Wire Transfer

A wire transfer refers to an electronic transfer of funds. Wire transfers are in the form of bank account transfer or cash transfer at a cash office. Bank wire transfers are the most common method of transferring funds between bank accounts. A bank wire transfer refers to the set of messages and instructions to the bank receiving fund. It means they should act on the instructions and effect the payment accordingly.

Mostly the large -scale -business transactions require a proper system for transferring funds avoiding the movement of physical cash. Money transfers came into vogue with the popularity of telegraph where money was transferred through money orders. After some time, it was possible to transfer money through wire.

Of late, the term bank transfer is used to refer domestic transactions or other transactions which do not involve any cash or cheque exchange. In such cases, the account balance is electronically transferred between banks.

More Glossary Terms Explained here