What is a wire transfer?

A wire transfer is an electronic funds transfer between banks that provides same-day or next-day availability, typically used for large or time-sensitive payments. For professional service firms, wire transfers enable the rapid receipt of client payments and urgent vendor payments.

Key characteristics

• Electronic bank-to-bank transfer

• Same-day availability

• Higher cost than ACH

• Irrevocable once sent

• Used for large amounts

• Requires bank routing details

Why it matters for professional service firms

Wire transfers provide speed and certainty for critical payments. The higher cost is justified for large, urgent, or international transactions. Professional service firms should use wires selectively for time-sensitive situations while using lower-cost ACH for routine transfers.

Real-world example

Amanda needed to collect $85,000 from the client for the project milestone before releasing deliverables. Wire transfer: client-initiated wire with firm's bank routing and account number, funds available same day, confirmed before deliverables released. The wire fee of $25 was trivial relative to the transaction size and the certainty provided.