Wondering what wire transfers are?
Curious about USAA routing numbers? If that’s the case you’ve come to the right place. We’re going to give you the down low on wire transfers and help you understand what the term means and how you can use wire transfers. And don’t worry, despite the fact that such transfers are special financial tools, they are actually pretty straight forward.
A wire transfer is a type of electronic transfer that allows you to transfer money from one account to another. Such transfers are most often not used to purchase goods but instead to take money in one account and put it in another. Often times you will be transferring money from one of your own accounts to another of your accounts. However, that won’t always be the case.
Wire transfers are perhaps the oldest form of electronic payment, far preceding the age of computers. Wire transfers have been around since the invention of telegraph lines in the 19th century, which is where they got their name from. It might be hard for us to imagine a world where electricity and electronic communication was almost unheard of. However, in the 1800’s, there were very few such technologies.
These electronic transfers quickly became very popular because it allowed people to quickly and easily transfer money across the country, and even the world. Gone were the days when people had to carry all of their money on them. Instead, money could be transferred almost instantly across massive distances.
Often, if you go to open a stock account, or anything similar, you will be asked to wire money from your bank into your stock account. This is often the fastest and cheapest way to transfer money, which is why it is popular.
Wondering how to wire money?
We should let you know that many banks and financial institutions have their own methods for sending wires, but there are some things that most institutions have in common. You’ll have to fill out all the forms and paperwork to process a transfer. This will normally require your bank account number, address, and other information. Make sure you have this info on hand if you’re trying to make a transfer.
Most banks will require that you provide IBAN and BIC codes. The IBAN refers to the internationally recognized number for your bank account. The BIC number is the international code that allows banks to find other banks and organizations around the world. Once the banks have this information in hand they will know where to send the money and where to take it from.
Once banks have all the information they will use a secure system such as SWIFT wire or Fedwire. The information in this wire will include a settlement amount and other important information to let the receiving bank know how much you are transferring and how much to put into what account. After the settlement is sent the bank will either send actual money to the other bank, or both banks will hold equal amounts of money for one another.
Beware of Scams
We should warn you, however, that the settlement and payment process has given way to scams. Problem is, it’s possible to send false transfers and the bank will even deposit money into your account. When the bank goes to clear the payment, however, they will come to realize that the deposit was fake and then take the money back. So if someone is offering to wire you money for whatever reason, be wary.
Nearly all banks support wire transfers. Whether it’s a Bank of America wire transfer, or a JP Morgan Chase transfer, you’ll have plenty of options if you want to wire money. Make sure you check with your specific bank to find out details and ask questions. While the process is mostly standardized there can be some slight differences from bank to bank.