Wire transfer

When you need to send or receive an amount of money quickly, a bank transfer can be the right tool for this task. Bank transfers are fast , reliable, and generally very secure . Commonly, when someone requests to make a “wire transfer” , what they really need is to be able to transfer money in the traditional way from bank to bank.

What is a bank transfer?

bank transfer is a type of money transfer that is made by order of a customer. This money comes from your bank account and will go to another account that has been designated by the client, which in this case is known as the beneficiary .

  • Characteristics of the bank transfer
  • Source
  • History
  • What is it for
  • How a bank transfer works
  • Types
  • How to do it
  • Cost
  • How long it takes
  • Advantages of bank transfer
  • Disadvantages
  • Importance

Characteristics of the bank transfer

Among the main characteristics that can be observed in bank transfers are the following:

  • The bank transfer consists of transferring money from one account to another .
  • The person requesting the transfer is known by the name of the originator .
  • The person who receives the money is known as the beneficiary .
  • Transfers that are made in the same entity are known as transfers .
  • It is common that, at the time of making a bank transfer, the entity charges a small amount of money as a type of commission .
  • They can be classified depending on the term , the execution and the geographical area where the money is sent.


Money has been a part of human history for the last 3000 years. For most of history, banks and financial institutions have existed alongside money. However, as the world moved towards industrialization and globalization we witnessed a completely new way of sending and receiving money. Wire transfers originated in the 19th century and have since become one of the most successful methods of transferring money around the world.


The history of bank transfers begins in the 19th century, in 1872 when a service began to be used to make this type of transfer. It was thanks to the company known as Western Union that the telegraph network was established so that these money transfers were possible. Using several code books and a series of passwords , a telephone operator managed to wire money that the customer had paid in one office to send it to another where it was paid to the customer who was to receive it.

In 2009 a regulation was created by the European Union in order to regulate payments where it was established that a higher cost could not be established in national transfers regardless of the currency used. However, this is not applied throughout the world because in places like the United States this type of transfer turns out to be very expensive.

What is it for

A bank transfer is a process that is used to send monetary funds from a specific account to another that will receive the money, either from the same bank where the procedure is carried out or to another bank.

How a bank transfer works

From the point of view of the sender, the process is relatively straightforward. Simply go to the bank branch , speak to a teller, and follow their instructions . You can also access your bank account online and complete the bank transfer there. But what actually happens when you ask to move your funds goes further.

Basically, after the sender pays for the transaction at his bank, the sender bank sends a message to the recipient’s bank through a secure system, including all the necessary information to make the transfer. The recipient’s bank will then deposit their own funds into the account , and the banks settle the payment, thus completing the wire transfer. All banks and financial entities have codes and conventionsdifferent to make bank transfers. Typically, the following information is required to send and receive a transfer:

  • Full name and address of the recipient
  • Full name and address of the recipient’s bank
  • Transfer amount
  • Reason for transfer
  • Recipient’s account number and account type
  • Recipient’s routing number
  • IBAN account (if applicable)


There are two main types of bank transfers which are:

  • Transfer : this type of transfer is considered an internal transfer , and it is the one that occurs within the same bank when the client has several accounts with the same entity and needs to transfer an amount from one of their accounts to another. It has an automatic effect and is free .
  • Transfer : this banking operation is made between the accounts that are of different banking entities . This type of transaction generates commissions which depend on the location, the total amount and the bank. According to the geographical area, these transactions can be divided into:
    • National : they are given when the money is sent within the country.
    • Foreign : they are known as cross-border and they occur when the money is sent to another country.

In addition, transfers can also be classified depending on the execution period , in this group we find:

  • Ordinary : they are carried out within a period of one to two business days.
  • Immediate : although they have a lower cost, they can last no less than ten minutes.

How to do it

To make a transfer bancara first is due to attend an entity bank , once in place, it calls for a certain sum of money is made. The accounts and the IBAN account are provided so that the bank knows exactly where the money will be sent . Then, the bank that is making the transaction is responsible for sending a secure message to the bank that will receive the money.


The costs to make a bank transfer may vary from one entity to another. Costs range from $ 2 to $ 25 in places like the United States. However, if the user carries out the transaction between their own accounts , the transfer has no cost . Some online banks also do not charge for this type of transaction and when money is sent in foreign currencies the cost will also depend on the bank.

How long it takes

The length of time for a bank transaction to become effective will always depend on the type of operation that is carried out. In this way, when the operation is carried out between the owner’s accounts, its duration is null, in other words, it is immediate . When the transfer is made between banks or different financial entities , these can last up to 24 hours . In the case of international money transactions , the issuer’s money is reduced immediately, however, for the receiver to be able to withdraw the money, it will take several business days , approximately five business days.

Advantages of bank transfer

There are several advantages that a banking customer can obtain when conducting a banking transaction, among them the following are mentioned:

  • When the transfer is done between the accounts of the creditor , you need no waiting period for cash.
  • The transfer process only takes a few minutes.
  • They are generally very fast and also safe .
  • With them it is possible to avoid robberies or be victims of assaults .
  • Currently, some ATMs give the option of making bank transfers, thus avoiding lines within the entity.


Some of the disadvantages of bank transfers are:

  • Sometimes they can last more than 24 hours to be effective.
  • They can generate some types of commission depending on the type of transaction that is carried out.
  • International bank transfers can take up to five days.
  • Some banks have a limit amount to carry out bank transactions.
  • Depending on the type of transaction and the amount, commissions may occur


Bank transfer is one of the most important and used methods among bank customers as a simple and most of the time fast means by which money can be transferred from one account to another. It is possible to send money safely either nationally or internationally. It is also one of the methods most used by companies to make payments to workers, which gives them greater ability to make deposits in a more orderly manner. It is also important for savings , since the client can have more than one account where they can deposit their money quickly and easily.

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