A wire transfer is an electronic transfer of funds between financial institutions, often through a specialized wire network. It is commonly used for large, time-sensitive, or international payments.
The sender’s bank transmits payment instructions to the recipient’s bank, sometimes through intermediary institutions. Depending on the countries and systems involved, the transfer may use networks such as Fedwire, CHIPS, or SWIFT messaging alongside separate settlement arrangements.
A wire transfer differs from a card purchase and from an automated clearing-house payment. Wires are often fast and difficult to reverse after completion, so customers should verify the recipient’s account details carefully. Fees, processing times, and availability vary by bank and jurisdiction.