Wire Transfer
A wire transfer is an electronic payment sent directly between banks via Fedwire (domestic) or SWIFT (international), settling irrevocably the same day.
A wire transfer is a bank-to-bank electronic payment that moves funds directly between accounts — bypassing the batch-processing queues of ACH. In the US, domestic wires use the Fedwire Funds Service operated by the Federal Reserve; international wires use the SWIFT network. Wire transfers are irrevocable — once sent, they cannot be recalled without the recipient's cooperation.
Domestic wire transfers via Fedwire settle in minutes during Federal Reserve operating hours (9 AM–6 PM ET, Monday–Friday). Sending fees range from $20–$35 at most US banks; some banks charge receiving fees of $10–$15. International wires via SWIFT take 1–5 business days and involve correspondent bank fees of $10–$30 per hop, plus FX spreads. A SWIFT wire to a remote bank could cost $50–$100+ in total fees.
Wire transfers remain the standard for high-value, time-sensitive, irrevocable payments — real estate closings, securities settlements, and large vendor invoices. For recurring contractor payroll, however, the cost and operational overhead of wires makes stablecoin rails or local payment systems (SEPA, PIX, SPEI) far more efficient. Bitwage routes contractor payments through the lowest-cost rail that meets the recipient's settlement time requirements.
Wire Transfer FAQ
Common questions about wire transfer in the context of international payments.
For an international wire via SWIFT, you need: recipient full name and address, bank name and address, SWIFT/BIC code, account number or IBAN, and the payment currency and amount. For European contractors, sepa transfer only requires an IBAN — no SWIFT code needed.
Domestic Fedwire transfers can be reversed if requested quickly and the receiving bank agrees. SWIFT international wires are much harder to reverse — you must contact your bank, who contacts the correspondent bank, who contacts the receiving bank. Recovery is not guaranteed. This is why verifying recipient details before sending is critical — see our dual approval workflow for payment controls.
Sending fees: $25–$50 at the originating US bank. Correspondent bank deductions: $10–$30 per intermediary. FX spread: 1–3% if converting currencies. Total cost per wire: $50–$150 for remote destinations. reduce wire transfer fees shows how businesses save 60–80% by switching to stablecoin or local rail alternatives.
More Payment Rails & Methods Terms
Expand your knowledge of international payment terminology.
ACH Transfer
ACH (Automated Clearing House) is the US electronic bank transfer network used for direct deposits, bill payments, and payroll — settling in 1–3 business days or same-day.
BACS
BACS (Bankers' Automated Clearing Services) is the UK's batch payment system used for regular payroll, direct debits, and bulk supplier payments, with 2–3 business day settlement.
BECS (Australia)
BECS (Bulk Electronic Clearing System) is Australia's batch payment system for direct credits and debits, similar to ACH in the United States.
CHAPS
CHAPS (Clearing House Automated Payment System) is the UK's same-day high-value sterling payment system, typically used for property transactions and large business payments.
CVU (Argentina)
CVU (Clave Virtual Uniforme) is Argentina's virtual uniform key system for instant ARS transfers between bank accounts and digital wallets.
Cross-Border Payment
A cross-border payment is any financial transaction where the payer and payee are in different countries, involving currency conversion, international routing, and regulatory compliance across multiple jurisdictions.
Direct Debit
A direct debit is an authorized recurring pull payment where a company automatically debits a customer's bank account on a set schedule.
Faster Payments
Faster Payments is the UK's real-time domestic payment scheme enabling instant bank transfers up to £1 million, operating 24/7/365.
FedNow
FedNow is the Federal Reserve's instant payment service launched in 2023, enabling 24/7 real-time USD bank transfers for US financial institutions.
IBAN (International Bank Account Number)
An IBAN is a standardized international account number used to identify a specific bank account across borders, required for SEPA transfers and many other international payment rails.
IMPS (India)
IMPS (Immediate Payment Service) is India's instant interbank transfer system, enabling 24/7 real-time INR payments up to ₹5 lakh.
InstaPay (Philippines)
InstaPay is the Philippines' instant retail payment system for transfers up to ₱50,000, settling in real time 24/7.
Instant Payment
An instant payment is a bank transfer that settles in seconds, 24/7/365, with immediate availability of funds to the recipient.
Interac e-Transfer
Interac e-Transfer is Canada's real-time payment network for personal and business transfers, using email or mobile number to route payments between Canadian bank accounts.
International Wire Transfer
An international wire transfer is a bank-to-bank electronic funds transfer that crosses national borders, typically routed through the SWIFT network.
NEFT — National Electronic Funds Transfer
NEFT is India's nationwide electronic fund transfer system operated by the Reserve Bank of India, processing payments on a half-hourly batch cycle.
NPP Osko (Australia)
NPP Osko is Australia's instant payment system, enabling real-time bank transfers 24/7/365 with funds available in seconds.
PESONet (Philippines)
PESONet is the Philippines' batch electronic fund transfer system for higher-value payments, with same-day settlement during banking hours.
PIX Payment
PIX is Brazil's instant payment system operated by the Banco Central do Brasil, enabling 24/7 real-time transfers in under 10 seconds.
PayNow (Singapore)
PayNow is Singapore's instant payment system enabling real-time SGD transfers using mobile numbers, NRIC/FIN, or UEN (business registration).
Payment Processing
Payment processing is the end-to-end handling of a financial transaction — from initiation through routing, conversion, settlement, and reconciliation.
Payment Rail
A payment rail is the underlying infrastructure or network that moves money from one account to another — such as ACH, SWIFT, SEPA, PIX, or blockchain networks.
PromptPay (Thailand)
PromptPay is Thailand's national instant payment system, enabling real-time THB transfers 24/7 using a phone number or national ID as the payment identifier.
PromptPay (Thailand)
PromptPay is Thailand's national instant payment system, enabling real-time THB transfers using a phone number, national ID, or e-wallet.
Pull Payment
A pull payment is initiated by the recipient (payee), who "pulls" funds from the payer's account — common in direct debits and subscription billing.
Push Payment
A push payment is initiated by the sender (payer), who "pushes" funds to the recipient — as opposed to a pull payment where the recipient initiates the debit.
RTGS (Real-Time Gross Settlement)
RTGS is a payment system where large-value transactions are settled individually and immediately in real time, without netting or batching.
RTP (Real-Time Payments)
RTP is The Clearing House's real-time payment network, enabling instant 24/7 USD bank transfers in the US for participating financial institutions.
Real-Time Payments (RTP)
Real-time payments are bank transfers that settle within seconds, 24/7/365 — including FedNow (US), Faster Payments (UK), PIX (Brazil), and SEPA Instant (EU).
Remittance
A remittance is a cross-border money transfer sent by an individual (typically an immigrant worker) to family or individuals in their home country, representing one of the largest financial flows to developing economies.
SEPA Instant
SEPA Instant Credit Transfer (SCT Inst) is the EU's 24/7 real-time payment scheme settling euro transfers in under 10 seconds across 36 European countries.
SEPA Transfer
SEPA (Single Euro Payments Area) is the EU-wide bank transfer network enabling instant or next-day euro payments across 36 European countries.
SPEI Payment
SPEI is Mexico's interbank electronic payment system operated by Banco de México, enabling real-time fund transfers 24/7 via CLABE account numbers.
SWIFT Payment
SWIFT is the global interbank messaging network used to execute international wire transfers between financial institutions.
SWIFT gpi
SWIFT gpi (global payments innovation) is an enhanced SWIFT service that provides same-day settlement, end-to-end payment tracking, and fee transparency for international wire transfers.
SWIFT/BIC Code
A SWIFT code (also called a BIC — Bank Identifier Code) is a unique 8 or 11-character identifier for a financial institution in the SWIFT network, required for international wire transfers.
Same-Day Settlement
Same-day settlement means the recipient receives funds on the same day the payment is initiated — compared to 1-5 business days for traditional SWIFT wires.
Settlement
Settlement is the final, irrevocable transfer of funds from payer to payee that discharges a payment obligation — the moment when money actually moves and the transaction is complete.
Standing Order
A standing order is a recurring push payment instruction set up by the payer to automatically send a fixed amount to a recipient on a regular schedule.
TED (Brazil)
TED (Transferência Eletrônica Disponível) is Brazil's same-day interbank transfer system for higher-value BRL payments.
UPI (Unified Payments Interface)
UPI is India's real-time mobile payment system operated by NPCI, enabling instant bank-to-bank transfers 24/7 using a Virtual Payment Address (VPA).
UPI — Unified Payments Interface
UPI is India's real-time mobile payment system operated by NPCI, enabling instant 24/7 bank transfers via mobile number, UPI ID, or QR code.
Virtual IBAN
A virtual IBAN is a unique bank account identifier assigned to a business for receiving payments, which routes funds to a pooled or master account — simplifying multi-currency collections without opening separate bank accounts.
Wire Transfer Alternatives
Alternatives to traditional SWIFT wire transfers include local real-time rails, stablecoin payments, and fintech platforms that offer faster and cheaper cross-border transfers.
Zengin System (Japan)
Zengin is Japan's domestic interbank funds transfer system, operated by the Japanese Bankers Association, processing all domestic bank-to-bank transfers in Japan.
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