Wire transfers allow you to move a lot of money quickly — here's how they work (2024)

A wire transfer is a quick way to safely move funds from one bank account to another, according to the Consumer Financial Protection Bureau. Unlike money transfer apps like Venmo or Zelle, which can be useful for smaller transactions like splitting a check, this electronic funds transfer (EFT) method is commonly used when you move large sums of money, such as for a down payment on a home, according to Citizens Bank.

Ahead, CNBC Select covers everything you need to know about wire transfers, including how the process works, how long transfers take and any potential fees.

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Choose a provider

Before you start the wire transfer process, you need to choose a provider to handle your transfer. You can go directly through your bank, according to the Federal Communications Commission (FTC), or use another money transfer service, like Western Union or Moneygram.

Regardless of which you choose, transfers can take anywhere between a few minutes to a few business days, depending on the size and destination of the transfer. Generally, domestic wire transfers are processed on the same business day, while international transfers are the ones that take a little longer, according to Wells Fargo.

Gather the information

After deciding on a provider for the wire transfer, gather all the information it'll require to make the transfer. In addition to the funds themselves, the FTC explains that you'll likely need the following information:

• Your government-issued ID or online bank account access
• Your bank account number
• Recipient's full name and address
• Recipient's bank account number
• Recipient's ABA number (wire transfer routing number) for domestic transfers; SWIFT code for international transfers
• Name and address of recipient's bank

These requirements may vary from bank to bank and may depend on the delivery method.

Since wire transfers typically can't be reversed, to be extra safe, it's recommended to confirm your recipient's account details over the phone. Also, double-check that you're using the correct routing number —banks have separate routing numbers for wire transfers and ACH transfers (i.e. direct deposits from your employer), according to Stripe.

What is a routing number?

A routing number is a nine-digit code that identifies the financial institution where your account is held. You can find this number on the lower left corner of your checks, bank statements or your online account dashboard, according to the Treasury Financial Experience.

Send the funds

The final step is to initiate the wire transfer. You can do this in person if you use a brick-and-mortar bank, over the phone or online using the bank's website or mobile app, according to Chase Bank. The recipient will receive the money directly into their account or through another delivery method specified when you authorize the transfer. Once a wire transfer is initiated, it generally cannot be canceled or reversed, so confirm that all details are correct, according to Wells Fargo.

After the wire has been sent, you'll receive a receipt confirming the transaction details. It's important to keep this in case any issues arise so that you have proof that the transfer went through, according to the money transfer service Wise.

Regardless of whether you're receiving or sending money, there are often fees associated with wiring money.

Wire transfer fees vary depending on whether the transfer is incoming or outgoing, and whether the transfer is domestic or international. At most major banks, these fees range between $0 and $50, but they vary based on the account you have. Generally, reduced or waived wire fees are offered to customers with premium checking accounts or those with larger account balances, according to Experian.

For example, Bank of America usually charges $15 for incoming domestic wires with checking accounts like Bank of America Advantage Plus Banking®. However, that fee is waived for Preferred Rewardsclients (requires a minimum three-month combined average daily balance of $20,000 in qualifying Bank of America deposit accounts and/or Merrill® investment accounts).

Similarly, standard Chase checking customers, such as those with the Chase Total Checking® account, can be charged up to $50 for wire transfers, but there are no wire fees with Chase Sapphire℠ Checking and Chase Private Client Checking℠.

A wire transfer is much safer than packing cash into an envelope and plopping it in the mail, according to the Island Federal Credit Union. However, like sending cash through the mail, once it's out of your hands, it's very hard to track the money or to get it back, according to Wise.

Wire transfers are commonly used by con artists, according to the Washington State Attorney General. Similar to gift card scams, criminals may pose as authority figures, like a bank or a trusted person, and convince their victims to wire them funds, an almost irreversible payment, according to the FTC.

If a third party joins an email chain between you and an entity you are doing business with and requests a wire transfer, you may be getting phished, according to the U.S. Secret Service. Or, you may be getting phished if a loan service asks you to wire an advance fee in exchange for a guaranteed loan, according to the FTC.

Scams come in all shapes and sizes. The following signs could mean trouble, according to the Office of the Attorney General of Texas:

• You're asked to send someone money unexpectedly
• You're contacted by someone with a weird email address
• You're asked to make payments by wire transfer, cryptocurrency or gift cards

Scammers may try to create a sense of urgency, but the FTC emphasizes that it's important to do your due diligence before sending a wire. One way to protect yourself is by calling the appropriate institution to ensure that any payment request is legitimate. If you accidentally wire money to a scammer, immediately call your bank or wire transfer service and inform them so they can try to stop it, according to the FTC.

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