GLOSSARY
Wire transfer
An electronic, bank-initiated funds transfer between accounts, settled through a domestic clearing system or, for cross-border payments, the SWIFT correspondent network.
A wire transfer is an electronic, bank-initiated transfer of funds from one account to another. Domestic wires settle through a national high-value system (Fedwire, CHAPS, TARGET2). Cross-border wires move through the SWIFT correspondent banking network, frequently using the MT103 message type or the modern ISO 20022 equivalent.
Why it matters
Wire transfers are the workhorse of B2B trade payments: irrevocable once cleared, same-day domestic, and one-to-three days cross-border via SWIFT. They are also the most expensive option for most senders — typical cross-border fees are $25–$50 in lifting fees plus FX margins, with deductions taken by intermediary banks along the chain.
Pricing transparency improved significantly with SWIFT GPI, which exposes the full fee chain and tracks payment status end-to-end. For high-volume corridors, alternatives such as multi-currency virtual accounts, ACH/SEPA equivalents, or stablecoin rails increasingly compete with traditional wires on cost and speed.