Definition
A fast electronic transfer of money between banks, often used for large or urgent payments such as a home closing.
What it means
A wire transfer sends money from one bank to another, usually the same business day for domestic wires. The Federal Reserve's Fedwire service is one of the main systems banks use. Banks commonly charge a fee to send a wire and sometimes to receive one. Wires are hard to reverse once sent, which is why scammers often ask for them. Before sending a large wire, such as a down payment, call the recipient at a phone number you already know to confirm the account details, because criminals send fake closing instructions by email. International wires sent by consumers are generally covered by the CFPB's remittance transfer rule, which requires a disclosure of fees and the exchange rate and gives you 30 minutes to cancel in most cases.
Example
If your bank charges $30 to send a domestic wire, sending a $25,000 down payment costs $30. An ACH transfer may be free but take one to two business days.
Illustrative numbers only. Your situation will differ.