What Is a Wire Transfer?

A wire transfer moves a single payment directly between two banks and settles it immediately, one at a time. There is no batch and no queue. That is the entire difference from everything else, and everything else about wires follows from it.

How it settles

Domestic wires run over one of two systems. Fedwire, operated by the Federal Reserve, settles each payment individually and finally in central bank money. CHIPS, operated by The Clearing House, nets payments between large banks through the day and settles the balance. Either way, the outcome for you is the same: the money is with the recipient's bank on the same business day.

International wires are a different animal. SWIFT is a messaging system, not a payment network — it carries the instruction while the money moves through a chain of correspondent banks that hold accounts with each other. Each hop can take a fee and a day.

What you need to send one

• Recipient's full legal name and address as held by their bank
• Their bank's name and routing number (or SWIFT/BIC code internationally)
• Their account number, or IBAN in most of Europe
• Photo identification, if you are sending in branch

A name that does not match the account can delay or bounce the wire, which is a small mercy: it is one of the few checks in the process.

Cost and cutoffs

Fees vary by bank and are often waived at higher account tiers, so check your own schedule rather than trusting a range. On international transfers the exchange rate margin is usually larger than the fee.

Every bank sets a daily cutoff, commonly early-to-mid afternoon local time. Miss it and the wire goes the next business day. Wires do not move on weekends or federal holidays.

Why you cannot get it back

A completed wire is final. Article 4A of the Uniform Commercial Code, which governs commercial wire transfers, is built around that finality — it is what makes wires trustworthy for closings and large purchases.

A recall can be requested, but it is a favour, not a right. Your bank asks the receiving bank, which asks its customer, who can refuse. If the money has been moved on, there is nothing to return.

The verification step that matters

Wire fraud is overwhelmingly one attack: someone compromises an email thread about a real transaction — a house closing, an invoice — and sends updated account details just before payment is due. The details look plausible because the rest of the message is genuine.

Call the recipient on a number you looked up independently and read the account number back to them. Not the number in the email signature. This single step defeats nearly all of it, and skipping it is how people lose deposits.

Related

Compared with the cheaper options: ACH vs wire vs Zelle and what ACH is.

International wires need a SWIFT code.

Common questions

How long does a wire transfer take?

Domestic wires usually arrive the same business day, often within a few hours, provided you send before your bank’s cutoff. International wires typically take one to five business days depending on the correspondent chain.

How much does a wire transfer cost?

Commonly $15 to $35 to send domestically and $35 to $50 internationally, with incoming fees of $0 to $15. Banks set their own schedules and often waive fees on premium accounts.

Can a wire transfer be reversed?

Not unilaterally. Your bank can request a recall, but the receiving bank needs its customer’s cooperation to return the funds. If the money has already been withdrawn, recovery is unlikely.

What is the difference between Fedwire and SWIFT?

Fedwire is a domestic payment system that actually settles money between US banks. SWIFT is an international messaging network that carries payment instructions; the funds themselves move through correspondent banks.

Do wires work on weekends?

No. Fedwire and CHIPS operate on business days only, so a wire sent Saturday is processed the next business day.