A wire transfer can be performed directly from one bank to another, through an independent carrier, such as Western Union, or through a debit or credit card from a computer or phone. It is a fast, secure way to send money electronically from one entity to another, according to About.com.Continue Reading
Certain conditions have to be met for a wire transfer, especially when transferring funds directly between banks, to ensure that the transfer is funded and secure. When doing a transfer of cash in person, the sender needs to show a valid ID and submit the cash with a form showing the recipient's name, address, phone numbers and specific user control numbers for Western Union transfers, according to Western Union. Transferring funds from a bank account through computer or phone also requires identification of some sort, often a log-in to the individual account or bank site, and is often guaranteed by a credit or debit card.
Wiring money not only requires specific information and forms, but it can also cost money. Wire transfer fees in 2014 run about $40, according to About.com. Sometimes, the transfer fee is a percentage of the amount being sent, such as PayPal's service fees for business transactions. It's easy to check on what transfer fees are with any given bank because they're usually in the list of service charges that accompany accounts. Often, transfer fees vary depending on what type of transfer it is. For example, when wiring money to pay a bill, the fee may be different from one incurred sending money "friend to friend."Learn more about Personal Banking