Whether you are an entrepreneur, self-employed, or employee, you are always in contact with Money. As a result, there are times when you need to send money quickly, and that is where a wire transfer becomes relevant. This blog post will enlighten you about all you need to know concerning how to wire Money securely. Therefore, keep reading to find out how to secure your next wire transfer.
What does it mean to wire Money?
When you wire money, it means you are initiating an electronic transfer of funds from one bank to the other (recipient). Essentially, this money system from one bank to the other is also known as a wire transfer. You can send funds through this method both locally and internationally, which leads us to discuss the types of wire transfers.
Types of wire transfer
Essentially, there are two primary types of wire transfers. They are local and international wire transfers. Here is how both methods differ from each other.
Local wire transfer
It is also called a domestic wire transfer and involves sending Money within your home country. It is the perfect means for moving a large amount of money within the country, like buying a house or engaging in any capital projects at home.
International wire transfer
International wire transfers involve sending money from one country to another. Both individuals and businesses benefit from this express method of sending Money. The primary difference between local and international transfers is the involvement of foreign currency; usually, through (SWIFT) society for worldwide interbank financial telecommunication network. SWIFT is a messaging network used internationally by banks for sending and receiving information.
Now that you know the two types of wire transfer and their features, it is time to consider the benefits of making a wire transfer.
Benefits of a wire transfer
If you wonder about the benefits that come from knowing how to wire Money securely, here are a few to get you started.
- Wire transfers are secure
- They are dependable
- They are suitable for both local and international usage
- You enjoy the speed with sending and receiving funds
- A wire transfer is easy to use and does not require specialized knowledge.
Methods of wiring money
Generally, when people think of wire transfers, they usually think of services like the western union money transfer. However, the beauty of electronic transfers is that even banks facilitate them directly. Here are two crucial methods for sending money electronically.
Through interbank transfers
Interbank transfers facilitate sending Money from one bank to another. There are several ways of fostering an interbank transfer, either by visiting the bank in person or via online platforms. You can easily make paystubs online after completing a wire transfer to pay your workers if you run an enterprise. Additionally, your customers can pay outstanding bills through a wire transfer after receiving your online invoice. That way, you can easily track your financial information electronically regardless of your location.
Through money transfer services
Sometimes, they are regarded as financial intermediaries. Examples include western union money transfer, money gram, transferwise, etc. These intermediaries also facilitate the electronic transfer of money- wire transfers.
Now that you understand how a wire transfer works, the types, and the methods, it is time to learn the steps to execute a process securely. Below are six easy steps to help you through sending that large amount.
Six easy steps on how to wire Money securely
Decide early on your provider
Deciding on your provider is the first step to a safe and secure wire transfer. If you prefer an interbank transfer, you might check what method your bank supports- An in-person operation or an online operation. Alternatively, you can use a financial intermediary like western union, etc. When you decide early on your provider, it saves you from making rash decisions on the spot. That way, you are better positioned to make informed choices that are in your financial best interest.
Seek adequate information
When dealing with money or financial issues, sufficient information is your best friend. The reason is that inevitable financial mistakes are difficult to correct. As a result, you need to ask the right question and supply the correct information when initiating a transfer. It helps always to get the details of the recipient accurately to avoid any mishaps.
Be aware of the charges
Facilitating a wire transfer is a financial service. Therefore, you are subject to certain charges which you must pay. However, it can be problematic when you are ignorant of the charges. Usually, most bank transfers cost anywhere from $6 to $30. Although there are a few banks that may not charge you any fees for a transfer, like Harris bank, etc.
Fill the transfer form carefully.
Whether manually or electronically, filling out the transfer form is another critical step concerning how to wire Money securely. Essentially, you are supposed to get your spellings right because of the sensitive information involved. As a result, the slightest mistake could cost you your entire funds.
Verify or double-check all details
A double-check is always handy when dealing with vital information, especially financial information. In some cases, you might be needing, tracking or authorization number. After initiating a transfer, you should always ensure that you get a way of confirming delivery- your bank can send you a confirmatory message or email.
Preserve all receipts
After a wire transfer, it is good practice to preserve your receipt as proof of transfer. In most cases, your evidence of transfer will save you from encountering problems when your transfer action is in doubt.
Even though wire transfers are convenient, they require much care and precaution while using them. Regardless of the higher fees associated with this financial transaction method, they are still safe and secure for sending Money both within and outside the United States.
FAQS: What is the most secure way to wire money?
What is the most secure way to wire money?
The most secure way to send money is a wire transfer since it involves a direct transfer from one bank to another. Essentially, the lack of third-party involvement in handling your financial information makes it safe. Additionally, you can only send money to a recipient with a verified bank account, making it secure.
What risks are associated with receiving a wire transfer?
Although sending and receiving funds is relatively safe, nothing is 100% secure even though the wire transfer method is relatively safe. As a result, a few risks are associated with the wire transfer, credit risk, financial risk, operational risk, systemic risk, compliance risk, fraud risk, technology and security risks, etc.
Does the IRS look into wire transfers?
Usually, the IRS will only look into wire transfers when there is a suspicion of fraud or other financial risks. In such a situation, the IRS will execute an audit- IRS audit. That way, they can step into the matter to verify all information involved during the wiring process.