What Is a Wire Transfer Fee?
Wire transfer is an electronic service for sending money between accounts and institutions. Funds are withdrawn from the account at one location and then credited to a destination account. Fees for this service are called wire transfer fees.
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Terminology
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All transfer transactions are wire transactions in that modern money and banking institutions utilize computer systems. Wire transfer fees may be charged to the person sending funds as well as to the person receiving the funds.
Transaction Fees
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The formal term, wire transfer, is used when banks transfer funds with other, external institutions. All fees for transactions may be considered a type of wire transfer fee. ATM transactions are an example of wire transfers. People access a bank account from a remote location and fees are charged, depending on the banks involved in the transfer.
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National and International Wire Transfer Fees
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Banks differentiate between money sent to domestic locations (within national borders) and money sent to locations abroad. Fees vary by institution, but international wire transfers are traditionally more expensive than domestic transactions.
Internal Wire Transfer Fees
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A bank may not charge a wire transfer fee to customers who wish to transfer money to accounts at another branch of the same bank. For example, consumers are not charged by their bank if they access ATMs owned by that bank. Similarly, account holders at the same bank might not be charged if they transfer money between accounts, but such cases depend on the banking institution's policy for transfer transactions.
Institutions
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Banks and wire transfer services charge fees for wiring money. Credit card companies may also charge fees for wire transfer services. Transactions may be conducted in person at the transfer institution or on the Internet. Wire transfer fees are at the discretion of the institution.
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References
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