Breadcrumb

How Long Does an Instant Wire Transfer Take?

Written by

The GoCardless content team comprises a group of subject-matter experts in multiple fields from across GoCardless. The authors and reviewers work in the sales, marketing, legal, and finance departments. All have in-depth knowledge and experience in various aspects of payment scheme technology and the operating rules applicable to each. The team holds expertise in the well-established payment schemes such as UK Direct Debit, the European SEPA scheme, and the US ACH scheme, as well as in schemes operating in Scandinavia, Australia, and New Zealand. See full bio

Last editedJan 20232 min read

Wire transfers offer a popular way to send money to recipients both within the United States and overseas. They’re often used for large, important business transactions such as purchasing real estate or closing a business deal. When speed is important to the success of your transaction, you may be wondering how long an instant wire transfer takes. Here’s a closer look at processing times and factors that can impact your instant bank wire transfer.

What is a wire transfer?

A wire transfer is an electronic funds transfer using bank-to-bank connections. It can be processed by moving money from one bank account to another, as with an ACH payment. However, while ACH payments only use the domestic Automated Clearing House network, wire transfers can be processed internationally using networks like SWIFT and IBAN. They offer a fast, secure way to send and receive money.

How does a wire transfer work?

Wire transfers involve the movement of data from one financial institution to another. This is what facilitates the funds transfer between accounts. The data is processed using the most relevant communication network, typically the Society for Worldwide Interbank Financial Telecommunication or SWIFT.

To send a wire transfer, the recipient provides key details to their bank. This includes:

Recipient’s full name and address
Recipient’s bank name, address, and telephone number
Recipient’s bank account number and account type
Amount of money to be transferred
Bank ABA, IBAN, and BIC/SWIFT codes depending on nature of transfer

The issuing bank then sends all this information on to the receiving bank for the process to be completed. For domestic transfers, the whole process can be nearly instantaneous.

Is a wire transfer instant?

Sometimes. Wire transfers are required by the Expedited Funds Availability Act to be available to recipients within one business day. A domestic wire transfer sent within the US is therefore usually processed within a few hours, but at times the process can be instantaneous. Timings will depend on several factors.

Time of day: Each bank and credit union sets its own cut-off time for wire transfers, which can be as early as 3 p.m. Transfers sent after this time might not be received until the next business day.
Day of the week: Transfers can take longer on weekends and holidays.
Destination bank: Transfers sent between accounts at the same bank will usually be instant.
Banking network: The FedWire system enables an instant wire transfer using real-time gross settlement.

For international wire transfers, the processing times are longer. Transfers can take anywhere from one to five business days, influenced by differences in banking systems and currencies. Like domestic transfers, timings can be influenced by the banking network used, time of day, and date of the week. International transfers sometimes need to be routed through correspondent or intermediary banks, which can add to the processing time.

Alternatives to wire transfers

If you need to make an instant bank wire transfer and it’s already past your bank’s cut-off time for daily processing, it’s worth looking at all your options. Wire transfers sent through the FedWire system are faster than those sent through other networks, so ask your bank if that’s an option. Banks can also offer alternatives like money orders, bank drafts, and cash deposits into the recipient’s account.

Peer-to-peer apps like Venmo and Zelle offer real-time money transfers between bank accounts. These can be a good alternative to an instant wire transfer if you’re sending smaller amounts of money, but they’re not suitable for larger settlements.

Open banking is also transforming the landscape of instant bank-to-bank payments. One example is Instant Bank Pay from GoCardless, which uses the power of open banking to enable real-time bank-to-bank transfers. Fast and secure with instant confirmation, it’s also more convenient than sending and receiving traditional wire transfers through the bank.

We can help

GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.