The implementation of technology has eased many segments of human life. Right from medical to banking processes, every activity can be completed with the ease of one click.
As the name suggests, ‘Wire Transfer’ is all about the electronic transfer of funds that can be performed globally through a network of interconnected banks at any point in time.
It is one of the helpful technique to transfer funds quickly to family and friends overseas. Internationalized banks provide flexibility to the business investors who hold a foreign or offshore bank account to ease the transactions.
This guide focuses on the complete working mechanism of wire transfers beneficial for any business investor or entrepreneur. Let’s start with the basics.
What is Wire Transfer?
Western Union first introduced the concept of online money in 1872, which was backed by telegraph technology. The complete transaction from one account to another was completed by using a set of codes and passwords.
On a later date, with the advanced use of technology and the internet, the process was built more efficiently to deal with global payments.
There are two types of wire transfer, namely:
- Bank wire transfer
- Wire transfer through global payment service
Key Considerations of Wire Transfer
While dealing with the wire transfer process, there are a set of considerations that are to be kept in mind:
- The limited amount of money to be transferred
- The daily transaction limit
- Wire transfer processing time
- The wire transfer fees to be paid
How to Transfer Money Using Wire Transfer?
To transfer money using the wire transfer process, one has to go through the following procedure:
1. Choose a Wire Transfer Provider
The very first step is to select a wire transfer service provider to initiate the process. You can carry out the process with your bank if you already have a savings bank account.
The next option you can opt for is going ahead with a non-bank transfer provider (Western Union or MoneyGram).
2. Provide the Transaction Details
The next move is to provide the complete essential transaction details to the service provider. In general, the following are to be submitted:
- A copy of government ID-proof
- Details regarding the source of funds
- Transfer recipients details
- Transfer recipients bank name and address
- Bank account number and contact details
If the transaction is to be made in another bank, you need to provide a Society for Welfare Interbank Financial Telecommunication (SWIFT) Code.
3. Review the Complete Terms and Conditions
Make sure to review the complete terms and conditions before you proceed with the transaction. The minute you provide the details and verified, the wire transfer fee will get deducted from your bank account.
4. Transfer Process Gets Initiated
After submission and verification of the details and transfer fee, the complete process gets initiated. Keep a check to obtain a confirmation number from the bank, which will help you easily track the payment.
Wire Transfer in Offshore Business
Today, offshoring has been one of the best modes of investment that is widely accepted by business investors globally.
The wire transfer turns out to be a feasible option for the business investors under the following circumstances:
- Transfer funds to tax-haven countries
- To transfer the amount to the non-account holders
- Move a large number of funds
- Deal with forex trading and other international investment proceedings
Advantages of Wire Transfer
The mechanism provides different benefits to the end-user, which involves:
- High-end secure movement of money
- Access to the funds at an immediate basis
- Easy global transfers
- Feasible to carry out offshore banking processes
Wire transfer is a safe and secure procedure opted by global business investors and individuals. Be it an individual or corporate transaction, wire transfer has been a quick solution to all the transaction issues.
Today, most business investors internationally deal with the same process by opening an offshore bank account in any of the popular offshore jurisdictions, which can easily be carried out using a paid service.
Experts at Business Setup Worldwide are well-versed with the relevant processes and can quickly assist you in the complete process.
If you hold any query, feel free to have a word with our business advisors. Contact us today-we’d be glad to assist!