Wire transfer

Although the genesis of the idea dates as far back as the giro, the modern wire transfer was a product of the telegraph companies, which made it possible to wire a money order from one office to another. Later, it became possible to wire money between banks, which is essentially the same process as the giro.
In modern times, the word wire transfer or bank transfer (sometimes combined as bank wire transfer) is used for domestic or international transactions where no cash or cheque exchange is involved, but the account balance is directly (electronically) transferred from one bank to the other. A transfer might be done to support relatives, rescue travelers in unexpected emergencies, or to pay a business transaction.
[edit] Overview of process Bank wire transfers are often the most expedient method for transferring funds between bank accounts. A bank wire transfer is effected as follows:The sending bank transmits a secure message (via a secure system such as SWIFT, or Fedwire) to the receiving bank, requesting that they effect payment in accordance with the instructions given. The message also includes settlement instructions.
The actual itself is virtually instantaneous, requiring no longer for transmission than a telephone call. The banks involved must either hold a reciprocal account with each other, or the payment must be sent to a bank with such an account, or a correspondent bank, for further benefit to the ultimate recipient. [1]
[edit] RegulationBank transfer is the most common payment method in Europe[citation needed], with several million transactions done each day. While in 2002 the European Commission has regulated the fees banks may charge for payments in Euro between European Union member countries down to the domestic level (see the Regulation (EC) No 2560/2001 of the European Parliament and of the Council of 19 December 2001), resulting in either very low or no fees for transfers within the eurozone, international wire transfers outside this limited scope can be quite expensive.In the United States, wire transfers within the country are governed by the following regulations:
Federal Regulation J [2] Article 4A of the Uniform Commercial Code. [3][edit] Security featuresWire transfer, done bank-to-bank, is considered the safest international payment method. Both account holders must have a proven identity, and there is little possibility of a chargeback, although wires can be recalled. Additionally, information contained in wires is transmitted securely through encrypted communications methods. The price of bank wire transfers vary widely depending on the bank and its location, and in some countries the fee associated with the service can be costly.
Wire transfers done through cash offices, however, are more-or-less anonymous and designed for funds transfer between persons who trust each other. It is unsafe to send money by wire for an unknown person to be collected at a cash office. The receiver of the funds may, after collecting them, simply disappear. This method of scam has been often used especially in so-called Nigerian letters, also known as advance fee fraud or a "419 scam".Transfers in the United States are subject to monitoring by the Office of Foreign Assets Control, or OFAC. OFAC monitors information provided in the text of the wire to determine if money is being transferred to terrorist organizations or countries or entities currently under sanction by the United States government. If a financial institution suspects that funds are being sent from or to one of these entities, they must block the transfer and freeze the funds. [4]