Incoming wire transfer is a term that is used to describe funds that are being electronically transferred into a bank account from another bank account. It is used specifically to describe the transfer from the perspective of the owner or institution receiving the funds. An outgoing wire transfer, on the other hand, refers to the same transaction from the perspective of the person or business sending the funds. It is very common for wire transfers to be used to send money across long distances, such as from Europe to Asia. Though incoming wire transfers can be a good way to receive money from a far-away place in a hurry, they are often subject to fees that can be a substantial percentage of the money being transferred.
In many cases, there are fees associated with this kind of electronic financial transaction. Depending on the policies of the banks or credit unions involved in a wire transfer, there may be fees assessed on both ends of the transfer. A person sending money from a Hong Kong bank account to a New York bank account might have to pay a fee to send the wire transfer. Also, the person receiving the incoming wire transfer may have to pay a fee for receiving the transfer.
Because of the fees involved, it is usually not financially sensible to send frequent, multiple wire transfers to the same account or to use a wire transfer service for small amounts. If a person receiving an incoming wire transfer of $50 US Dollars (USD) is assessed $10 USD as a fee, then 20 percent of the funds would go directly to the fee. If the wire transfer was for $1,000 USD, however, the fee would only consume 1 percent of the transferred funds, which is much more reasonable. There are some credit unions that offer more reasonable rates for wire transfers of small amounts of money such as amounts that are $100 USD or even a bit less.
Receiving an incoming wire transfer is often a way to receive funds quickly. In many cases, a wire transfer is much faster than mailing a check or delivering funds in person. Before setting up a wire transfer, however, it is important to understand the rules, regulations, and fees that will be assessed by the banks or credit unions involved with the transfer of funds. In some cases, wire transfers that take place across borders take longer than domestic wire transfers.