Where’s the Cheapest Domestic Wire Transfer?
January 10, 2022
Wiring money is part of everyday business operations for many growing domestic companies. Unfortunately, it can also be a costly endeavor. With fees that range from $5-$50 per transaction, many businesses find themselves allocating significant sums in their budget to pay wire transfer fees. How much, exactly, depends on where you bank.
Whether you’re shopping around for a new bank account or are just getting the lay of the land for domestic wires, you’ve got your work cut out for you. While almost every bank offers wires, rates, terms and incentives vary for each. Here’s what you need to know to find the cheapest domestic wire transfer.
Every Bank Has Different Fees
Banks charge a premium on wire transfers because they are, in effect, a premium service. Whereas ACH bank transfers process in batches each day or every few days, wire transfers are prioritized. And, many times, they’re for sums greater than what’s allowed by ACH limits. Special treatment demands an additional fee.
Because domestic wire transfers don’t tend to incur any additional costs for banks, they present a markup opportunity. As a result, most banks charge a premium for incoming or outgoing domestic wire transfers (often both). This fee comes at the bank’s discretion, but tends to hover between $20-$35 on average.
Incoming vs. Outgoing Domestic Wire Fees
Because of their priority processing, banks often charge at both ends of the transaction. The sender can expect to pay a wire transfer fee and the recipient might also be due for one. Some senders elect to pay both, to ensure recipients aren’t left footing the bill.
Generally, it costs less to receive a domestic wire transfer than it does to send one. On average, the cost to receive a wire is about half the cost associated with sending one. For example, At Bank of America, domestic wires incur a fee of $30 for the sender, while recipients pay just $15 on landed funds.
Again, costs are up to the institution. For example, Capital One charges $30 to send a domestic wire, but there are no fees on incoming funds received through a wire transfer. Moreover, Chase has a $15 fee on incoming wires, which drops to zero if the wire is inbound from another Chase account. It all depends on where you bank.
The Top 3 Cheapest Domestic Wire Transfers
Looking for the outright cheapest domestic wire transfers? You’ll usually find them at bigger banks. Some of the most affordable domestic wires include:
- USAA ($20 per wire)
- Citibank ($25 per wire)
- Chase ($25 per wire)
Keep in mind that these are the best values for those sending wires. If you’re sending and receiving a fair number of wire transfers, institutions like Capital One, Fidelity and Navy Federal Credit Union all offer lower cumulative costs on sending and receipt.
Wires Aren’t the Only Way to Send Money
For many growing businesses, there’s no way around wire transfers. Those sending large sums or who need to get money into the hands of recipients same-day or next-day rely on the quickness, convenience and security of domestic bank wires. However, the rise of digital payments is making it easier to get these same benefits without the inflated fees.
Digital payments are quick, transparent and easy to self-manage. Transfers between digital wallets take no more than a couple of days, with funds tracking so users know exactly when funds will land. Users manage their own wallets, which means being able to make payments or transfers without incurring other institutional fees. It’s the smarter, simpler way to get money into the hands of recipients quickly.
Veem Makes Sending Money Simple
It’s hard to beat the quickness of a domestic wire transfer. Unfortunately, these payments are some of the most expensive a business will make. Successive wire transfers add up fast, and it’s easy to find yourself paying hundreds (if not thousands) of dollars a month in avoidable fees.
If you’re ready to explore digital payments as a low-cost alternative to even the cheapest domestic wire transfer, Veem is ready to introduce you to the benefits. Schedule a demo of Veem today and see how easy it is to send money to contractors, partners, vendors and anyone else who needs funds fast.