Wire Transfer and traditional bank transfer: the differences
Do you want to know how Wire Transfer works and what the difference is with a traditional bank transfer? In this article we will compare Wire Transfer and traditional bank transfers to show you how they work, so that you can decide which option is best for you.
Both options, in fact, have pros and cons: knowing the differences between the two can help you decide which one is best for your needs. This may depend on several factors, including:
- Whether you want to transfer money as a company or an individual
- The amount to be sent
- The country where the money is to be received
How the money transfer should take place Wire Transfer: what is it?
A Wire Transfer is a form of electronic payment that allows you to transfer money directly from one bank account to another. With Wire Transfer, the Bank acts as an intermediary for the payment. The sender sends the money to his own bank, which then sends the money to the recipient’s bank and finally to the recipient.
In this way the sender pays for the transaction and his Bank sends a message via a secure system to the receiver’s Bank. The message will contain all the necessary information about the transfer, including details of the sender, the receiver and the amount of the transfer.
Since banks act as intermediaries between sender and receiver, the two bank accounts do not have to be linked and the Bank directly verifies that you have the necessary funds for the transfer. The Bank will then use the SWIFT system to send information about the money transfer to the recipient’s Bank, telling it to credit the money to the recipient’s account.
Wire Transfer and traditional wire transfer: what differentiates them?
A traditional wire transfer is another form of electronic payment for transferring money directly from one bank account to another.
Wire Transfer and traditional credit transfers are similar services but with several differences: here are the main ones.
Speed
When it comes to money transfers, speed is of the essence. Recipients need to know that they will not have to wait days for their money to be credited to their account.
Generally, Wire Transfer offers a faster transfer speed when sending money domestically, generally available the next working day after the transfer or the same day.
Traditional wire transfer takes longer, often up to three days, before the money becomes available. However, in most cases, transfers are completed within 24 hours.
Cost
When it comes to cost, the traditional wire transfer is usually the cheapest option. The sender will have to pay a small fee, which is generally lower than the cost of a Wire Transfer.
Risk
Money transfers via traditional wire transfer are often considered the safest payment option as, if the money is sent by mistake, there are ways to cancel the payment.
Traditional wire transfer also requires a lot of information about the recipient, making errors and fraud less likely.
Wire Transfer is generally considered a less secure system for sending money because it is generally instantaneous and therefore impossible to cancel if money is transferred in error or as a result of fraud.
Money transfers with Western Union
With Western Union you can send money in three ways:
Directly to a bank account by wire transfer
- Directly to a bank account by wire transfer
- Cash withdrawal at a Western Union agency
- Using the Western Union app
You can also choose to pay for the transfer via your bank account, debit or credit card, or cash, whichever you prefer. Our money transfers are encrypted and protected with fraud prevention techniques, so you know your money is safe with Western Union.
