Wire Transfer
Wire transfer is a money-sending service in which funds are transferred from one bank account to another via a routing and account number. These two numbers are a bank account’s fingerprint; a combination that is unique to each account. On the bottom of any check, there are three numbers. The first is generally the routing (or transit) number, and almost always starts with a zero. The routing number establishes what bank the account is located in. Next is the bank account number. This number establishes which account within the bank the money must be sent to. It is usually 10 digits, but can vary from banking institution to institution. The next number is the check number, and is irrelevant when it comes to wire transfers.
One of the advantages of a wire transfer is the ease of use. Anyone with a bank account can send or receive money easily. Moreover, the service is very secure. Just like bank accounts are FDIC insured, wire transfers are insured and guaranteed. They aren’t as quick as services like Western Union, and can take up to 3-4 days to complete.
Most banks offer a wire transfer service, but the fees can vary. Twenty-five dollars per transaction seems to be the norm, but some banks even offer a few free wire transfers with a paid checking account. This fee is comparable with services like Western Union, and is probably even more secure.
Certainly, the choice between using a wire transfer or a service like Western Union is difficult, but both seem to be secure and quick. The fees are a bit steep, but the sender is generally paying for the convenience of the service.