Wire Transfer

A wire transfer is a transfer of funds done electronically across a network of banks and transfer agencies around the world. Senders pay for the transaction at the sending bank (aka, the remitting bank) and send the funds to a recipient bank.

Wires and ACH transfers are different types of payments. Wire transfers generally cost money, whereas ACH transfers are free or low-cost. Wires are initiated and processed directly by banks, and ACH transfers are instead processed through a clearinghouse. ACH transfers may take slightly longer to process through a clearinghouse, but they are considered more secure.

If you’d like to learn more about the differences between Wires and ACHs, you can check out our article on the topic: “What’s the Difference Between ACH and Wire Transfers?”.