Wire transfers are one of the most popular ways for businesses to send and receive money. With a wire transfer, funds can be easily moved electronically from one financial institution to another, making for a quicker and more secure transfer payment. Here at Grasshopper, we understand that businesses need convenience and efficiency when it comes to transferring money, which is why we’ve outlined the basics of what you need to know about wires.
How do wire transfers work?
Bank wires are sent electronically through a wire network. In the U.S., wire transfers are managed by the Federal Reserve through FedWire.
To initiate a wire transfer, you’ll need to give some details to the bank, including:
- Your bank account number, ACH and ABA routing number
- The full name of your wire’s recipient
- The name of the recipient’s bank and the bank’s address
- The recipient’s address
- The amount of money being transferred
Once the information is provided, the bank will initiate the transaction, sending the wire transfer details to your recipient’s financial institution. That financial institution will then review the transaction details and see that the allotted funds are transferred.
How are wire transfers different from ACH payments?
ACH payments are another type of electronic fund transfer (EFT). While wire transfers are sent directly from one financial institution to another, an ACH payment must first pass through a clearing house network first before being sent to the receiving bank account. Because of this extra step, ACH payments often have slower processing speeds than wire transfers. For more information regarding ACH payments, check out our previous blog on the topic.
What are the benefits of wires?
Transferring funds via wire transfer has several advantages, including:
- Speed: Wire transfers move funds directly from one bank to another. Because of this, wires usually have faster processing times than other payment methods. Typically, incoming wire payments will get to you in as little as one business day.
- Security: Since wire transfers are a direct funds transfer, there’s a lower risk of fraud or error. This makes for a more secure payment method than options such as check payments.
- Convenience: Wire transfers can be done at any time through online or mobile banking.
- Volume: There’s no limit to the amount of wire transfers that you can make.
Sending wire transfers with Grasshopper
With an Innovator Business Checking Account, wire transfers are simple. Banking online means you’re in control of the movement of your funds. You can send or receive wires at any time, wherever you’re able access to your computer or mobile device.
As a Grasshopper client, you can gain access to unlimited wire transfers, as well as fee-free incoming domestic wires. For more information regarding the costs of sending and/or receiving wires, please refer to our Innovator Checking Fee Schedule.
By Michaela Lenahan in Money Movement
