Money Wires - A Fast Way To Transfer Money

These days, sending money can be done in other ways rather than physically handing it over to another person. One of the most often utilized means is called money wire. It is more commonly referred to as credit transfer or wire transfer, and has become a practice used not only by individuals, but institutions as well. People like it because it is very easy to do - you can simply transfer money from one bank account to another, and the money can be cashed out in a cash office.

The process of money wiring has a few simple steps. You start out with the most basic kind (and the kind that is most utilized by others) which is the bank wire transfer. They say this is the most expedient method. You start out by having someone go to the bank and place an order to have funds transferred in a specified denomination. The usual codes include IBC and IBAN, and these are assigned so that the bank will know where they need to transfer the money to. Second, the bank will send a message through secure systems (for example, Fedwire or SWIFT) to the bank where the money will be transferred so it may request for the payment based on the given instructions.

The bank will also need to include a message which will contain further instructions about the settlement. It should also be known that the actual transfer itself is not really instantaneous, and that it will probably take several hours (and quite possibly, days) until the funds have been moved from the account of the sender to the account of the receiver. For instance, you hear sometimes that a transfer to the USA from UK can sometimes take 48 hours or more to arrive in the receievers bank. And finally, both banks will need to come up with reciprocal accounts together, otherwise the payment will then be sent to another correspondent bank account until it gets to the recipient.

Collecting Payments

Of course, the banks will then need to collect some form of payment for such a service. It will collect the payment from both the person who sent the money and the one who received it. Usually, the bank where the money was sent from will collect a separate fee and not part of the funds that were transferred. The receiving bank, on the other hand, will deduct their fees straight from the money that was transferred. In effect the receiver gets less than the amount that was originally sent.

For a lot of people, they consider the money wire method as a very safe and secure means to send money either locally or international. You are not in any danger of being spotted carrying a lot of money, and it is also something you can do without leaving your desk or spending the whole day at the bank. It surely allows you save a lot of time, which also means less hassle for you and the person who will be receiving the money. In today's e-commerce industry, this is also one of the most preferred means of paying and also getting paid.

Learn More

Providing the latest Foreign Exchange rates and information for the UK.


Money Transfer

Live Currency Rates

Live Streaming Quotes

Popular Charts

Exchange Rates