What is a wire transfer? | OFX (UK) (2024)

FAQs

What is a wire transfer? | OFX (UK)? ›

Wire transfers are an electronic method of sending money from one party to another. It's one of the most efficient ways to transfer money overseas, because a wire transfer is a bank to bank transfer. When speed is crucial, a wire transfer is a good option.

Wire transfers are electronic transfers that allow you to send money directly from one bank account to another. These transfers can be done locally or internationally and typically occur within the same business day. Bank transfers are a more general term for any funds transfer between bank accounts.

Domestic wire transfers are generally used to send funds from one UK resident to another. These transfers can be fast, as they don't require currency exchange or cross-border regulations. They are ideal for quick, large-sum transactions within the UK.

Generally, if you request a transfer before your bank's cut off date, an international wire transfer typically should arrive within 1-5 business days. In some cases, receiving an international wire transfer can take longer, but more on that later.

In theory, it can refer to both domestic and international money transfers, but wire transfers are much more commonly used for transfers abroad, as local bank transfers are the superior options in terms of time and cost savings. The term “wire transfer” is often synonymously used for the SWIFT network.

Wires are used for large payments between bank accounts, such as the down payment on a new home – and you can send a wire transfer in the US or overseas. In comparison, Zelle is an ACH. This stands for Automated Clearing House, an electronic network that lets you move money between US banks.

Generally, international wire transfers are not as fast as domestic transfers. While domestic wire transfers can be completed within one business day, international transfers typically take one to five business days, and they can take longer depending on a variety of factors.

You can carry out the transaction online using a debit card, credit card or bank transfer, and you'll need the US recipient's details too. On the high street: Services such as Moneygram and Western Union have their advantages – but they are not a cheap way to send money from the UK to the US.

Is there a limit on international wire transfers? ›

How much money can you wire without being reported? Financial institutions and money transfer providers are obligated to report international transfers that exceed $10,000. You can learn more about the Bank Secrecy Act from the Office of the Comptroller of the Currency.

Domestic wire transfers are typically faster than international wire transfers due to the involvement of fewer financial institutions. International SWIFT transfers can take 1-5 business days to complete, depending on the countries involved, intermediary banks, and currency exchange processes.

Average wire transfer fees

Wire transfer fees have a wide range – from $0 to $50, depending on how and where you're sending the money. Domestic outgoing wire transfer fees typically range from $0 to $35, while international outgoing wire transfer fees are usually $35-50.

You can usually initiate a bank-to-bank wire transfer in person at your bank or financial institution's local branch or through your online bank account. You'll usually need to provide the recipient's full name, contact information, and bank account details such as routing and transfer numbers.

Average wire transfer fees

Wire transfer fees have a wide range – from $0 to $50, depending on how and where you're sending the money. Domestic outgoing wire transfer fees typically range from $0 to $35, while international outgoing wire transfer fees are usually $35-50.

Automated Clearing House (ACH) An Automated Clearing House (ACH) authorization is a payment authorization that gives the lender permission to electronically take money from your bank, credit union, or prepaid card account when your payment is due. You can revoke this authorization. Remittance transfer.

There are two types of wire transfers – domestic and international. Each of these wire transfer types varies in cost and delivery times. Domestic wire transfers get processed within the same day.