A wire transfer is a real-time electronic payment that moves funds directly from one bank account to another — domestically or internationally. Wires are fast and final: once sent, they generally cannot be reversed. Domestic wires typically cost $15–$50 per transfer.
A wire transfer is a direct, bank-to-bank electronic payment that settles in real time or within a few hours — far faster than an ACH transfer. Because funds are cleared immediately and the transaction is final, wire transfers are the standard method for large or time-sensitive payments: real estate closings, business acquisitions, large vendor payments, and international remittances. The speed and finality that make wires useful also make them a common vehicle for fraud, since you generally cannot recall the funds once sent.
Domestic wires move funds between U.S. bank accounts through the Fedwire Funds Service (operated by the Federal Reserve) or the Clearing House Interbank Payments System (CHIPS). They typically settle the same business day if initiated before the bank's cutoff. International wires (often called SWIFT transfers) route through correspondent banks and may add 1–5 business days for settlement and additional fees. The CFPB's guide to international remittances explains consumer protections for cross-border transfers.
Business email compromise (BEC) — where fraudsters impersonate a vendor or executive to trick someone into sending a wire to a fraudulent account — is consistently one of the costliest cybercrime categories. Before sending any large wire, verify payment instructions by calling the recipient on a known phone number, not by replying to an email. The CFPB warns consumers to treat wire instruction changes with extreme caution.
Use a wire when speed is critical (same-day settlement required), the amount is large, or the payment is international. Use ACH for routine domestic payments — payroll, vendor ACH, bill pay — where 1–3 day settlement is acceptable and cost savings matter.