How to Wire Money Online Safely and Easily

I love that transferring money today is easier than ever. We no longer have to rely on cash or a mailed paper check. Remember how long it would take to wait for a check in the mail? Today, you can transfer money electronically, whether you’re paying a bill or sending money to family or friends.

A common way to transfer money is to order a wire transfer. You can do this from your computer or phone from anywhere you have a secure internet connection. A traditional wire transfer immediately takes money from your bank account and transfers it to the recipient’s account. However, many banks charge for this type of transfer, so I like to consider my other options to transfer money electronically, too.

The key is knowing how to transfer money online and its costs to help you make the most of your finances.

How wire transfers work

Before we discuss how to wire money online, it’s important to understand how they work. A wire is technically any method of sending money online, but a true wire transfer is a direct transfer of funds from one bank to another.

Most major banks allow you to complete a wire transfer online simply by signing into your account and specifying that you need to send one and entering the recipient’s information and dollar amount. You usually also have the option to send a domestic or international wire transfer.

Some banks even offer free domestic incoming wire transfers, such as Ally, Capital One 360, and Discover. However, each of these banks charge a fee for outgoing wire or international transfers.

Types of wire transfers

The term wire transfer is often used interchangeably with ACH transfers and other services, like Zelle, but a true wire transfer involves sending money either domestically or internationally from one bank to another.

Domestic transfers

Domestic transfers refer to money transferred between two banks in the same country. For example, if I wired money from my Bank of America account to my parents’ Chase account, both in the United States, it would count as a domestic transfer.

International transfers

International transfers refer to money transferred between two banks in different countries. They often require the assistance of an intermediary bank to handle the transaction since their banking systems and currencies are different.

ACH transfers

ACH transfers refer to electronic transfers between banks using a third-party service. Common examples are Zelle, Cash App, Venmo, and PayPal. Zelle works through your bank’s mobile app and Venmo, Cash App, and PayPal are separate services. Each may charge fees for certain transactions, so read the fine print to understand the cost and timing of the transfer.

How to wire money online: 3 options

As you consider how to transfer money from your bank, here are the steps you must take.

Online bank wires

1. Log into your online banking platform
2. Select Wire transfer (may also say ACH/wire)
3. Accept the terms and conditions
4. Add the recipient’s information
5. Follow the instructions to confirm the recipient’s information
6. Choose the account you’re transferring funds from
7. Enter the amount you want to transfer
8. Confirm all information
9. The transfer will be sent

The money you send comes directly from your savings or checking account and usually delivers the same business day or the following one, depending on your bank and the time of day you make the transfer.

Information needed for a wire transfer

When you send money via online bank wire, you must provide some basic information including:

• The full name and address of the person you're sending money to
• The name of the receiving bank
• A secure I.D. or U.S. mobile device with a telephone number
• An ABA routing number for transfers within the United States or a SWIFT code or BIC for an international transfer. This enables your bank to correctly identify the bank or credit union that will receive the incoming wire transfer.
• An account number for domestic transfers or an International Bank Account Number (IBAN) if you're transferring money out of the country. This ensures the money moves into the correct account.

International wires may require additional information.

Wire transfer companies

If your bank doesn’t offer wires, or you missed the typical bank hours, you may consider nonbank wire transfer services such as Western Union and MoneyGram.

When you use wire transfer services you can visit them in-person, paying cash to transfer to family or friends, or you can download their mobile apps and do it online, just like a bank account wire.

The difference is that you must provide your bank account information along with the recipient’s information to conduct the transfer. Western Union has 42,000 locations around the country and MoneyGram has 430,000 locations.

As with an online wire transfer, the money is transmitted quickly, and you can't recover the funds once the money has been sent. You can, however, track the movement of your funds so you'll be able to see exactly when the money has been transferred.

Fees for these wire transfer services can vary, but they sometimes cost less than bank wire transfer fees. You're also limited in the amount you can send for security. For example, Western Union’s limits to send money to Mexico is $7,499 if received in cash and $2,750 if received in a bank account.

To transfer funds via Western Union, you'll need to provide:

• Your contact information, including your name and address
• Your chosen payment method, including debit card, bank account, credit card, or cash
• Your recipient's information, including their name as seen on their government ID (they will not be able to pick up the funds if you don't provide their name exactly as it appears on their identification).

When you sign up for a Western Union account, the website posts a message warning against fraud as scammers often ask people to send money via wire transfer. The company advises you not to send money if you've been asked to do so for specific reasons such as an unconfirmed emergency, a deposit on a rental property, an employment opportunity, taxes, or lottery winnings.

There's also a fraud hotline at 800-448-1492 that you can call for help if you feel you may have been defrauded. However, Western Union warns it cannot refund the money in most circumstances once it's been sent.

Online and mobile payment services

Personally, I prefer to use online and mobile payment services to transfer money. It’s often just as quick and some transfers, such as Zelle and Venmo, are usually free.

Typically, you can send money from your bank account, or use a credit or debit card for an additional fee. You can also send money foreign currencies with some services, though others such as Zelle require both the sender and recipient to have a U.S. bank account.

The exact process by which these services work can vary in important ways. For example, Zelle transfers are instant with the recipient receiving the money directly in their bank account within minutes. Other services, like PayPal and Venmo, though, deliver the funds to your PayPal or Venmo account and then you must withdraw them to your bank account.

The downside is that both parties usually need the app to transfer money using these services. For example, both parties must have Venmo for you to transfer money to a friend or family member using Venmo.

The good news is that transfer is often free as long as you're sending money directly from a bank account — unlike with other options. However, there may be lower daily limits on the amount you can send compared with a bank wire transfer.

In order to send money via an online or mobile payment service, you'll typically need:

• An account with the service: This requires you to provide an email address and personal information
• The recipient’s account information: The recipient generally must also be a member of the same service
• Your payment details: This includes your bank account or credit card information

Once you've set up your account, it's easy to send money to other members. It could be as quick as inputting their email address or phone number, which makes these services especially convenient.

How much does it cost to wire money?

The cost to wire money varies depending on what service you use. In some cases, it's free to transfer funds — especially if you use Zelle, Paypal, or Venmo and have the money withdrawn directly from your bank account.

However, money transfer services and bank wire transfers both typically come at a cost. A bank may charge as much as $45 for a wire transfer, whereas services such as Western Union charge varying fees depending on your payment method and whether you're sending money domestically or internationally.

FAQs

Bottom line

You have several options to transfer money via a wire. Sometimes a bank wire is your only choice, especially in high-stakes transactions, such as buying a house. But when you’re just sending money to family or friends, online mobile payment websites such as Cash App and Paypal may be both faster and cheaper. Consider all the different methods for digitally transferring funds when trying to figure out how to wire money online so you can make the choice that's right for you.