Bank-to-bank payment sent through formal settlement networks, used when speed and finality matter more than low fees.
A wire transfer is an electronic payment sent through banking networks to move funds from one institution to another. It is used for transactions where speed, certainty, and finality matter more than low fees.
The sender instructs a bank or payment provider to send funds to a recipient through a formal settlement network. Domestic wires may move through national systems, while international wires often rely on cross-border messaging and correspondent-bank relationships. Because the payment is pushed directly through the banking system, a completed wire is usually difficult to reverse.
This matters because wire transfers are common for large-value transactions such as real estate closings, business settlements, and urgent international payments. They are faster than many other bank-transfer methods, but they also carry a higher fraud risk if the sender follows bad instructions or sends money to the wrong place.
Wire transfers can be expensive relative to other bank-payment methods. Domestic wires often have a flat sending fee, while international wires may add intermediary-bank and receiving-bank deductions. The total cost can therefore exceed the fee shown by the initiating bank.
That matters because the amount sent is not always the amount received. Businesses, homebuyers, and people sending money across borders should check the full fee chain before relying on a quoted transfer cost.