International money transfer is a highly demanded service in the current era. Each person travelling abroad further adds to this as they often require money when they are abroad.
Well, do you know, how this money transfer to abroad countries works?
If no, learn about it now by scrolling down…
Wire transfer is one of the most popular mode of international money transfer. Hence, lets explain the process using it.
What is wire transfer?
A wire transfer is an electric way of sending money abroad. It is also acknowledged as bank transfer. Wire transfers have quite a lot of advantages. This mode of international money transfer is fast and secure.
A wire transfer transpires from one bank to another. This is used to send money overseas. They are also used to send money to India from abroad countries. For example, you stay in the United States and your parents in India. You can wire transfer money to them. Also, the parents can send money using the wire transfer service to you as well.
Thus, the query of “what is a wire transfer?” has been answered. Now, let us look the functioning of the service.
How does a wire transfer work?
The most communal way of wire transfer is thru the SWIFT or Society for Worldwide Inter-bank Financial Telecommunication network. The SWIFT network is a messaging etiquette. It has above 11,000 banks in 200-plus countries in its grid. This system is used to send information from one bank to another. It also includes commands for wire transfer.
- For instance, let’s say a person in the US goes to Bank A. He needs to transfer some money to India.
- The account he wants to transmit money to is with bank B.
- Bank A sends transfer orders to Bank B.
- These instructions would comprise data.
- Firstly, the recipient’s name and bank account number.
- It will also have info regarding the transfer amount.
- Such directions may not be directly sent from one bank to another. They may be sent via an intermediate bank.
- One needs to know that there is no actual transfer of money. The money is taken from the sender’s bank account. It is then added to the receiver’s bank account. That’s how wire transfer or the international money transfer works.
Wire transfers are typically used to send money overseas. Local wire transfers take a day and international money transfers may take up to five days or more.
How to do a wire transfer
If you want to send money through wire transfer, then you need to provide some details to the bank/service provider like,
- Recipient’s name and bank account details.
- The full amount of money you want to send.
In some instances, you may need to fill up a paper form. Most banks and the service providers, though, will let you complete the procedure online.
While you receive the money through telegraphic wire transfer, you need to send your bank account details to the sender.
In short, sending money abroad is a wholesome process. A lot of actions and procedures are taking place along with it to make your international money transfer more quick, convenient, and safe.
