Wire transfers are an extensively used process in which money is electronically transferred from one place to another with the help of a certain money transfer service. This process is mainly used for cross-border payments or to send money to friends, relatives, and families overseas.
As the relevant sender sends money from their bank account through a wire transfer service, this sum can either go to the bank account of the receiver directly or they receive the sum in cash by visiting the partner sites of the wire transfer company used by the sender. You can seamlessly send money in your selected foreign currency through wire transfers.
Like all payment and money transfer systems, the process of wire transfers also has certain pros and cons.
Fast: Wired money is received and sent in real-time. As soon as the sender is done with the transfer, the receiver would be able to claim the money right away from the bank. This makes a wire transfer a lot more attractive option than the traditional system of sending money through bank deposit, where there generally is a clearing period of a couple of days depending on the bank policy.
Convenient: Companies offering wire transfer services are found across the planet, and hence you can both send and receive money through this system from almost anywhere. Nowadays, you also get the facility to complete the whole process online, right from the comforts of your home. Wire transfer solutions are extensively accessible and easier to process. Cross border wire transfer also allows you to get money in your currency, thereby doing away with the hassle of converting currencies each time you receive foreign payments.
Safe: Wire transfers are majorly a safe and secure means of making payments. There are specific regulations set for international wire transfers that have to be followed by all companies providing wire transfer services. Therefore, one can be adequately assured that their money would reach the receiver safely through this process.
Nonreversible: A wire transfer would be non-reversible as soon as it is completed. There is no scope for the sender to get back their money in the situation where they change their mind. This makes wire transfers a bit risky if the sender is paying the receiver before receiving the desired goods or services.
Chances of scamming: Wire transfers can be carried out anonymously. In most cases, people would only need transaction codes or tracking numbers to claim the money, which increases the risks of scams.
Fee: A certain fee would be charged for each wire transaction by the relevant service provider. The fee charged for international money transfers can be quite higher in comparison to the domestic money transfer process.
A great alternative to wire transfers is Escrow service by reputed escrow providers such as Tazapay. They hold the funds until all the obligations are met by both the seller and the buyer, thus bringing in more transparency.