- Wire transfers are money exchanges in which funds are electronically transferred between banks. The transfers can be domestic or international and are monitored by SWIFT, a company that serves, according to its website, as the "global provider of secure financial messaging services." International banks, brokerage firms and financial institutions are assigned a number that allows the transaction to go to the proper receiver. SWIFT does not transfer assets but merely transfers information indicating the transfer of assets. There is often a fee for an international wire transfer.
- BIC stands for bank identification code. IBAN stands for international bank account number. All SWIFT-member banks have a BIC that identifies them by organization, region and country. IBANs have been created for all banks that participate in the European Union and is printed on bank statements. An institution does not need to be a member to receive a BIC and have assets transferred to it.
- Wire transfers occur between institutions as part of business or on behalf of individuals or organizations by two financial institutions. There is the sending party and their bank (or institution) and the receiving party and their institution. The sending party must have the name, address, bank account number and either a BIC or an IBAN in order get the money to the proper party. The receiving party merely needs to confirm receipt of the wire transfer, and might be charged a fee for the transaction.
