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Bank wire transfers offer one of the easiest and quickest ways to send money to distant individuals. This transaction method reduces all the paperwork of checks but can also act as a conduit for potential fraud.
The Facts
A bank wire transfer is an electronic funds transfer from one bank account to another, without the need for a physical check.
Features
Banks have an electronic ID code called SWIFT, which acts much like a screen name, and usually needed to send a wire transfer. Alternatively, international bank accounts (except those in the U.S.) can implement a worldwide account number called IBAN (International Bank Account Number) to facilitate wire transfers.
Types
Bank wire transfers can go to other private accounts or are used for commercial transactions. Commercial wire transfers require an invoice number, company name and ID in addition to standard information such as the name and address of the sender and receiver, bank details and account numbers.
Considerations
Bank wire transfers usually cost a fee for the sender and person receiving the transfer. International transfers tend to cost a premium over domestic wire transfers.
Warning
Scam artists on the Internet often use the promise of a bank wire transfer as part of a scam to steal identities, the FBI warns. Spam emails that offer money for revealing sensitive information are almost always a scam.
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