Australian National Transfer Market

Online wire transfers are among the most convenient types to effect. Combining technology and funds transfers, transferring money from one person to another has never been easier. Simply by logging online and navigating to an appropriate website, the sender can start a wire transfer in only a few clicks. The receiver can take possession of funds in as little as a few hours, depending on transfer destination—a local office or a bank account.

Online Process

Identical in basic method to traditional wire transfers, a sending entity presents funds for transfer to the receiving entity. The sender identifies the ending location and provides all applicable information and pays any sending fees.

The information is verified, and the transfer is initiated.

The receiver presents proper identification and receives the transferred funds.

The exact process, the transfer duration and costs depending on several factors: Different methods use different pathways, can take less or more time than others, and can incur greater or lesser fees to the sender or the receiver.

Usually, online wire transfers that cross borders can take slightly longer than domestic wire transfers because different countries have different processes, regulations and costs.

Two general types of online wire transfers are common: Money is wired via traditional paths but initiated online or an abbreviated method that may entail as little as contact information for the recipient and can be virtually instant.

Banks

If an online wire transfer is through the sender’s bank, and the bank allows online transfer initiation, certain information is still required, just as in in-branch transfer requests.

The sender must know either the receiver’s account Bank Identification Code (BIC), different from a routing code, or for international wire transfers, the International Bank Account Number (IBAN), also different from a branch account number. The sender must know the full name of the receiving person. The sender must have sufficient funds for not only the transfer amount but also transaction fees.

If the online wire transfer crosses international boundaries, and the receiving currency is different, either the sender or the receiver-or both-may be charged currency exchange fees.

Other Organisations

Retail organisations who specialise in wire transfers require a valid credit card that will be debited from online websites. Directly signing onto a wire transfer organisation’s website allows instant funds verification and transaction initiation.

The sender must present the same basic information as a bank-to-bank transfer, though the information is in a different form.

If not sent directly to a bank account, instead of a BIC or an IBAN, the sender must know the receiving location or store number. The sender must still provide the full recipient name and pay all sender fees.

Retail wire transfers offer timing advantages: They don’t depend on limited bank hours but on the receiving office’s hours of operation, which often extend well beyond banks’ hours. They also effect location-to-location transfers that pinpoint a receiving location most convenient to the receiver and don’t require bank access.

The receiver merely presents valid identification, signs for the funds, and receives cash that can be used immediately or deposited into a bank account.

Online wire transfers differ from traditional wire transfers primarily in only the initiating method. Instead of waiting in line at a bank or a transfer office, the transaction starts from any Internet-connected computer.

Costs

Whether online or off-line methods are used, wire transfer fees are usually identical but don’t include any possible online connect costs that may be incurred.

Online Security

Bank-to-bank online wire transfers still require bank account associations but offer additional levels of notification and security.

Each party-the sender and receiver-can be notified instantly of the wire transfer status via a cell phone or an email address.

The sender, payment and receiver information sets are encoded under multiple layers of encryption and tracking systems, ensuring not only transaction security but also information privacy. Some online wire transfer entities offer transfer insurance that reimburses the transferred funds if they get diverted by unauthorised entities—if the transaction is hacked and stolen.

For more information regarding the basic wire transfer process, see Wire Transfers.