How to wire money in five steps 2020

How to wire money 2020

Choose a provider and transfer method, research the costs and collect the necessary information. Don’t forget to save the receipt.

Wiring money is one of the fastest ways to send money, whether it’s across the country or outside the United States. We are going to cover How to wire money in five simple steps 2020.

A wire transfer is also harder to undo than writing a check or paying a bill via credit card. So, the first thing you need to know when you’re ready to wire money is that you’re 100% sure you don’t mind the money leaving your account — quickly, and forever. Wiring money takes anywhere from a few minutes to a few days, but once you’ve started the process, you have to assume that the cash is gone.

Once you’re sure you’re ready to go through with it, a wire transfer is a pretty easy process.

Requirements

  • Government-issued ID and/or online account access.
  • Account funded with at least the amount you want to send.
  • Bank account number (found on a bank statement, a check or your online account).
  • Recipient’s full name and contact information.
  • Recipient bank’s name, address and phone number.
  • Recipient bank’s transit number or equivalent.
  • Recipient’s bank account number.
  • Additional information based on your bank’s instructions.
  • If applicable, information about the intermediary bank your recipient’s bank uses for international transfers.

Where to find it

  • Within the U.S., this is a nine-digit code called the American Banking Association routing transit number, which can be found here or by asking the recipient.
  • Abroad, this is a bank identification code, such as a SWIFT code. SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, uses an eight- or 11-character code that identifies specific banks internationally and is in the standard bank identification code format. Ask the receipient for this code.

How to Wire Money

Follow these five steps to learn how to wire money successfully:

  • Step 1: Decide which provider you will use to wire money.
  • Step 2: Check costs and choose the transfer method.
  • Step 3: Make a list of your information.
  • Step 4: Fill out the required Form for the wire transfer carefully.
  • Step 5: Keep your receipt to document the transfer.

Step 1: Decide who you’re going to use to wire the money.

There are two types of institutions that provide wire transfers: traditional banks and credit unions, and nonbank money transfer providers such as Western UnionMoneyGram, and Ria.

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Depending on which service you choose, and how much money you wish to send, you might be able to complete your transfer online. Otherwise, you’ll have to go to the provider in person.

Step 2: Check costs and choose the transfer method

As of 2015, domestic wire transfers cost an average of $27.50 for the sender and $15.50 for the recipient, according to an analysis of fees at the top 10 banks in the U.S. by MyBankTracker. Fees were higher for international transfers, ranging from $40 to $50.

Wire transfer fees may be cheaper at credit unions, but regardless of which type of provider you use, the most important thing is to ask about all the fees, up front, before sending any money. For one thing, you’ll want to make sure that you have enough to cover the fees, as well as sending the cash. Check with your institution beforehand, so that there won’t be any surprises.

Step 3: Make a list of your information (and check it twice).

As listed on the requirements above, to send a wire transfer, you’ll need the following information:

  • Your bank account number.
  • recipient’s name.
  • The recipient’s bank name and address.
  • recipient’s bank’s American Bankers Association number, commonly called a routing number (for transfers within the U.S.) or Bank Identifier Code (outside the U.S.).
  • The recipient’s bank account number.
  • Any other information required by your bank or money transfer provider or the recipient’s bank.

Step 4: Fill out the wire transfer form/online submission form carefully.

Follow the provider’s instructions for filling out the form, and be certain that you use the right account numbers. It’s important to make sure you fill out all the information correctly, to ensure that your transfer goes through — and that it goes to the person and bank account you intend.

This is the most important part in this guide (wire money in five steps 2020)If you send cash to the wrong account number, it may be difficult to get it back. There’s no automatic process for reversing wire transfers made in error.

Step 5: Keep your receipt and ask about next steps.

If you send the money in person, ask the teller how long the transfer should take, and be sure to hold on to your receipt with the wire transaction number, for your records.

Avoid These Costly Mistakes When Wiring Money

After writing this guide on wire money in five steps 2020, i have to include the costly mistakes i see people make when wiring money and i have compiled it here :

  • Making typos on account numbers or recipient names. It bears repeating: If your account numbers are off by a single digit, you could wind up with a blocked transfer — or worse, one that goes through, but to the wrong person. You also need the full, correctly spelled name of the recipient, in order to ensure that the money goes through.
  • Forgetting about the exchange rate for foreign transfers. Sending money abroad? How much cash arrives will depend on the exchange rate when you send the money. If the recipient is waiting for a set amount, it pays to know what the exchange rate is when you’re wiring the cash.
  • Sending cash more often or more quickly than necessary: If you know you’ll need to send money on a regular basis — for example, to a student who’s studying abroad — it might make sense to send more money, less often, since those wire transfer fees can start to add up. It’s also smart to plan ahead whenever possible, so that you don’t have to send money in a rush, which might incur additional fees.
  • Not converting dollars to foreign currency: When you make an international transfer, you start with dollars and you expect the right currency to arrive to your recipient’s bank account. But when the currency conversion happens matters. If you skip converting on your end, the transfer can be rejected at the other end, or the foreign bank might convert the money at a higher exchange rate or for a fee. This can put a strain on the recipient, especially if it results in delivery delays or the person receives less money than expected.
  • Looking only at upfront fees : There are two main costs when sending international money transfers.
    • The first is the service fee providers charge for sending money.
    • The second is what you end up paying to change dollars into the currency of the country you’re sending money to.
  • This cost depends on the foreign exchange rate between the two currencies, say, dollars and Mexican pesos, which differs by provider. Banks and other providers generally mark customer exchange rates up to make a profit on a transfer.
    • For example, a bank might receive euros at a rate of $1 to 0.89 euros, meaning $1,000 would be 890 euros. When you transfer $1,000, though, your bank gives you a less favorable exchange rate of, say, $1 to 0.86 euros, meaning you’re sending only 860 euros. That’s 3.4% less, and the transfer would cost you the equivalent of $34 on top of the bank’s fee.

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How to wire money in five steps 2020

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