Difference between Wire Transfer & Electronic Transfer


There are countless way used by banks and other financial institutions to transfer funds. Wire transfer and electronic transfer are commonly used by banks and financial institutions to transfer funds. Wire transfer and electronic transfer are different in a number of ways and this is what we will discuss in this article. We will discuss both the ways of transferring funds and it will make things a lot easier.
 

Wire Transfer


Let’s start with wire transfer. If you want your bank to transfer money from your account to another account abroad, you will have to provide your bank with the SWIFT code. Your bank informs the bank you want to send money to through digital instruction. Time required for this transaction to complete may be between few hours to one week. The person who wants to send you money will need his identifying information and yours. Basically the banks need this information. The bank will need your account number, name and address. The sender might need your bank’s SWIFT code. The person who is sending the money will also give a reason for transferring the money. The bank will simply notify the receiving bank about the transfer. And then the money will be transferred to the receiving bank electronically.
 

Electronic Funds Transfer


Funds can be transferred to one or more account using electronic transfer. This is different from the wire transfers discussed above. If you need to send money, you will initiate an electronic payment through an automated clearinghouse. And the person you are sending money to is required to register his bank account information with the ACH. The funds you transfer are credited to the receiver’s account by ACH. 
 

In a wire transfer the bank employee will ask you to bring money with you. But electronic transfer on the other hand involves ACH. The inclusion of ACH does not make the process complex but just adds some time to the process. Funds transferred electronically reach the destination within 1 to 3 working days.
 

Price Comparison


Electronic transfer involves one additional step but still it is easy to use and most of the banks prefer electronic transfers over wire transfers. The cost of electronic transfer is nominal (almost free) and this is why some banks don’t even charge you anything for sending the money electronically. Wire transfer on the other hand is expensive and may cost you $25 or even more per transaction.





Articles



How to Track Wire Transfers

How to Track Wire Transfers

You will use wire transfer if you need to move funds from your bank account to another bank account. Generally such transactions complete successfully but sometimes people make mistakes forcing you to track a wire transfer.

Read more

How to Find My IBAN Number

How to Find My IBAN Number

How to Find My IBAN Number. There is a little difference between IBAN and SWIFT. IBAN is simply an extension to your current account number for use when you need to make payments in another country. SWIFT on the other hand stands for Society for Worldwide Society for Worldwide Interbank

Read more

Banks That Can Receive an Overseas Wire Transfer

Banks That Can Receive an Overseas Wire Transfer

Things have changed a lot now there are people who wish to receive payments in foreign currency. You can also benefit from this trend if you have an account with U.S. bank. The method used by banks to send money between each other is known as International wire transfers.

Read more