Wire Transfer Procedure

There are many steps involved in the process of Bank wire transfers that are regarded as most convenient method for transferring funds between different bank accounts. It is very fast and completely hassle free process. You are not required to stand in long queues and fill out various slips for requesting the transaction. Best part is that you are not required to even visit the bank of the branch that might be located far away from your place. You can do wire transfer from the comfort of your home if you have an internet connection and a PC.

A bank wire transfer involved the following procedures:

Wire Transfer Procedure Customer who wants to transfer the funds via wire transfer needs to get the net banking facility activated on his account. For that he needs to visit the branch of his bank and fill up the request for that along with proof of identity, photograph and other docs. Once your request is approved, you will be sent the net banking login Id and password to your registered postal address. You can affect the wire transfer by simply login to the site and following the instructions.

If you do not have a PC or net connection at home, you can approach the branch of your bank and gives order to the bank for transferring a certain amount of money. The IBAN and BIC codes are required so that bank comes to knows where to send the money.

Once the required information is submitted, the sending bank transmits a message to the receiving bank via a secure system (such as SWIFT or Fedwiro care). It requests to make the payment as per the instructions provided. This message includes settlement instructions and the actual transfer of funds may take few hours to even days.

The sending and receiving bank must hold a reciprocal account with each other. Banks apply the charges for sending as well as receiving the money via wire transfer from the sender as well as from the recipient.

How to Do Wire Transfer

A wire transfer is a process of transferring the money from one bank account to another. This process is very secure and safe. During the actual transfer of money, the procedure is done electronically and hence the sender and receiver do not see it happening actually.

Steps for transferring money from one account to another.

How to Do Wire Transfer (1) You should contact your bank branch by making call to them. Alternatively, you can also contact them via Internet and offer the following information including the recipient person’s name or firm name you are wiring money to, the recipient’s account number, the bank’s American Banking Association (ABA) routing number, the address and phone number of the bank. One can get the details about the routing number by contacting the recipient’s bank. You should also mention the person’s name who will address the questions.

(2)You should determine the amount of money you are going to send by wire and also decide upon the estimated time frame when it is received in the recipient’s account. You should complete the wire transaction through your bank. There are some banks that permit you to initiate the transaction over the Internet. There are some other banks that need you to contact them by phone or fax for initiating the transaction.

(3)Once the transaction is done, you should get the confirmation that it has taken place. You can ask for a faxed or e-mailed transfer confirmation. Moreover, you can also contact the receiving bank for confirming the receipt of funds.

You should ensure that the information provided by you to the bank for initiating the transaction should be complete in all respects and should have minimal errors. The time frame of wire transfer is not fixed and it can transfer funds in a day or few days. You should also check that there are sufficient funds in the account for making the wire transfer. You should also enquire about the various charges applied by the banks for the wire transfer.

Advantages of Wire Transfer

The advent of wire transfer has led to the many advantages over the traditional money transfer processes. It can be done easily and quickly. Moreover, it is very secure option. It answers the need of fast and quick payments of the today’s world where timely payments helps in smooth running of many businesses processes. In many cases, it helps in avoiding the delay in making the payments of salary and other bills. Thus, it provides the distinct advantage over the check or Demand Draft which takes lot of time. The wire transfers options prove to be very effective in all these cases. It is not only the fastest mode of wire transfer, but also the secure and safe option.

Some of the major benefits of associated with wire transfer money can be summarised as follows:

Advantages of Wire Transfer (1) Acts as the fastest mode of transferring money to the recipient.

(2) It does way with the charges of services that transfer the cash money to your recipients. There is no need to carry cash and only requirement by both sender and receiver is to have a bank account.

(3) Can be used worldwide across the globe in various countries. It is an ideal option that suits many people who are residing in foreign locations and need to remit money to their home countries.

(4) No extra charge for making local wire transfers

(5) Small transaction fees on international transfers

(6) Allows the transfer of money across the border. In majority of the cases, the recipient gets the money in destination country within a day time.

(7) As the money transfer is very quick so it does not get much affected by the fluctuations in the exchange rates.

(8) It has been proven to be a much safe and secure mode of transfer.

Top Five Wire Transfer Companies

There are many wire transfer companies world over that offer the various kinds of payment services including wire transfer, money order, cheque deposits and others.

Some of the well known wire transfer companies include the following.

Western Union Western Union – It offers the fast, secure and convenient ways to the consumers so that they can send and receive money throughout the world. It also helps in sending payments and purchasing the money orders. It is operating via a network of approx 430,000 agent locations in over 200 countries.

It offers consumer to consumer, consumer to business, business to business and other services.

MoneyGram – It is second largest Wire Transfer Company of the USA and offers the affordable and reliable payment services. It is operating into more than 203,000 locations across 190 countries. It has been offering the efficient services since past 70 years.

PayPal – PayPal is the easier and secure way of making payments and getting paid online. This service allows the user to make payments via buyer credit or account balances, credit cards, and bank accounts. It is secure and does not share financial information. It is renowned company that has received over 20 awards from the Internet industry and the business community. One drawback of Paypal is that it requires your receiver to have an online account.

Xoom – It is an online international money transfer service that provides fast and secure way of sending money from the website to the recipients in more than 30 countries. It offers many options and is convenient to use.

iKobo : iKobo was established in 2001 and it provides safer and economical solution for making international person-to-person money transfers. It forms a part of the M2 Global Ltd that is a suite of financial products for consumers and businesses.

International Transfers

The SWIFT system is an abbreviated form of Society for Worldwide Interbank Financial Telecommunication. It is employed in the large number of international transfers. This system was initiated by seven banks in 1974 that have network all across the globe. It has a worldwide network for facilitating the transfer of financial messages. The exchange the data with help of these financial messages is used by the banks for transferring the funds between various financial institutions.

Society for Worldwide Interbank Financial Telecommunication SWIFT is being sanctioned by the United Nations as International Standards Body for the maintenance and creation of the financial messaging standards. Each institution of finance is provided with a SWIFT code that is 8 characters Bank Identifier Code. For example, the SWIFT code for the Deutsche Bank primary office is DEUTDEFF where DEUT is used for identifying the Deutsche Bank, DE is code for Germany and FF is the code for Frankfurt.

In USA, the banks are using the SWIFT for making payments to the banks in countries other than United States. There are certain International Outgoing Wire Transfer Guidelines that requires the customer to have an account in a bank for sending a wire. It maintains that the receiving bank should be contacted by call for receiving the accurate wiring instructions. As a customer, it is the responsibility of the person for providing the proper wire transfer instructions to the sending bank.

The International wire transfer is basically a long and uncertain process that may extend from two days to many weeks for arriving at their destination. Your bank does not have any control over the time frame for receiving the wired money. In case the international wire is recalled then also the funds are recalled after two days to many weeks. Moreover, the corresponding banks will also charge the fees for recalling the transfer of funds.