Wire transfers take a relatively short time to go through within Canada but longer if it’s an international wire transfer. Previously, wire transfer was not known in banking. Other mediums were used in sending money from one person to another and one location to another.
One of the ways was to give the money to someone who then delivers it to another. This involved a lot of risk and created breaches in trust.
Later on, the use of checks came up. You could write a check and give someone cash at the bank. This came with its own risk and could be time-consuming. These days, bank wire transfer is the way to go. You can send money in a matter of minutes using a bank wire transfer.
Bank wire transfers have proven to be one of the most convenient, safe, and fastest ways to send money to someone. However, each bank has a unique process and fee involved in each wire transfer.
Unlike the processes involved in moving your money physically from one place to another, wire transfers will give you much-needed peace of mind whenever you need to send money to someone.
It is important to know that wire transfers are different from e-Transfers which can be completed on your mobile app or online. eTransfers are usually quick and take a few hours to complete.
What is a Wire Transfer?
A wire transfer is one of the fastest ways to move money from one individual to another using electronic banking. It is from one person to another and does not involve third parties. Wire transfers are either domestic or international. Which means it can be done within or outside the country.
Wire transfers are completed through a bank. To complete the transfer, you need the recipient’s full name, bank number, address, banking or credit union information, and account information. Once you have all the information, you will need to visit your bank to complete the process.
Even though wire transfers are done using a non-bank provider, they are often completed through a bank.
How long does it take to make a wire transfer?
Domestic wire transfers in Canada can take 4-5 hours from the time you submit a wire request to complete.
However, there are instances where wire transfers can take up to two to five business days. These transfers are not instant because some payments ought to be cleared through the sender and receiver’s bank. The banks also have processes that take time before the wire transfer is completed.
It is important to know that international transfers take a longer time to process than domestic transfers. A domestic transfer could be completed in a day while an International transfer can take several days. This is because international transfers involve more clearance than domestic transfer does.
However, these transfers could be delayed. If the bank sending the funds makes a mistake, the wire transfer may take longer than it should. Wire transfers can also be affected by holidays. If you live in a slow-to-pay country, receiving money via wire transfer should take a while.
There’s typically a $30-50 fee per wire transfer.
How does wire transfer work?
Wire transfers are done through telegraph wires. They involve the electronic movement of funds between different banks and credit unions. It also involves the wiring of money through a non-bank transfer service such as MoneyGram or Western Union.
Wiring of funds is not the actual cash transfer from one financial institution to another. This is because wire transfers are electronic thus banks can complete the transaction. But only if the bank has specific information regarding who the recipient is and how much money he or she can expect to receive. After the transfer, the funds are made available.
Wire Transfer vs. eTransfer
A wire transfer can only be done through a network of banks or financial institutions while eTransfers allow you to move funds from one bank account to another bank account either within the same financial institution or from one bank to another.
Wire transfers are generally faster and more expensive while electronic transfers are more convenient and more secure.
Wire transfer is a secure way of sending money. It involves zero risks in depositing money as long as you have the correct recipient information. You should know however that there are certain fees involved in the use of wire transfer.