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Wire Transfers are a method of transferring money electronically, from one person or institution to another.
A money transfer can be made from one bank account to another bank account, through a transfer of cash at a local money transfer office or an online currency exchange service provider.
Different systems and operators provide a variety of options relative to the immediacy and finality of settlement and the cost, value, and volume of the transactions.
Wire transfers are a way for people and businesses to exchange money when they are located apart from one another.
In the United States wire transfers date back to the invention of the telegraph, this is when Western Union first got onto the scene.
The method of exchanging currency between people dates all the way back to the "giro."
The giro was a centralized banking system in which funds could be withdrawn or deposited through the post office. The giro system dates back at least to Ptolemaic Egypt in the 4th century BC.
Bank money transfers are often the most expedient method for transferring funds between bank accounts.
The following link is to a website that offers all the International SWIFT or BIC codes
The SWIFT codes
This is so you will have enough money for the purchase or transfer.
Some services will provide this information for you before you initiate the transfer, although not all do.
It is up to the individual or entity to know this before they move forward with the money transfer.
A few extra Notes:
Banks and wire-transfer services collect payment for the service from the sender as well as from the recipient. The bank from which the person or entity sends the funds will collect a fee separate from the funds being transferred or it will be include into the cost of the transfer. Furthermore, the service or bank may or may not charge the receiver for the funds they will collect, you will want to know this before you send the money.
Although Wire services will cost you money to send the funds whether it be a percentage of the cost or a flat fee.
It costs the dealer virtually nothing to receive the funds compared to credit card purchases. However, dealers often charge less for their bullion if the buyer/investor is using a wire service.
Why is this? Credit Card services cost money to the dealer. Having once owned a business and collected money from customers using credit cards, I have some experience in this area.
Credit Card services charge dealers and business owners to use their services. There are fees for every transaction, usually running anywhere from 3.0% to 6.5% of the total cost of the purchase.
In addition, not all Credit Card services process the transactions themselves (ex: Visa and MasterCard), so there are additional fees to an outside processing company.
Some of these fees are billed at the time the transaction is processed or at the end of each month. Either way, if the dealer or business does not compensate for these fees in one matter or another it will slowly eat away at the businesses bottom line and could ultimately effect the business in a bad way.
Note: Be aware of the fact that if you choose to send money by a wire transfer you can't get it back.
Bullion dealers are generally different in this respect because almost all of them offer refunds if you are not pleased with an order.
However, in the case of sending money to a person or someone you may not know, once you send the money there is virtually no way of getting it back. So know who you are sending the money to.
Click "here" to read an article from the US Federal Trade Commission concerning wire fraud.
Most bullion dealers have a minimum on the amount that must be purchased before you can pay for items via a wire transfer. Most of the minimums that I have seen have been over $1000.00.
When using a money transfer service to wire money to make a purchase of bullion, you will be sending the money to the bullion dealers bank not to them directly.
You must give the bank or money transfer service instructions as to where or whom the money is to be sent. This is why it is very important to get all the recipients correct information before initiating the transfer.
The following is what generally happens after you purchase bullion from a bullion dealer and wish to pay with a wire transfer.
Is a list of reputable companies who offer online wire services.
Please read all information carefully and make sure that you are aware of a currency's conversion rate if you are sending the money internationally.
It is up to you if you wish to use one of these services. If you feel more comfortable using your own local banks to send money via a wire transfer, I would encourage you to do so.
This page has been included on this site so that you have a better understanding of the reasons why dealers use wire services and to make you more knowledgeable of the process.
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