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