Wire Transfer - Definition
Written by Jason Gordon
Updated at December 4th, 2020
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What is a Wire Transfer?
A wire transfer is a financial transaction that allows individuals transfer funds from one account into another account through electronic communication.
Back To: COMMERCIAL LAW: CONTRACTS, PAYMENTS, SECURITY INTERESTS, & BANKRUPTCY
A Little More on What is a Wire Transfer
For a bank wire transfer, the sender deposits the cash into his bank account, then fills the receiver information that will enable his bank conduct wire transfer. Physical transfer of money is not required in wire transfers, in stead, two banks (one for the sender and the other for the receiver) settle payment electronically using the bank end.
Domestic wire transfer and international wire transfer are the two types of wire transfer. While the former use domestic Automated Clearing Houses (ACH), the latter use foreign processing systems.
Academic Research on Wire Transfer
- The Inverted Pyramid of Wire Transfer Law, Bhala, R. (1993). Ky. LJ, 82, 347.
- Paying for the DealAn Analysis of Wire Transfer Law and International Financial Market Interest Groups, Bhala, R. (2011).
- Treasury Regulation of International Wire Transfer and Money Laundering: A case for a permanent moratorium, Wyrsch, G. (1991). Denv. J. Int'l L. & Pol'y, 20, 515.
- Article 4A of the Uniform Commerical Code: Finally, Banks and Their Customers Know Where They Stand and Who Pays When a Wire Transfer Goes Awry, McKelvy, T. E. (1990). Mem. St. UL Rev., 21, 351.
- The Evolving Law of Payment by Wire Transfer-An Outsider's View of Draft UCC Article 4A, Geva, B. (1988). Can. Bus. LJ, 14, 186.
- What you should know about wire-transfer liabilities, Brandon, G. (1990). Financial Executive, 6(6), 39-44.
- Is your wire transfer system secure?, Champlain, J. J. (1995). Internal Auditor, 52(3), 56-60.
- Keep the Lid on Wire Transfer Fraud, Cocheo, S. (1991). ABA Banking Journal, 83(1), 39.
- The Concept of Payment: Wire Transfer Orders, the Common Law and Article 4A, Kyles, D. (2002). Dalhousie J. Legal Stud., 11, 217.Check, Money Order, Credit Card or Wire Transfer, Klassen, W.
- Ready for the new wire transfer rules?, Byrne, J. J. (1995). American Bankers Association. ABA Banking Journal, 87(11), 26.
- Reducing risk in wire transfer systems, Stevens, E. J. (1986). Economic Review, (Q II), 17-22.