Wire Transfer
A wire transfer is an electronic funds transfer sent directly between banks, typically settling on the same day for domestic transfers and 1–2 days for international.
Domestic wire transfers in the US settle through Fedwire (operated by the Federal Reserve) or CHIPS (Clearing House Interbank Payments System). Wires are irrevocable — once sent, they cannot be recalled without the recipient's cooperation — making them appropriate for high-value, time-sensitive transactions where finality matters.
Wire economics: domestic wires typically cost $15–$35 per transaction to send and $10–$20 to receive, depending on the bank. International wires (SWIFT) cost $25–$65 outbound and involve correspondent bank fees that reduce the amount received. These fees are relatively fixed regardless of transaction size — making wires economically efficient for large transactions.
For embedded finance programs, wire transfer capability requires the sponsor bank to support Fedwire origination, a higher-risk activity that not all sponsor banks enable for fintech programs. Programs requiring large-value disbursements (real estate, insurance, commercial transactions) need to confirm wire capability in the bank relationship negotiation.