Funny about Money

The only thing necessary for the triumph of evil is for good men to do nothing. ―Edmund Burke

How Bank Transfers Really Work

The first thing you need to know about a bank wire transfer is that it is a safe, credible, and efficient way of instantly transferring money from point A to point B. For many folks, wire transfers are the first choice for making international payments. It is quite fascinating how bank transfers work. Typically, a wire transfer sends money from one credit union to another, or one bank to another using the Fedwire network or the SWIFT network.

The Fedwire network was previously the Federal Reserve Wire Network. It is a funds transfer system from the US Federal Reserve that allows electronic funds transfers between thousands of banks. The SWIFT network is otherwise known as the Society for Worldwide Interbank Financial Telecommunication. It is a payment network with 10,000 financial institutions across over 200 countries. Most SWIFT members are comprised of banks and financial institutions. All SWIFT members must have a valid Banking License.

Quick and Easy Ways to Send Money: Wire Transfers

Typically, a bank wire transfer is one that takes place between banks. Other money transfer methods are also possible, including alternative electronic payments options or money transfer services. For the most part, any funds that are sent from one bank to another are completed within 1-2 business days. In the United States, it is possible to receive money on the same day. All forms of international money transfers take a little longer to complete. There is usually no hold on any money that is deposited into an account via a wire transfer.

The funds move rapidly from one bank to the next, and the recipient will have instant access to the money. Of course, it depends when the wire transfer is submitted. It is possible that a few hours may go by before the receiving bank displays the proceeds from a wire transfer in the recipient’s bank account. If any delays take place, a simple call to the bank can resolve queries about wire transfers.

No Anonymous Wire Transfers in the US and Other Developed Nations

Getting started with a wire transfer requires the submission of specific instructions to the sending bank. This includes the amount that you would like to send, and all details of the recipient’s bank account. Nowadays, wire transfer services can be completed online, but many banks still require authorized signatures and paperwork.

As a recipient of a wire transfer, it is imperative that you provide the sender with accurate details for the transfer. The average fee for receiving an incoming wire is $10, while the average fee for sending a wire transfer is $40. Whenever credit cards are used for wire transfer services, there are additional fees tacked on at a higher rate.

The most cost-effective way to send a wire transfer is directly from a checking account. All wire transfers must be fully regulated, verified, and authorized by the sending and receiving bank. Both parties must have a bank account for a wire transfer to take place. Both parties must have a verifiable address, telephone number and ID.

Anonymous banking is impossible in developed countries like the United States, so all money that moves around is traceable every step of the way. Safety and security are always high on the agenda when sending money to a recipient. IDs must be verified and account numbers checked for accuracy.

Debits, Credits and FX Options

When you are ready to send money abroad, it’s important to understand how international wire payments work. The first bank will debit the sender’s account by the amount which he/she is sending. That same bank will then credit the recipient’s bank account by the same amount. The receiving bank will then credit the recipient’s account with the amount of the wire transfer. In the above example both banks have an agreement in place between them. This makes it easier for them to debit/credit accordingly.

Sometimes, there is no existing agreement between banks and they will have to use a fourth party to broker the agreement. The more middlemen there are, the greater the complexity. Besides SWIFT, there are other payment services such as FPS, Chaps, and Fedwire. The costs of transferring money with different services will vary dramatically. Various Forex exchange services make it much more affordable to transfer money quickly from sender to recipient. It behooves clients to research all options for the best deals.

Wire Transfers Are Reliable Ways to Send and Receive Money

Note that a bank will not process a wire transfer unless the sender has the funds available. In this vein, receiving a wire transfer is usually safe. Once money has been transferred, it is near impossible for the sender to withdraw the wire request. It is in this interim period of transfers being made and funds actually available that fraudsters ply their craft.

Always wait for funds to clear before goods or services are provided, or receipts of payment are made. Besides for bank wire transfers, there are several other forms of money transfer that take place including automated clearing house transfers (ACH), money transfer services, and various third-party providers.

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Author: funny

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