Despite closed borders and lockdowns, we continue to communicate online with our loved ones, share their joys and support them in difficult moments. This support is often material: a gift, help with repairs, or tuition fees.
Nowadays, the easiest and safest way to help is to transfer money online. However, not everyone trusts fast money transfer services. Someone thinks that it is unsafe, expensive, difficult, and so on. In this article, we explain what wire transfers really are and how to make a wire transfer!
What are wire transfers?
Until recently, the concept of a “wire transfer” meant the ability to send money from one location to another only by telegraph, post, or a bank office. The fastest of those types of transfers was a bank transfer.
However, the sender and the recipient should have bank accounts for a bank transfer. Other methods, too, had their disadvantages: you had to wait for days for a telegraphic transfer and weeks for a postal money order. International wire transfers were a strictly regulated, bureaucratic procedure that lasted for months.
The situation changed dramatically when the internet and online money transfer systems came around. Finally, they offered a progressive and convenient answer to the question “How to make an online wire transfer?”.
How wire transfers work
So, a money transfer is a transfer by one person to another, usually through some particular money transfer system and without opening a bank account.
Any money transfer system includes three components:
- A list of countries where you can send money and where you can receive money,
- Wire transfer time.
Basically, the rules for making transfers are identical for all systems since these operations are clearly regulated at the legislative level.
In any money transfer system, money can be sent only within one system. You can send money only to that country or city where agents or representatives of this system are. Wire transfer limit is also a thing.
How long does a wire transfer take?
Wire transfer time depends on 2 factors:
- The country of the sender and the country of the recipient. Depending on the countries and currencies involved in the transfer, it can take up to 2 business days to process the payment. However, this is quite rare. The transfer speed also partly depends on how quickly the recipient’s bank processes the payment.
- Payment method. Some payment methods are faster than others. For example, card payments are processed instantly, while bank transfers take longer. But when choosing a payment method, you will be shown the approximate waiting time for each of the proposed methods.
Wire transfer cost
Can you make a wire transfer online with minimal commission? Transactions are taxed… Wrong!
No, transfers between individuals are not taxed. In fact, sending a money transfer online to your loved ones is the same as handing them money in person.
Here is a list of wire transfer fees you should be aware of:
- Money transfer fee
This is what you pay for every completed transaction. The amount is usually indicated in advance when you read about the service or make a transfer.
The fee can be a fixed amount or a percentage of your transaction and may vary depending on the amount you are sending, the method of sending funds (i.e., delivery time), or the type of card used.
- Exchange rates
Not all services use the same exchange rates, but most, if not all, publish their exchange rate. Don’t forget to check and compare service rates if you need to exchange currency frequently.
- Currency exchange fee
This can be a high cost if you are making an international bank transfer in another currency, but the fees for using money transfer services and applications will still be lower.
Are wire transfers safe?
As safe as it gets! Wire transfer business is licensed. To get a license, companies must take a set of safety measures, including multi-level data encryption. Therefore, making an online transfer is safe for both the sender and the recipient of funds.
Can you make a wire transfer online safe and fast? Definitely, yes! As you can see, there is nothing complicated, risky, or illegal about wire transfers. The main thing is finding a reliable payment system to which you entrust your money.