Business Making payments

What is the Difference Between Wire Transfer vs Bank Transfer: Key Differences Explained

Panna Kemenes

04.12.24

Read time 3 minutes

When you need to send money to suppliers, workers or other third parties, you may be unsure about whether to make a wire transfer or bank transfer. The terms are often used interchangeably, but they are in fact different transfer methods that are suitable for different types of payments.

This article explains the differences between a wire transfer vs bank transfer, comparing costs, speed and convenience, so you can choose which one is right for your needs.

💡For regular business payments, whether domestic or international, consider using Wise Business. Wise doesn’t charge hidden fees or markups, saving you money on each transaction.

What is a Wire Transfer vs Bank Transfer?

A wire transfer is an electronic money transfer that sends money between bank accounts directly. Banks and other payment providers typically use the secure SWIFT or Western Union networks to send payments in most currencies.

Wire transfers can be made to domestic accounts or accounts in other countries. But they tend to be used primarily for international payments or large transactions, as bank transfers are otherwise faster and cheaper.

A bank transfer is a local payment between two bank accounts directly. It’s the most common method of moving funds between accounts within the same or different banks and typically used for regular payments, such as payroll or utility bills.

Unlike wire transfers, which primarily use the SWIFT network, bank transfers use local routes, such as Automated Clearing House (ACH) in the US or Single Euro Payments Area (SEPA) in Europe. They transfer funds from the sending bank to the recipient bank without intermediaries, whereas wire transfers may have to go through third-party banks to reach the recipient.

Wire transfers tend to require additional information about the recipient to direct the funds correctly, such as their international bank account number (IBAN) and bank’s SWIFT code.

While both bank transfers and wire transfers are secured, banks often require senders to go through more authentication steps to approve wire transfers, such as answering security questions or entering a one-time passcode (OTP).

	Wire Transfer	Bank Transfer
Payment Type	Domestic or international	Domestic or local
Network	SWIFT/Western Union	ACH/bank network
Automatic/Manual	Manual	Automatic/manual
Send/Request	Send funds	Send and request funds
Processing Time	Same-day or next-day	1-3 business days
Cost	3-5% (varies by bank)	Low or no fees

Wire vs Bank Wire Transfer Cost Comparison

Banks and other payment providers can charge fees for processing both wire transfers and bank transfers, although most basic local bank transfers are free.

Charges can depend on the location, the amount being transferred, and the speed of the transaction, as well as the sending and receiving banks. Intermediary banks may also charge a fee.

Wire transfer fees tend to be higher, as they include specialized network and currency conversion charges. Domestic wire charges can range between $15–50, while charges for international wires can range from $30–80. However, bank charges can also be high for international transfers.

You should always compare fees for a direct bank transfer vs wire transfer before choosing a transfer method. If you're looking for a low-cost option for international payments, consider Wise Business.

Wise Business Account vs. Bank Wire Transfer

Service	Sending Domestic Transfer	Sending International Transfer	Receiving Transfers
Wire Transfer	$15–30	$30–80	$10-20
Wise Transfer	From 0.29%, or free payments between Wise accounts.	From 0.29% of the transfer amount, fee varies by currency.	(non-Swift/non-wire) Free to receive AUD, CAD, EUR, GBP, HUF, NZD, SGD, TRY with local account details. Free to receive Swift payments in 21 currencies. $6.11 flat fee for USD via wire and swift.

Wire Transfer vs Bank Transfer Speed and Convenience

Depending on the destination, wire transfers can be faster vs bank transfers, with funds arriving on the same day or within 24 hours of the sender initiating the transaction. However, wires to certain destinations can take up to five business days. Bank transfers can take 1–3 business days to complete, depending on the banks involved.

Wire transfers can be more reliable for businesses making urgent payments, large transfers, or international transactions. However, wire transfers may require a phone call or visit to your local bank branch or wire transfer provider, while bank transfers can also be set up online. For this reason, bank transfers are typically more convenient for recurring payments, local transfers, payroll, or moving funds between accounts.

Which transfer method you choose for your business will depend on your priorities—speed and security vs. cost and convenience—and this may vary for different transactions.

Discover Wise Business: The Low-Cost Way to Send and Receive Payments

Making payments on a regular basis can rack up bank charges, especially in currency conversion charges and other international payment fees. However, a Wise Business account can help you save money. Wise provides a cheap, fast and secure way of moving money overseas. There are no monthly account fees, and you can send and receive international payments at the mid-market exchange rate.

Start Saving Money Today🚀

You can hold more than 40 currencies and manage them all in one place, and you can receive payments like a local with major currency account numbers.

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.