Wire transfer definition
A wire transfer is an electronic method of sending money from one bank account to another, either domestically or internationally. While domestic wire transfers typically use local systems (like Fedwire in the US or SEPA in Europe), international money transfers are most often processed through the SWIFT network. These transfers allow businesses and individuals to send money globally in a wide range of currencies, including USD, EUR, GBP, CNY, and JPY.
The benefits of using wire transfers
The main advantage of wire transfers is their global reach and reliability. SWIFT, the most common network for international wire transfers, enables secure cross-border payments even when the sending and receiving banks don’t have a direct relationship. It’s a trusted solution for high-value transfers where speed, security, and traceability are crucial. Wire transfers also offer flexibility in who covers the associated fees – sender, recipient, or shared.
Good to know for SMEs and beyond
Wire transfers are a dependable option for companies of all sizes when local bank transfers aren’t available – especially for transactions involving less common currencies or destinations lacking local payment infrastructure. However, they come at a cost: fees can range from 3–5% of the total amount due to intermediary bank charges and currency exchange spreads. For this reason, wire transfers are best reserved for situations where alternatives like ACH or local bank transfers aren’t feasible, as those typically offer faster processing times and significantly lower costs.
Send and receive money globally with amnis
With amnis, your business can send and receive money in 20+ currencies through one digital platform. Benefit from local payment options like ACH, SEPA, and UK Faster Payments for faster, low-cost transfers – and rely on SWIFT when local routes aren’t available. Plus, enjoy added flexibility with the amnis business debit card.
Explore related topics
ACH, or Automated Clearing House, is a local payment route in the United States that facilitates electronic money transfers between banks. It requires a local bank account or the use of local payment providers. ACH payments enable financial institutions to transfer funds electronically, bypassing traditional card networks like Visa and Mastercard. It’s commonly used for direct deposits, bill payments and other bank-to-bank transfers within the United States.
An MT103 is a standardised payment message issued by the bank within the SWIFT network, serving as an official confirmation of a completed transfer. It includes all relevant payment details, such as the date, amount, currency, and information about the sender and recipient. The MT103 document thus provides a reliable basis for transactions requiring payment confirmation, such as deliveries or services.
About amnis
amnis offers a comprehensive platform for international banking, offering a range of tools in one place. Transfer money abroad, exchange currencies 24/7 and collect international money transfer with your own IBAN accounts supporting 20+ currencies. Founded in 2014 in Zurich, amnis is a regulated payment institution under the supervision of the Banking Supervision Section in Liechtenstein (FMA) within the EEA.