Send money home
Your first transfer is free and arrives in seconds
If someone at your bank tells you "you can make a bank transfer" and another tells you "you need a wire transfer," it might seem like they are talking about the same thing. They aren't. Confusing the two can cost you between $25 and $50 in unnecessary fees, especially when you just want to send money to your family.
A wire transfer is a type of international bank transfer that uses the SWIFT network, with costs ranging from $25 to $50 and processing times of 1 to 3 business days. "Bank transfer" is a broader term that also includes domestic transfers like ACH in the U.S. or SPEI in Mexico, which are free or low-cost.
What is a wire transfer?
A wire transfer is a direct electronic transfer between two banks, generally through the SWIFT or Fedwire network in the U.S. It is mainly used to send money between countries or to move large sums securely.
When you send a wire transfer, your bank charges a fee to process the payment instruction through the international interbank network. The receiving bank may also charge a fee to receive the funds.
What you need to make a wire transfer:
- SWIFT code of the receiving bank
- Beneficiary's account number or IBAN
- Beneficiary's full name and address
- Name and address of the receiving bank
Wire transfers cost between $25 and $50 on the sender's side, plus additional charges that the receiving bank in the destination country may apply. Once processed, they are irreversible.
Once the bank processes the instruction, the money leaves your account and there is no way to recover it if you made a mistake. That is why banks ask for so much information before executing one.
What is a bank transfer and why does it cause confusion in the U.S.?
The term "bank transfer" describes any electronic movement of funds between bank accounts. It is a category, not a specific method. Several different systems fall under that category:
ACH (Automated Clearing House): the U.S. domestic transfer system. Free or low-cost, it processes in 1 to 3 business days. Zelle uses the accelerated ACH network, which allows for nearly instant transfers between accounts at the same bank or participating banks.
SPEI: Mexico's instant interbank payment system. It works in real-time, bank-to-bank, with minimal or no cost depending on the bank. When your family member receives money directly into their bank account in Mexico, they receive it via SPEI. Every country in Latin America has its own equivalent system.
Wire transfer: the international method within this category. Yes, a wire transfer is also a type of bank transfer, specifically designed for international operations through networks like SWIFT.
The most common point of confusion occurs when U.S. banks use the term "bank transfer" in their Spanish-language materials to refer specifically to a wire transfer. It is not incorrect, but it is incomplete, because it gives the impression that there are no other options. In practice, this means that if you go to a bank teller asking for a "bank transfer" to send money to your family, the teller may assume you want to make a wire transfer and quote you a $25 or $45 fee, when in reality there are cheaper and faster methods available for the same destination. Knowing that "bank transfer" is a category, not a specific product, empowers you to ask the right question and compare options before paying.
If you want to know all the types of transfers available, this article covers them one by one.
What are the key differences between a wire transfer and an international bank transfer?
| Aspect | Wire transfer | International bank transfer (ACH / SPEI) |
|---|---|---|
| Scope | International | Mainly domestic |
| Cost | $25 to $50 + potential receiving bank fees | Free or low cost |
| Speed | 1 to 3 business days | Minutes to 1 business day |
| Network | SWIFT / Fedwire | ACH (U.S.) / local payment system at destination |
| Reversible | No, once processed | Depends on the system |
| Required information | SWIFT code + account number + bank details | Account number or local identifier (CLABE, IBAN, etc.) |
The difference that matters most to someone sending money to their family is cost and speed. A wire transfer makes sense for large business transactions or situations where no other option exists. For Money transfers to family members, the costs of a wire transfer are not justified. If you want to understand all the methods available for sending remittances from the U.S., the complete guide to money transfers covers every option in detail.
When is Félix a better choice than a wire transfer?
If you want to send money to your family in Latin America, a wire transfer is not the right tool. Wire transfers are designed for formal bank transactions, not for family remittances.
Félix delivers the money directly to your family member's bank account using the local payment network in the destination country, without you needing to enter a SWIFT code or pay a bank Fee. The cost starts at $2.99, and the money arrives in minutes in most cases. Your family member doesn't need to do anything: the deposit arrives directly into their account using their CLABE or account number. You can see the full process in the article How to send money with Félix Pago?
The difference compared to a wire transfer is concrete: instead of paying $25 to $50 and waiting up to 3 days, you pay from $2.99 and the money arrives in minutes in most cases.
Note: if you are evaluating different methods for tax reasons as well, there is an important change to consider. As of 2026, the U.S. government approved a 1% tax on cash remittances that affects certain payment methods, but not payments made with a U.S. card or bank account.
Related content
