What Is Wire Transfer?

Definition
An electronic transfer of money between banks, often used for large amounts or international payments. Usually processed the same day but may have fees ($15-$50).

Example: "I used a wire transfer to send the $5,000 down payment to the real estate company."

Why It Matters

Wire transfers are the fastest way to send large amounts of money between banks. Unlike ACH transfers that take days, domestic wire transfers are typically completed within hours, and international wires within one to two business days. The speed comes at a cost: fees range from $15 to $30 for domestic wires and $35 to $50 for international wires. Because wire transfers are fast and generally irreversible, they are a favorite tool of scammers. Never wire money to someone you don't know, and always verify wire instructions through a phone call before sending.

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