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Wire transfers are electronic transfers of funds between individuals through financial institutions, often used for bill payments. Routing numbers identify the financial agency involved, and fees are charged by both sending and receiving institutions. Retail wire transfer companies charge fees and processing times vary.
A wire transfer is an electronic transfer of funds between individuals through one or more financial institutions, often from an individual’s bank account to another person’s bank account, whether domestic or international. Also, wire transfers are commonly used to pay bills with a bank account, sometimes in the form of an electronic check. A bank transfer routing number identifies the financial agency that makes the electronic transfer, both sending and receiving, in the same way that a bank account number identifies the person sending or receiving the funds. Bank transfers are an efficient and secure method of sending money. There are also wire transfer companies that do wire transfers for people without bank accounts, these agencies are also identifiable by a wire transfer routing number.
Similar to a routing number on a check, this routing number identifies one bank to another when a transfer is received. In addition, a routing number identifies the institution to which the funds will be transferred to the transferring institution. When a bank receives a wire transfer, it also receives the bank account numbers of the people who send and receive the funds in order to route the funds from one institution to another and from one person to another.
When used for electronic bill payment, a wire transfer routing number identifies the individual bank and account to the agency receiving the payment financial institution to transmit the specified funds. In most cases, both sending and receiving institutions will charge a service fee for a wire transfer. When money is transferred between individuals, the sender will pay a fee to their bank and the receiving person will have a fee deducted from the amount received by their bank. In bill payment transactions, both the bank and the agency receiving the payment may charge the person paying the bill.
Retail wire transfer companies typically maintain a retail location to process cash for electronic funds transfers. These agencies also charge a fee for their services, and in some cases both senders and recipients may have to pay for the services. Despite the seemingly instantaneous speed of wire transfers, most wire transfers require a certain amount of processing time, which can be several hours or several days, depending on the institutions involved. Domestic transfers are normally made bank-to-bank with a bank transfer routing number, while banks generally make international transfers through an agency that specializes in global transfers.
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