Wire Transfer Meaning. Wire transfers are also initiated and processed by banks whereas a clearing house deals with interbank payments in the ach environment. A wire transfer is a fast and reliable method of transferring or receiving funds.
A wire transfer is an electronic payment usually arranged from one bank account to another although its also possible to pay in cash with some banks and payment providers. No physical money is ever actually exchanged between the two banks just information. A wire transfer is a fast way to move money electronically from one person to another using a bank or a nonbank provider such as western union or transferwise.
When you send a wire payment no physical money changes hands.
In some cases a wire transfer fee is assessed on both ends of the transaction. It only involves two parties as opposed to three. Verifyerrors message verifyerrors verifyerrors message. Therefore the transfer is much quicker.