Only a decade or two ago, the go-to method for sending money over a long distance was to send a check. This way of doing things was often slow and unpredictable, such that debtors who had run out of excuses would simply quip ‘the check is in the mail’ to ease off the pressure from their creditors.
Today, there are numerous money transfer services — each with its own unique selling point. For all their shortcomings, wire transfers have come a long way and are still one of the most reliable ways to send large sums of money, both locally and across borders. Americans, however, don’t only need to send and receive money safely and reliably, but they also want to have the transfer go through as quickly as possible.
This begs the question, “Are wire transfers instant?”. The short answer is no, they are not. While they are relatively fast, domestic wire transfers are typically completed within three business days, at most. Transfers between accounts at the same bank or financial institution typically take less than 24 hours to complete. And if you’re looking to wire money internationally, then you may have to wait as many as five days until the recipient gets the cash.
So how come the same payment method has wildly varying transaction processing times, and are there ways you can speed up the process?
How wire transfers work
When wire transfers were introduced, transfer instructions were sent via telegraph wires, which is how the process got its name. Today, this type of transfer involves the electronic transmission of money from one financial institution to another. No actual cash has to move. Once the institution receives electronic information with the recipient’s banking details and how much money they should receive, it can then verify and process the transaction.
Wire transfers, however, aren’t strictly a formal bank-to-bank process. The phrase can also refer to the wiring of money through online money transfer services or remittance service providers. Locally, U.S residents can wire money via the Clearing House Interbank Payments System (CHIPS), or the Federal Reserve Wire Network (Fedwire). Although you can use the CHIPS to send money internationally, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) is more commonly used.
How to send money by wire transfer
To send money via wire transfer, you’ll need the recipient’s personal or business name, bank account number, and routing number. You may also need the recipient’s address and bank name. For international wire transfers, you’ll need to ask for the receiving bank’s SWIFT code. And of course, you also need to enter the amount of money you want to send.
The slightest of mistakes in any one of these details can result in lengthy delays to the entire process. That’s why it’s advisable for both you and the recipient to copy and paste the banking details rather than enter them manually.
Traditionally, you had to visit your local bank to send a wire transfer. With the advent of online banking, however, you can complete the process online or by using a mobile app. Online money transfer services typically have quicker, simpler transfer processes. In some cases, you only need to enter the recipient’s name, address, phone number, and email address to complete a transfer. With Cashero, you simply need to search for the contact in the Payments tabs, verify their number is correct, and transfer them the money. Once you complete the process, the recipient will get a notification that the transfer has taken place, and the money has been deposited into their account.
If you’re the recipient, you simply need to reverse the process and provide the sender with an accurate bank account, routing number and other banking details. When it comes to receiving money through Cashero, the only thing you’ll need to do is find the contact you wish to receive money from and make a request. Your fellow Cashero user will get a notification and easily be able to send you the amount you’ve requested.
Can you speed up wire transfers?
It’s understandable that most people want to have the best of both worlds — secure transfers that are processed instantly. You may be counting the hours or days since you sent a wire transfer, but your recipient hasn’t yet acknowledged receipt of the payment.
But is there anything you can do to speed up a wire transfer? The answer is yes, but you can only do so by making sure everything goes well from when you first process the transfer.
First, find out from your financial institution how long it’ll take for your wire transfer to go through. The employees there will know all the variables that could delay your payment and can offer useful advice. If you’re in a rush, you can then weigh your options and work with a service that’s best for your immediate requirements.
Most times, wire transfer delays are brought by avoidable mistakes or oversights. For example, sending a wire transfer only a few minutes after your bank’s cut-off time can delay the transaction by an entire day. While it may be business as usual in the US, it’s vital to first check if there are any pending public holidays in your recipient’s country. By using online transfer service providers, you can make sure your transfers go through, even when traditional banks are closed.
Another factor to consider are the countries involved in the transfer. Certain countries are considered slow-to-pay. Due to slow or incompatible banking infrastructures, wire transfers to these countries may take more than a week to process. In addition, wire transfers from the US to some economically-sanctioned nations may be subject to extra delays, scrutiny, or even outright rejection. Conducting such due diligence and choosing the best financial institution may therefore save you from avoidable delays.
Conclusion
Wire transfers are the go-to way to send and receive large sums of money safely and reliably. One of the downsides, however, is that the transfer process is rarely even close to instant. That said, working with online service providers, such as Cashero, instead of traditional banks may work in your favor. So check us out next time you need to make a transfer, and see how easy it can be when you work with Cashero.
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