These types of transactions process through the Automated Clearing House, like electronic checks and bill payments Some electronic funds transfers are referred to as wires but not processed through the most common bank and nonbank networks outlined above. For example, if your U.S.-based bank or credit union sends a wire transfer to a bank in Germany, it’s considered an international wire transfer. International wire transfers are those where the sending and receiving banks are located in different countries. For example, a wire sent from a bank in New York to one in California would be considered a domestic wire. Domestic Wire Transfersĭomestic wire transfers are sent and received in the same country of origin. Wire transfers are domestic or international, depending on where the transfer originates and its destination. That coded message authorized the release of funds to the person on the other end. The telegraph office would then send a coded message to the telegraph office closest to the recipient. To send money over long distances, customers would go to a telegraph office and make their payment. The term “wire transfer” goes back to when long-distance communication was done over telegraph wires. Most commonly, the term “wire transfer” refers to bank wires, which transfer money between banks using networks such as the Fedwire Funds Service (Fedwire for short) or Society for Worldwide Interbank Financial Telecommunication (SWIFT).
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