Why Americans Wire Transfer Money
Wire transfers are one method of sending money to another account. Extra costs are involved in wire transfers. Advantages of wire transfers include speed, privacy and accessibility. Wire transfers include security benefits and risks.
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Speed
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Speed is an advantage of wire transfers. Wire transfers are faster than mailing a check, as a check may take days and sometimes weeks to deliver, especially if sent outside America. Western Union is famous in America for providing wire transfer services. According to Scotia Bank, an agent of Western Union, a Western Union wire transfer may clear in 10 minutes if sent through Scotia Bank.
Security Benefits
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Wire transfers provide certain security advantages. Sending a check involves risk as there is always a possibility that the check is intercepted. A thief can take the check out of the mail and either cash it or use it to produce additional fake checks. Wire transfers are also more secure than transferring money over the public Internet, where there is also a higher risk of interception.
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Accessibility
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Wire transfers can reach locations that are inaccessible by other methods. American immigrants often send money to their families in other countries to support them. American business owners also hire workers in other countries and send money to other countries to pay their workers. Not all of these countries have reliable postal systems that can deliver checks safely. It's not necessary to go to a bank to receive the transfer, which is helpful as bank storefronts are less common in other countries. Many shops, supermarkets, restaurants and convenience stores can handle wire transfers.
Privacy
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Local cash sending shops provide privacy. The wire transfer is a communication from one bank account to another. The method provides the security of a transfer between known accounts, without giving away additional personal information about the sender and the receiver. The Society for Worldwide Interbank Financial Telecommunication, a Belgian cooperative, provides the SWIFT number used as identification in wire transfers. SWIFT provides information to American government agencies, so Americans' wire transfer information may be subpoenaed, especially if the American government suspects the wire transfers are linked to terrorist groups.
Security Drawbacks
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There are security drawbacks to wire transfers. Other banks along the transfer route, especially if their banking regulations differ from America's, may deduct additional fees. Wire transfers are used in scams. The FTC warns auction buyers to be careful if the seller will only accept a wire transfer. Some con artists prey on Americans and offer auction items through a wire transfer that is harder to trace than a debit or credit transaction.
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