What is a wire transfer: A thorough overview
A wire transfer is an electronic method of sending money directly from one bank account to another, domestically or internationally. Read on to find out how wire transfers work, what they cost, and what you can use instead to send money faster and more conveniently.
What's the difference between a bank transfer and a wire transfer?
How does a wire transfer work?
How much does a wire transfer really cost?
Can you cancel a wire transfer?
When does a wire transfer make sense?
Wire transfer vs modern alternatives: Which is right for you?
FAQ: What is a wire transfer?
What's the difference between a bank transfer and a wire transfer?
A bank transfer usually moves money through domestic or regional payment systems such as ACH or SEPA, while a wire transfer is typically processed through bank-to-bank wire networks and is more often used for large, urgent, or international payments. Both bank transfers and wire transfers move money electronically between accounts. The main difference is how they are processed.
The cost can differ significantly as well. A regular EUR bank transfer may be free or cost only a few euros, while international wire fees can reach 15–50 EUR or more. For example, NerdWallet research showed that sending an international wire from the USA cost around 45 USD on average in 2026.
Bank transfer vs wire transfer
| Feature | Bank transfer (ACH/SEPA) | Wire transfer |
|---|---|---|
| Speed | Seconds to 1–3 business days, depending on the system | Same day to several business days |
| Cost | Often 0–3 EUR | Around 10–50+ EUR |
| Reversibility | Cancellation or recall may sometimes be possible | Usually difficult or impossible to reverse once settled |
| Geography | Domestic or regional; SEPA also supports cross-border EUR payments | Domestic and international |
| Best for | Bills, salaries, everyday payments, smaller transfers | Large, urgent, or formal bank-to-bank payments |
| Available 24/7 | Yes for some instant payment systems | Depends on the bank and payment system |
In Europe, instant euro transfers can reach the recipient within seconds, 24/7, including weekends and public holidays. EU rules also require eligible providers not to charge more for an instant EUR transfer than for an equivalent standard transfer.
How does a wire transfer work?
You can usually send a wire transfer online, through your banking app, or at a branch. In all cases, you will need the recipient's bank details and enough money in your account to cover both the transfer and any applicable fees.
- Visit your bank branch or open the wire transfer section in your banking app.
- Enter the recipient's details, including their name and bank account information.
- Add the bank routing, IBAN, or SWIFT/BIC details required for the destination.
- Specify the amount and currency.
- Review the transfer amount, exchange rate, and fees.
- Confirm the transfer and keep the transaction reference.
For a domestic wire, the payment may be settled directly through a national payment system. International transfers may involve one or more banks. The sending bank sends payment instructions, potentially through SWIFT, and the funds travel through correspondent banking relationships until they reach the recipient's bank.
This doesn’t necessarily mean the money spends several days moving between banks. More than 90% of cross-border payments sent through SWIFT now reach the beneficiary bank within one hour. Delays can still happen before the recipient gets access to the money.
What information is needed for a wire transfer?
| Information | Domestic transfer | International transfer |
|---|---|---|
| Recipient full name | Required | Required |
| Recipient address | Sometimes | Often required |
| Recipient bank account number or IBAN | Required | Required, depending on country |
| Recipient bank name and address | Usually required | Usually required |
| Bank routing number (ABA/RTN) | Required for some US transfers | Usually not needed outside the US |
| SWIFT/BIC code | Usually not needed | Often required |
| Currency and amount | Required | Required |
| Sender full name | Required | Required |
| Sender address | Sometimes | Often required |
| Purpose of transfer | Sometimes | May be required |
Requirements vary by bank, payment system, and destination country. Your bank will tell you exactly what information is needed.
International transfers may require additional information due to anti-money laundering checks.
How much does a wire transfer really cost?
The fee shown by your bank may not be the only cost of an international wire.
Depending on the route, you may pay:
- Sending bank fee. Your bank may charge a fixed amount for initiating the wire.
- Intermediary bank fees. If the payment passes through a correspondent bank, it may charge a processing fee.
- Recipient bank fee. The receiving bank may charge the recipient for accepting an incoming international payment.
- Currency conversion costs. If currencies need to be exchanged, the bank's exchange rate can make the transfer more expensive.
This means that sending 1,000 EUR doesn’t always guarantee that the recipient will receive the exact converted equivalent of 1,000 EUR.
For some international transfers, you may also see fee options such as OUR, SHA, or BEN. With OUR, the sender agrees to cover the applicable transfer charges. SHA means fees are shared between sender and recipient, while BEN means the relevant charges are taken from the amount sent to the beneficiary.
Always check both the transfer fee and the final amount expected to reach the recipient before confirming the payment.
Can you cancel a wire transfer?
Sometimes, but you need to act quickly. If the bank hasn’t yet processed or settled the transfer, it may still be possible to cancel it. Once a wire has been settled, reversing it becomes much more difficult. For an international wire, your bank may be able to send a recall request, but that doesn’t guarantee the money will be returned. The recipient bank or recipient may need to cooperate.
If you sent money to the wrong account or suspect fraud, contact your bank immediately.
When does a wire transfer make sense?
Despite the cost, wire transfers still have their place if you need to send a large amount of money or:
- A business or institution specifically requests a bank wire
- You are paying for property, tuition, investments, or another large purchase
- You need a formal bank-to-bank payment record
- Your destination, currency, or transfer amount is not supported by a specialised money transfer service
For regular transfers to family and friends, however, a wire may be too expensive or complicated.
Wire transfer vs modern alternatives: Which is right for you?
Wire transfers remain widely used, but in 2026 there are other options depending on what matters most to you.
Wire transfers
✓ Widely accepted by banks globally
✓ Suitable for large payments
✓ Useful when formal bank-to-bank documentation is required
✗ International wires can be expensive
✗ Additional intermediary and receiving-bank fees may apply
✗ Difficult to reverse once settled
✗ Recipient amount may be affected by fees and currency conversion
Online money transfer services (Profee)
✓ Competitive exchange rates locked in before sending
✓ Fees shown before you confirm
✓ 95% of transfers arrive within minutes
✓ Recipient can receive money directly to a card, bank account, or supported mobile wallet
✗ Availability, limits, and payout methods vary by destination
Stablecoins & blockchain
✓ Transfers can settle quickly
✓ Network fees may be low
✓ Can be sent across borders without traditional correspondent banking
✗ Regulatory environment varies by country
✗ Exchange and withdrawal costs may apply
✗ More technical knowledge is required
✗ Crypto mistakes can be difficult or impossible to reverse
Explore: Blockchain and cryptocurrency: Are they really cheaper for sending money?
For expats who regularly send money home, Profee can be a more convenient alternative to a traditional international wire. You see the exchange rate, transfer fee, and amount your recipient will get before confirming the transfer.
You may find Profee useful if you want:
- Fast transfers. 95% of Profee transfers arrive within minutes.
- Transparent pricing. The exchange rate, fee, and recipient amount are shown before confirmation.
- Multiple ways to receive money. Depending on the destination, money can be sent to bank accounts, cards, or mobile wallets.
- Security. Profee is regulated in the EU and uses security and anti-fraud controls to protect transfers.
- Wide coverage. Transfers are available to more than 90 destinations.
Getting started: Create a Profee account, enter your transfer amount, and check exactly how much your recipient will get before you send.
FAQ: What is a wire transfer?
What are the risks of wire transfers?
One of the biggest risks is sending money to the wrong recipient. Once a wire has been settled, getting the money back can be difficult or impossible.
Wire transfers are also commonly targeted by scammers because victims may not be able to reverse the payment after sending it. Always verify payment instructions carefully, especially if someone unexpectedly asks you to send money to a new bank account.
Check our tips on avoiding transfer scams.
How long does a wire transfer take?
It depends on the payment route and banks involved. Domestic wires can arrive on the same business day, while international transfers may take anywhere from hours to several business days.
More than 90% of cross-border payments sent over SWIFT reach the beneficiary bank within an hour, but the recipient bank may take additional time to credit the money to the customer's account.
How does a wire transfer work?
Your bank sends payment instructions to another bank and transfers the funds through the relevant banking and settlement systems. For international wires, banks often exchange payment instructions through SWIFT.
What happens if I enter the wrong wire transfer details?
Contact your bank as soon as you notice the mistake. If the payment has not yet been processed, the bank may be able to stop it. If it has already been credited, the bank can try to recover the funds, but successful recovery is not guaranteed.
Is PayPal a wire transfer?
No. PayPal is a digital payment platform rather than a traditional wire transfer service. Payments between PayPal users are processed through PayPal's own system, although PayPal may use banking networks when money is added to or withdrawn from an account.
