Bank transfer remains one of the fastest ways to send money. It features a secured network and reliable service that makes it rank above other common money transfer methods. Bank transfer between the same banks takes around 24 hours. But what about bank transfers between different banks? How long does that take?
Bank transfer between different banks takes around 3 days, unlike bank transfer between the same banks which takes 24 hours. This is because money is being transferred from two different banks, thus, it has to pass through different hands and processes.
Before sending a bank transfer, you’ll certainly want to know when the recipient will receive the money sent. If you are the recipient, you’ll also want to know when the funds will get into your account. It is important you are aware of this info so you know the right steps to take when funds sent via a bank transfer don’t arrive at the standard time.
How Long Does a Wire Transfer Take?
How Long Does a Bank Transfer Take Between Different Banks?
Bank transfer, aka wire transfer, is a payment method that allows consumers to send money to a bank account worldwide. The consumer is given a unique reference number and details of the bank account they can initiate their payment. The consumer will then finish the transaction in any way they wish to pay. This payment can be made via telephone, mail, or online baking application.
Bank transfers boast many benefits for shoppers who don’t own a credit card or don’t want to use it to make a distance sale payment via internet, telephone, or mail. Bank transfer is also a very safe and secure payment method, as both account holders must have a verified identity, and there are zero chances of a chargeback.
Many individuals use bank transfers to send money to loved ones, buy products, and transfer money outside the country. Whether you are sending money to a family member for a special occasion, buying a home you have been saving for, or just paying back a friend for lunch, bank-to-bank transfers will help you send money safely and fast.
How long a bank transfer takes depends on many factors, including where you are sending money to and the type of financial organization you use. Bank transfers can be initiated via wire transfer or ACH. Below, I’ll throw more light on both types of electronic transfer methods.
What Is an ACH Transfer?
ACH transfers derive their name from the Automated Clearing House network, including about 10,000 financial institutions. The ACH network can process transactions like direct debits, direct deposits, direct payments, electronic (eChecks), and electronic funds transfers (EFTs).
Both consumers and businesses use ACH transfers for transactions that fall into two types: direct payments (ACH debit transactions) or direct deposits (ACH credit transactions). Some banks or financial institutions also offer bill payment, which allows you to schedule and settle your bills electronically using ACH transfers. Or you can use the ACH network to make transfers to people or merchants abroad.
If you are a business owner, you can also use ACH transfers to pay your vendors or employees. Often, ACH transfers clear the bank in just a few business days if there are enough funds in the account. Transactions can take longer, though, under some circumstances, especially in the case of suspicious transactions.
The Costs Of ACH Transfer:
ACH debit transfers, including direct payroll deposits and most bill payments, are typically free. If you need expedited bill payments, there can be fees. For ACH credit transfers, banks might charge a fee of around $3 for sending money between accounts you have at different banks but may provide these supposed external funds transfers for free. There is often no fee to get them. Person-to-person payments that you make via your bank or third-party applications, like PayPal, can cost a small fee, depending on the platform and payment method.
How Long Does It ACH Transfer Take?
Delivery of ACH transfers can take many business days, meaning day’s banks function, which doesn’t include weekends or holidays. ACH transfers are processed by a network operator in batches only seven times daily, unlike the real-time processing of wire transfers.
Financial institutions can decide to have ACH credits processed and delivered within the same day or two business days. On the other hand, ACH debit transactions must be processed by the following business day.
These timelines are based on rules from the National Automated Clearing House Association, or NACHA, the trade group that supervises the network. Upon receiving the money, a bank or credit union might also hold these transferred funds for a period, so the overall delivery time varies. NACHA rules ensure that banks can process payments the same day they are transferred, but it’s left for the bank to decide to charge you for accelerating a payment.
What is a Wire Transfer?
A wire transfer is an electronic payment service used to move money between accounts. This method can be used to send money for a same-day arrival, but the expedited services come at a huge cost. There are two types of wire transfers: domestic and international. International transfers are synonymous with remittance transfers, international wires, or international money transfers and must be for more than $15 when sent from the U.S. to another country.
It’s unusual for customers to use wire transfers to initiate huge one-time payments requiring same-day processing for real estate transactions. But note that same-day limits on fund transfers may apply.
Key Differences Between ACH and Wire Transfers:
Before you make an ACH or wire transfer, it is important to understand the differences. Consider these factors when torn between which option is best.
- Availability: ACH transfers only work for domestic transactions. If you want to transfer money abroad via the ACH network, you must do so with an international wire transfer.
- Security: Both types of transfers offer security measures you aren’t afforded when you send a paper check. Financial institutions that handle wire and ACH transfers offer an extra layer of protection because banking information is coded during the transfer.
Both types of transfers require steps to confirm identity or banking information before the transaction can be completed, but mistakes and fraud do occur. While ACH transfers can be halted, wire transfers work fast and cannot be reversed once the recipient receives the money. Terminating a wire transfer is often a race against time.
- Transfer limits: Daily transfer limits apply for ACH and wire transfers. Contact your bank or credit union to confirm.
- Processing times: ACH transfers can take one or more business days to process, but most wire transfers are processed the same business day.
- Posting times: Wire transfers allow recipients to access funds when they hit an account. ACH transfers are a little different. The funds will appear in “pending” status and won’t be given to you for use until they clear the ACH system. This could take up to three business days.
- Reversals: The good news is you may be able to request a transaction reversal for ACH transfers if there is a mistake. Wire transfers don’t provide this option and are permanent once the transfer is made.
- Fees: Expect to pay a fee from $10 to $35 for each wire transfer you initiate. Recipients are sometimes subject to a nominal fee for incoming wire transfers. Most ACH transfers are free, but a fee may apply for expedited bill pay services or transfers to outside banks.
How Do Bank Transfers Work?
Bank transfers are a way to electronically transfer money from one financial institution to another, like ACH transfers and wire transfers.
Bank transfers work by using interbank networks. Many bank transfers use the society for worldwide interbank financial telecommunication networks (SWIFT). The SWIFT network works for domestic and international transfers because it connects more than 10,000 banks and other financial institutions worldwide.
To initiate a transfer using SWIFT, you will need:
- Your recipient’s bank information, including name and branch address
- Your recipient’s full name and branch address
- Your recipient’s account number or IBAN (International Bank Account Number). These numbers can be found by either asking the bank or on bank statements.
- The recipient’s bank’s SWIFT code.
This information is then sent through intermediary banks, who ensure your funds get to the appropriate place ASAP. These intermediary banks act as mediators who help process funds before they arrive at your recipient’s bank.
Banks use intermediaries because there are a lot of accounts for one bank to manage all the transfers and funds. Because of this, funds are strategically released to create a network of banks worldwide.
How Long Does a Bank-To-Bank Transfer Take?
Generally, bank-to-bank transfer will take about three business days, depending on where the money is headed and the network being used. Let’s determine how long both domestic and international bank transfers take.
Timeframe: Bank Transfer Between Two Different Banks
Domestic bank-to-bank transfers within the U.S. are usually available the following business day. Transfers within the same bank will be faster and maybe processed immediately. This is because the money stays within the same financial institution.
Bank transfers between two different banks will take longer, up to three business days, in some cases, because they have to pass through intermediary banks that help enable the transfer. If you initiate a bank transfer, be it inter-bank or intra-bank, and it doesn’t arrive at the normal time, it may be because of these factors:
- Bank holidays
- Time differences
- Missing paperwork
- Different currencies
- Wrong payment details
- Fraud prevention procedure
Ensure you contact your bank to determine the reason for the delay and the next step to take.
How Long Do International Bank Transfers Take?
International transfers take between one and five business days. As said, international bank transfers often use SWIFT, which is an interconnected network of banks that help facilitate the transfer. Depending on the financial organization, your funds could go through up to three intermediary banks worldwide, increasing the processing time.
Can a Wire Transfer Be Reversed?
Does a Bank Transfer Take Longer Than Other Types of Money Transfers?
Bank transfers are a common way to send money, but there are other alternatives that may benefit you. To compare, let’s look at some different types of transfer:
- Wire transfers: Wire transfers are generally the fastest way to transfer money outside the United States. Wire transfers happen instantaneously, making them a faster option than bank transfers, but they are also costly.
- ACH transfers: ACH transfers are ideal for sending money domestically, but they often take longer than wire transfers as banks process transactions in batches and only do so a few times daily. This means you may have to wait for the next batch of transfers before yours is processed. This, coupled with the intermediary steps between banks, can delay the transfer.
- Peer-to-peer applications: Peer-to-peer applications have seen increased popularity due to applications like PayPal, Venmo, and Zelle, which make it easy to send funds to friends and family. These apps are a form of ACH transfers.
Is It Faster to Send Money Between Two Different Banks vs. The Same Bank?
Banks make it easier and more affordable to transfer money within the same bank system rather than send money to another bank. The same applies when sending money between your bank accounts. Bank-to-bank transfers are quick because the funds don’t pass through an intermediary, like an automated clearinghouse. This means that your money is touched by fewer people, thus cutting down the bank transfer time.
