protection against wire transfer fraud is a combination of vigilant verification procedures, clear internal policies, and ongoing employee education about evolving threats.

How to send a wire transfer

Wire transfers are an easy and accessible way to send remittances, whether they be bill payments or transfers between friends and family. The process is straightforward with the right information.

1. Gather required information

You’ll need the following information for a wire transfer:

• Recipient's full name
• Recipient's bank's name
• Recipient's account number
• Receiving bank's routing number (for US domestic transfers,) SWIFT code or IBAN number (for international transfers)
• The amount of money to transfer
• Reason for transfer
• Any additional instructions, optional

You can send wire transfers in person at a branch or via phone, but most US banks let you send a wire transfer in minutes through online banking or mobile apps. To begin, log in to your bank account and navigate to the section labeled “Wire Transfer,” “Transfers,” or “Send Money.” This option is usually found under your payments or transfers menu.

2. Initiate the transfer

Next, enter the recipient’s bank details carefully. Double-check all the information before proceeding. Incorrect recipient details are one of the most common reasons for wire transfer delays. Most banks also require 2-factor authentication or a security PIN to complete the transaction. This extra step helps protect your account from unauthorized access.

Wire transfers must be submitted before your bank’s daily cutoff time—usually between 3pm and 5pm local time—to be processed the same day. Transfers sent after this time are processed on the next business day.

If you're sending money internationally, your bank may ask for additional information and show the exchange rate before you confirm the transfer. Some banks allow you to lock in the rate at the time of sending.

3. Confirm and track the transfer

After submitting the transfer, your bank will provide a confirmation message and a reference number. It’s important to save this reference number in case you need to track the transaction or resolve an issue later.

Wire transfers offer a reliable way to move money quickly when you have the correct information and follow your bank's security procedures carefully.

How long do wire transfers take?

Domestic wire transfers usually go through the same day, while international wire transfers take 1–5 days. Timing is subject to factors such as bank cutoff times, weekends and holidays, intermediary banks, and time zones.

To ensure faster processing, send your wire transfer early in the day, and confirm all required banking details to avoid errors that can delay your transaction.

Pros and cons of wire transfers

While wire transfers are fast and efficient, they’re not without risks. Unlike other payment methods, wire transfers are difficult to reverse, and verifying the recipient’s identity isn’t always straightforward.

Pros of wire transfers

• Secure: Wire transfers are a secure method of transferring large sums between businesses, reducing the risk of fraud compared to traditional methods, such as checks or cash
• Fast transactions: Domestic wire transfers are typically completed within the same business day, making them ideal for urgent payments
• Easy process: Initiating a wire transfer is simple, often requiring just a few clicks within your banking platform, which allows businesses to move funds efficiently without involving multiple intermediaries
• Global reach: You can easily send money—even large amounts—almost anywhere in the world as long as you have the correct recipient information

Cons of wire transfers

• Risk of fraud: Wire transfer fraud can occur, especially in cases of business email compromise (BEC) or other social engineering tactics
• Irreversible payments: Accuracy is critical when entering account details, such as IBANs or account numbers because once a payment is sent, it cannot be reversed. A small mistake can lead to incorrect transfers, causing delays or requiring lengthy investigations to resolve the issue.
• Lack of recipient verification: Since wire transfers don't typically involve a verification process, businesses risk sending funds to an incorrect or unverified recipient, especially when making advance payments for goods or services
• Higher fees: Wire transfers typically cost more than other payment methods such as ACH, credit cards, or checks

Wire transfers work best when speed and security outweigh cost considerations, but you must always verify recipient details carefully because reversing these transactions is nearly impossible.

When are wire transfers the right choice for your business?

Wire transfers are the right choice for your business if it encounters the following situations regularly.

• You need to send large sums of money quickly: If you regularly send large sums of money—to your suppliers, for example—and want funds credited quickly, wire transfers are your best option. Credit card payments are unsuitable for large transactions, while paper checks might sustain damage or take a long time to clear.
• You want to avoid lengthy withdrawal times: Wire transfer recipients do not have to wait for funds to clear. As a result, cash flow projection, via financial management software, becomes simple. You can instantly debit your accounts while recipients can credit funds on their books.
• You need to send money to international recipients: If your suppliers are based abroad, wire transfers are the easiest way of paying them. Electronic solutions such as virtual cards are great for small sums, but if you regularly transfer large amounts of cash, wire transfers are a good choice since you won't have to worry about exhausting card credit limits.

Wire transfers are ideal when your business prioritizes speed, handles substantial payments, or works with international partners where immediate fund availability matters most.

Alternatives to wire transfer

Wire transfers are safe and reliable. However, if your business sends small amounts of money regularly or wire transfer fees are too high, you can use other service providers to save money.

Domestic transfers

• Zelle: Zelle works with almost every domestic bank account and credits cash to the recipient's bank account immediately. You can use Zelle even if your bank doesn't have a relationship with it.
• Venmo: Initiating petty cash transfers and paying miscellaneous expenses is easy with Venmo. Like Zelle, the service works with almost every bank account, and funds arrive instantly.

International transfers

• Payoneer: Payoneer offers multiple ways of paying and getting paid internationally. The service helps you send a payment link to your clients or send virtual bank account details denominated in the sender's local currency. For example, you can ask your EU clients to transfer money to a Euro-denominated account even if you're situated outside the EU.
• Wise: Previously called Transferwise, Wise is similar to Payoneer but doesn't offer as many virtual bank account options. Wise does charge the lowest fees, though.

These alternatives can significantly reduce transfer costs for smaller amounts, but wire transfers remain the preferred choice for large, time-sensitive business payments.

Streamline your bill payments with Ramp

If your business regularly sends payments to international vendors, Ramp Bill Pay offers a faster, more flexible way to manage them.

With Ramp, you can send international transfers in either USD or local currencies—without leaving the platform. You can create, approve, and send payments in under 60 seconds, and Ramp automatically syncs everything with your accounting software.

Ramp supports international wires to a wide range of countries through the SWIFT network. For USD transfers, there’s a flat $20 fee. If you're paying in foreign currency, Ramp applies competitive exchange rates with full transparency before you send.

You can also add international vendor details directly within Ramp, including support for intermediary bank routing when needed. While most payments arrive within 1–5 business days, setup is fast and intuitive—no third-party tools required.