Finance Index
What is a wire transfer and how is it different from ACH?
A wire transfer is a real-time, bank-to-bank payment settled individually and with finality - typically through Fedwire domestically or SWIFT-instructed correspondent banking internationally. Unlike ACH (batched, low-cost, 1 - 2 days, limited reversal rights), wires settle within hours, cost $20 - $50+ per transfer, and are effectively irrevocable once credited.
Can a wire be recalled or amended after it's sent?
Not reliably. Once the beneficiary bank credits the funds, recovery requires the beneficiary's consent or legal action. Your bank can send a recall request (and should, immediately, in error or fraud cases), but it is a request. Amendments to in-flight wires are possible only before settlement. This finality is exactly why wires demand the strongest pre-release controls in AP.
What controls should be required before anyone releases a wire?
Dual authorization at the bank level (one user creates, a different user releases), callback verification on any new or changed beneficiary details using a known-good phone number, amount thresholds requiring senior approval, and a standing rule that emailed payment instructions are never acted on without independent verification.
How do I send a domestic wire to a vendor - what information do I need?
Beneficiary legal name, account number, receiving bank name and ABA routing number, amount, and a reference; for high-value wires, verify those details by callback before release.
What is fedwire vs chips vs swift?
Fedwire is the Federal Reserve's real-time gross settlement system; CHIPS is a private large-value netting system among major banks; SWIFT is a messaging network that instructs payments but doesn't move money itself.
What do wires cost, and why do vendors sometimes receive less than invoiced?
Sending typically costs $20 - $35 domestic and $35 - $50+ international; receiving banks often charge $10 - $15, and international intermediary banks may deduct fees in transit - which is why vendors sometimes apply less than the invoice amount.
We sent a wire with one wrong digit in the account number - what happens?
If the account number doesn't exist, the wire usually bounces back. If it matches a real account, banks generally rely on the account number over the name - contact your bank immediately to request a recall, but recovery depends on the receiving account holder. Speed is everything.
What is a wire cutoff time and what happens if I miss it?
The bank's daily deadline for same-day processing (commonly mid-to-late afternoon ET); miss it and the wire goes out the next business day.
Should wires require dual release / dual authorization at the bank level?
Yes - bank-enforced dual control is one of the few controls that still works when your internal systems or a user's credentials are compromised.
What is an intermediary bank and why did one take a fee from my vendor's wire?
International wires often route through correspondent banks that connect the sending and receiving institutions; each may deduct a handling fee unless the fee instruction (OUR) makes the sender bear all charges.
The vendor says our wire arrived short - who ate the fees?
Almost certainly intermediary or beneficiary bank fees under SHA/BEN fee instructions. Prevent disputes by agreeing fee treatment up front and using OUR instructions (or local-rail payments) when the vendor must receive the exact invoice amount.
When are wires worth the cost vs same-day ACH or RTP?
When you need finality, amounts above same-day ACH's $1M cap, international reach, or contractual proof of irrevocable settlement. For routine urgency under the caps, same-day ACH or RTP is cheaper.
Should we ever wire money based on payment instructions received by email?
No - not without independent verification. Email is the primary vector for business email compromise; mandatory callback to a known number, verification against payment history, and dual approval must precede any wire to new or changed instructions.
Stampli perspective
Stampli applies the same segregation of duties between invoice approval and payment approval to every payment method, supports multi-level and amount-based payment approval rules, and runs pre-payment validation before funds move - so high-finality payments get deliberately heavier review without slowing routine ACH runs.