Moving money from one bank account to another is often as simple as a few taps within your banking app. While this works well for transfers between your own accounts or reimbursing a friend for dinner, other scenarios may require a peer-to-peer (P2P) wire transfer instead.
P2P wire transfers enable you to send money to a person with a bank account both domestically and internationally. They’re sometimes preferred for large transactions or when you need the money to arrive quickly.
But what do you need for a P2P wire transfer? You’ll need some required information about the recipient and their bank account. By gathering the necessary details in advance, you won’t have any delays in sending money to its destination.
Let’s take a closer look at those necessary details, as well as how sending money with Western Union can often be an easier and faster option.
How P2P wire transfers work
A P2P wire transfer moves money between bank accounts. This type of transfer is typically initiated at a traditional bank, but other financial institutions may also offer them. Wire transfers are a secure and fast way to send money domestically or internationally, so they are often preferred for large transactions or international transfers.
Two banking institutions are involved: the sending institution (where the money comes from) and the receiving institution (where the money goes). If you’re wondering , there are a few steps involved:
- Initiation: You execute the wire transfer at your bank or through a financial service provider that offers them.
- Verification and clearing: The sending institution verifies that the sender has the funds available in their account.
- Crediting: The sending institution sends instructions to the receiving institution. The receiving institution credits the recipient’s bank account with the money, making the funds available.
- Settlement: The two financial institutions settle the transaction later by transferring the money from the sending institution to the receiving institution.
In a wire transfer, the receiving institution hasn’t yet received funds from the sending institution when the recipient’s account is credited. The receiving institution uses its own reserves to make the funds available. That’s why wire transfers can be faster than other money transfers.
What information is needed for a P2P wire transfer?
As a sender, you’ll only be involved in the first step of a wire transfer: initiation. It’s important to understand what information is needed for a wire transfer. This will vary depending on whether you’re sending a or an international wire transfer. Banks and money service providers require at least the recipient’s bank account information so they know how to credit the transferred funds.
What information is needed for a domestic P2P wire transfer?
Within the US, wire transfers are managed by the Federal Reserve through a network known as Fedwire. This standardized system makes it easy to send money from one US bank account to another.
The information needed for a wire transfer within the US, also known as a domestic transfer, is as follows:
- The recipient’s name, address, and phone number
- The routing number of the receiving bank
- The recipient’s bank account number
- The account type (such as checking or savings)
You can initiate a wire transfer in person at your bank or a money service provider. In some cases, you can also initiate a wire transfer online if your bank allows it. Domestic wire transfers typically settle within one to three business days.
The transactions are also highly secure. Wire transfers use encryption technology, and both banks require specific information about the parties involved. By providing the recipient’s routing number and account number, it ensures the legitimacy of the transaction. Your bank or money service provider will verify your identity before initiating the transaction.
What information is needed for an international P2P wire transfer?
With international wire transfers, the route from the sending institution to the receiving institution is less straightforward. Each country has its own banking systems, which must be connected.
Most international wire transfers are handled by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). As a messaging system that enables fast and secure cross-border payments and financial communications between banks and financial institutions, SWIFT ensures transactions are handled securely and accurately—whether you’re sending money from the US or any other country. It’s the largest system for international payments.
The information needed for an international wire transfer is as follows:
- The recipient’s bank name and bank address
- The receiving bank’s SWIFT/BIC code (BIC stands for business identifier code)
- The recipient’s name, address, and phone number
- The recipient’s international bank account number (IBAN)
- The bank account type (such as checking or savings)
You may also need a routing number or routing code for certain countries. Your bank or money service provider will prompt you for this information.
An IBAN identifies the individual account within a bank. It consists of a country code, some bank-specific codes, and the account number within the bank.
What information is needed to receive a P2P wire transfer?
You should also understand what information is needed to receive a wire transfer. The sender will need this information from you to initiate the transaction.
For both domestic and international wire transfers, you’ll need to provide the following:
- Your name and address, as it appears on your account
- Your account number
- Your account type (such as checking or savings)
- Your bank’s routing number
If you’re receiving an international wire transfer, you’ll also need:
- Your bank’s address
- Your bank’s BIC code for SWIFT
- Your IBAN
You should contact your financial institution to obtain this information.
Whether you’re sending or receiving a wire transfer, you must ensure that you provide complete and accurate details. For example, the name and address must accurately match the account holder information the bank has on file.
Ensure you have all the information needed for a wire transfer before sending or receiving to avoid delays.
An easier alternative: Sending money with Western Union
While conventional bank wire transfers can help you send money securely, they have some limitations. The sender and recipient must have a bank account for it to work. The recipient also has to receive the funds in their bank account.
Sending money with Western Union can often be an easier and faster option. Unlike a bank wire transfer that moves money between bank accounts, Western Union acts as an intermediary between the sender and recipient. This can provide a lot more flexibility.
You can send money to family or friends online, through our app, or at one of our many agent locations worldwide. The recipient then has several options for receiving the money—they can pick it up as cash at an agent location, have it deposited into their bank account (depending on the country), or even receive it in their mobile wallet (depending on the country).
FAQs
What information is required for a P2P wire transfer?
The information required depends on whether the transfer is domestic or international. For a domestic wire transfer, you’ll need the recipient’s contact information, bank account number, routing number, and bank account type. You’ll also need the bank SWIFT/BIC number and the recipient’s IBAN for an international wire transfer.
What information should accompany a P2P wire transfer?
You need to have complete and accurate information for a wire transfer, including the recipient’s full name and address as it appears on the bank account. You’ll also need to know the recipient’s account type, such as checking or savings.
How do you prepare for a P2P wire transfer?
Before initiating a wire transfer, ensure you have complete and accurate information about the recipient. This includes a full name, address, phone number, and bank account information. If you are receiving a wire transfer, you’ll need to provide your bank account information to the sender. You can initiate a wire transfer online or in person at a bank or money service provider.
