A wire transfer is an electronic transfer of funds from one person or entity to another. It allows money to be moved quickly and securely without the need to exchange cash. Wire transfers can be made from one bank account to another bank account, or through a transfer of cash at a cash office. Different wire transfer systems and operators provide a variety of options relative to the immediacy and finality of settlement and the cost, value, and volume of transactions. Wire transfers are most often used to transfer funds from one bank or financial institution to another. No physical money is transferred between banks or financial institutions when conducting a wire transfer. Instead, information is passed between banking institutions about the recipient, the bank receiving account number, and the amount transferred.

Wire transfers are common for both domestic use in the U.S. and international use. They are popular for international transfers because they are easy to exchange to a foreign currency, if needed. Wire transfers allow for the individualized transmission of funds from individuals or entities to others while still maintaining the efficiencies associated with the fast and secure movement of money. Wire transfers also allow people in different locations to safely transfer money to locales and financial institutions around the globe.

Wire transfers can be facilitated by a bank (sometimes referred to as a “bank wire”) or by a nonbank money transfer provider. Wire transfers allow the sender to initiate a transfer quickly and the recipient can access the funds immediately as there are usually no bank holds on the money. Wire transfers are often used to pay invoices, to send funds among family, or for real estate transactions.

When you transfer money from one bank or credit union account to another within the United States, it’s likely done through a domestic wire transfer. Wire transfers can be expensive, and fees vary according to provider, destination, and the dollar amount transferred.