Glossary · Payment methods
Wire transfer
Also called Bank wire, SWIFT transfer
A wire transfer is a bank-to-bank payment sent individually, typically same day domestically and through the SWIFT network internationally.
A wire moves money from one bank account to another as a single, individually processed payment. Domestic wires in the US run over Fedwire and settle the same day; international wires travel through SWIFT, often passing through one or more correspondent banks.
Each bank in the chain can take a fee. The sender chooses who pays: OUR (the sender pays all charges), SHA (each side pays its own bank) or BEN (the recipient pays all). Under SHA and BEN, the amount that arrives can be less than the invoice, leaving a short payment to chase or write off.
Wires are fast and final, which is also why fraudsters target them: once sent to the wrong account, a wire is hard to recover.
Example
A German client wires $10,000 to a US contractor with SHA charges. An intermediary bank takes $25, so $9,975 arrives. The contractor’s next invoice states that charges are for the payer (OUR).