14 Jan 2025
Wire transfers through banks are a popular way to send money. They are quick, safe, and efficient. They let people and companies make a money transfer and make faster payments worldwide. However, one of the most frequently asked questions about wire transfers is: What is the duration for a customer to wire money? The answer depends on various factors.
This article will cover the types of wire transfers and what affects wire transfer times. This will help us understand how long it takes to transfer money between accounts.
A wire transfer is an electronic means of sending money between individuals or between a person and a financial institution. It is performed through an electronic system of banking or other financial institutions to authenticate the transfer instructions. It is important to note that wire transfers can be made for local money transfers and cross-border monetary transfers as well.
The two most common types of wire transfers are:
Transfers moving within a country are usually through a local or national network, including the Federal Reserve Wire Network (Fedwire) and the Clearing House Interbank Payments System (CHIPS) in the United States.
Money wire transfers involve two parties in countries that are unlike each other. They do this through the Society for Worldwide Interbank Financial Telecommunication (SWIFT network) or other cross-border networks.
Wire transfers are generally prompt; however, the recipients' use period depends on several factors. Considering these factors, let’s explain the typical time to complete domestic and international wire transfers.
To wire money to another person in a bank-to-bank transfer, a few mandatory requirements include your account number, the receiver’s name, account number, and the bank’s routing number. You will also require details on the recipient, such as the name and address of the bank from which the money will be received. If you want to send money to any other country, you may need to obtain the SWIFT code from the recipient. If you require support, the transaction and the recipient could have to contact the bank employees.
There are various methods to send money, including online money transfer, via phone, or physically. It is advisable to be ready to give detailed instructions to your bank, including the amount you wish the recipient to receive. If this is the case, you or the bank teller will generally have to fill out a form; therefore, the information must be accurate. Sometimes, you want to confirm that your money has been delivered to the appropriate person.
If you use a nonbanking money transfer company, you must know how it is wired. Sometimes, the sender does not even have to have a bank account to impact the transfer. In most cases, accessing such services requires cash, perhaps self-broadcasting. After the transaction, the recipient most often retains the money that he or she has received.
Following are some of the factors that impact the speed of wire transfer:
Every bank also has a specific cutoff time, after which the wire transfer request cannot be processed on the same business day. If your transfer does not meet this cutoff time, it will generally occur the next business day. Again, bank cutoff times might differ, but they are usually between 2 PM and 4 PM local time. If you want the wire transfer to be completed as soon as possible, it is wise to contact the bank and find out its cutoff time.
Furthermore, a wire transfer sent on the weekend or any public holiday will also determine the duration of the transfer. All wired transfers are not processed on the weekends or holidays, and they usually arrive one business day before the date of transfer.
The bank works on the transaction when a transfer request has been made. International transfers for a domestic bank take a shorter time because all the banks must authenticate the transfer instructions and route the funds through a domestic transfer system. However, international wire transfers take more time to process because they use the SWIFT system, and usually, there are many stages in converting the currency.
Moreover, banks might retain the money for security considerations or to confirm the transaction. Sometimes, the transfer will take a long time, especially if the money is considerable or the transaction looks suspicious.
In the case where the transfer involves a conversion of the currency, this can take time on top of that. Currency exchange is always characterized by the act of purchasing and selling foreign currency, which may at times be very time-consuming depending on whether the market is stable or not or depending on the conversion between some less popular currencies. In any case, when the wire involves the exchange of currencies, it may take an additional 1-2 business days as the banks take time to complete an exchange and other related charges.
Intermediary banks may be involved in international transfers. These institutions act as a link, assisting in the transfer if the two institutions have no direct dealings. Every next intermediary bank increases the number of actions needed and potential time periods. If the wire transfer incorporates intermediary banks, effecting the transfer takes a shorter time.
Banks are bound to adhere to strict laws on controlling fraud, money laundering, and terrorist financing activities. In case of a large or suspicious wire transfer, these regulations require more time to complete the transfer, or otherwise, if the transaction originates from or goes to any country mentioned as high risk. This means the wire transfer may take one or more days to complete.
The time it will take to complete the wire transfer also depends on the time difference between the sending and receiving countries. For instance, an extra day may be obtained when the transfer is being made between the accounts of different banks in different time zones or operating on other continents. Also, if the recipient bank’s country observes holidays different from the sender country, this will cause some delay.
Some of the timelines are as below
Following are some types of domestic wire transfers:
Checks cleared in systems like Fedwire or CHIPS can be completed within the same working day if the domestic wire transfer is made before the working cut-off time or before the time set for results. Moves to and from any significant banking institution can generally be done in a few hours.
The types of international transfers include:
Using SWIFT to process international transfers may take 12 hours and 5 business days. The latter can take one to five or even more working days depending on the countries involved, the nominated banks, currency, and the banks’ operations’ velocity.
The SEPA wire transfers include:
SEPA wire transfers between the European Union and a few other countries are usually completed within 1 to 2 business days.
Wire transfers, as a rule, are irrevocable. Nothing else exists once the payee’s bank clears the transfer and claims the money. At that point, you may have to start realizing that you can’t get your money back anymore. There are, nevertheless, relatively few of them.
The wire transfer may be reversed if the bank that sent it made an error. For instance, if the recipient was supposed to receive some money but actually received more, that issue might be addressed.
However, if you have initiated a wire transfer process and then decided not to send the particular amount to a person anymore, you can try to cancel it. You’ll need to be fast on your toes to have them work for you. A recently enacted regulation under the Dodd-Frank Wall Street Reform and Consumer Protection Act is that consumers who make payments internationally have the right to cancel general wire transfers for free within 30 minutes.
You can also cancel a wire transaction if the cash is delayed or transferred to the wrong recipient’s account. Regarding international wire transfers, you should know that you will also lose money if the currency exchange is lower on the reversal date. Regardless of the case, contact your bank for any other charges or conditions that apply before sending money.
Below are some ways to speed up the transfer:
Refrain from using intermediary banks. Cross-border transfers would normally be faster if both the sending and receiving banks used the same direct network or link.
Be certain to begin the transfer considerably before the bank's cutoff time to maximize its possibility of same-day processing.
Some banks provide express or on the same-day wire transfer at an extra charge. You should check with your bank if they’ll give this service.
As much as possible, do not perform fluctuations in currency since the process will be slower.
Mistakes like providing wrong details or lack of information will require the bank to take time to review or correct them.
Bank wires are one of the most secure and fast money transfer methods. However, the transfer time may differ depending on its essential characteristics: domestic/international, banks participating in the transaction, and the used technological platform. Although a domestic online money transfer can occur within the same day, international money transfers may take 1 to 5 working days because of currency conversion, intermediaries, and other banking rules. With some information regarding when and why these wires may be slow, you can likely work on ensuring your funds are transferred as quickly as possible.
Converting an exchange for use in a foreign nation will take more time. Potential users should also be aware that some banks offer faster payment services for a fee. These services can help significantly minimize transfer time.
Generally, IBAN transfers accrued within working days, which range from 1-3 days. However, several factors can influence this timeframe:
Transfers to or from countries that are members of the SEPA (Single Euro Payments Area) usually are affected more quickly than transfers to or from another country.
The bank's ability to process card payments can also affect the time it takes to process them.
Yes, most banks are always open for business online, and you can track your wire transfer by logging into the bank’s website or speaking with a bank representative.
Yes, banks tend to impose fees on wire transfers, especially cross-border ones. These fees may also differ from one bank to the other depending on the particular transaction made.
The wire transfer methods are slightly faster than other dated methods like check.
They are generally believed to be a safe way of transferring money.
On the other hand, the money can be transferred internationally through wire transfers.
