Getting To Know Wire Transfers


Sending money online has never been easier before now, thanks to the advent of technology and the introduction of the wire transfer system. More commonly referred to by many as the EFT or the electronic funds transfer, this system relies on computer technology in order to proceed with the different kinds of financial transactions performed on an electronic scale. The term wire transfer may be used loosely, but it refers to several methods under its umbrella. Simply put, it's the best way to transfer money overseas securely.


First, the term wire transfer is used to refer to payments made by a cardholder using a payment card in order to initiate several types of financial transactions.


Second, wire transfer may be used to refer to payroll payments, where direct deposits are made to pay for the salaries of employees in a business (most probably with the help of a company specializing in payroll services).


Third, you can also use the term wire transfer to refer to direct debit payments - payments which customers make to the business they transact with, and that the transaction itself is initiated by the said business along with the permission of the customer.


Fourth, is also connected to the online banking method of electronic bill payment, which you can deliver by either paper check or electronic funds transfer.


Fifth, a wire transfer is commonly associated with the entire web of international banking and networking, where fees are very much higher since the amount or the denominations of money being sent are too big and too unsafe to do so using other means.


Sixth, wire transfer is actually the same as EFTPOS, which is the same as 'electronic funds transfer at point of sale', which is an electronic processing system popularized by New Zealand and Australia through the use of debit cards, charge cards and credit cards.


The wire transfer method may also be used by a cardholder when he is at any of the following: an ATM or an automated teller machine or a POS or a point of sale service. For as long as he has his debit card or his credit card, he can already perform wire transfer by swiping his debit card onto the point of sale machine to deduct the amount or to key in his password into the ATM machine in order to facilitate the fund transfer. These two means are just some of the easier ways in which wire transfer services reach out to others and make it easier for them to pay efficiently.


Authorization of the Transaction


When it comes to the authorization of wire transfers, the transactions will require the communication of several parties to transfer money. One, when a debit card or an ATM is swiped, the initial request for the transaction goes through the acquirer. Second, it passes through the issuer where the account of the cardholder is held. And finally, the place where the payment is being made is alerted and issues an acknowledgement slip in order to see the end of the transaction.


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