| Wire transfers are more common than you may | | | | of transactions may cost nothing to complete. |
| think. The name "wire transfer" can be misleading in | | | | Another type of wire transfer is when you sign up |
| this day and age. At one time, they meant | | | | for automatic bill paying through your bank. This type |
| transactions that were conducted through such | | | | of bill paying is becoming more popular as technology |
| services as Western Union, but not anymore. Today, | | | | makes it easier and safer to use. Many utility |
| wire transfers take place all the time, whether we | | | | companies, such as your water, electric, and phone, |
| know that they are happening with our transactions | | | | use automatic bill paying as a means of collecting their |
| or not. | | | | payments. As long as you are relatively sure that the |
| In basic terms, a wire transfer is simply the electronic | | | | funds will be in your account on the date they are |
| transfer of money. Wire transfers can take place | | | | accessed by the billing company this can be a good |
| with virtually any size entity. Banks will often transfer | | | | way to pay bills without having the hassles of mailing |
| huge sums of money between themselves via wire, | | | | them off. |
| even though no actual cash is being moved. The | | | | The downside to automatic payments is that the |
| accounting procedures for these types of transaction | | | | money has to be in your account or the bill will not |
| are all electronic. This is a very secure way to move | | | | process through. This can lead to confusion and |
| large amounts of money. | | | | possible cut off of services if you do not monitor |
| Wire transfers are also used for such transactions as | | | | your bank account closely. |
| credit card balance transfers. Again, there is no actual | | | | Lastly, you can still use the wire transfer services of |
| cash money moved during this process. Transferring | | | | third-party companies such as Western Union. This |
| money from your savings account into your checking | | | | can be very useful if you need to send money to |
| account is a wire transfer. Most people have used an | | | | someone who does not have a bank account or is |
| ATM card to purchase something and that is a wire | | | | not able to receive funds in a more traditional way. |
| transfer as well. When you pass your ATM card | | | | There are, of course, fees associated with these |
| through the machine at the retailer, you are | | | | types of wire transfers and those fees are usually |
| authorizing a wire transfer to take place. In essence, | | | | based on the amount of money that is being sent. |
| this allows funds to be moved from your account | | | | A good place to learn more about wire transfers and |
| into the account of the vendor. | | | | how they help you is at your local bank. They can |
| A wire transfer may or may not be free to the | | | | assist you in setting up various transfer plans if you |
| consumer. Some Point of Sale (POS) transactions | | | | wish to do so. They can also explain to you the |
| may cost you a small fee to complete. Other types | | | | safety and security features of wire transfers. |