Wire Transfers Explained: Costs, Timelines and Alternatives

A wire transfer is a secure way to move money electronically within Canada or across borders. Wire transfers may not always be the best way to send money because they come with high fees and other restrictions.

How wire transfers work

A wire transfer enables individuals to send money electronically via banks and other financial institutions, rather than mailing a cheque, money order or other form of payment. Historically, telegraph wires were used to send these money transfers, which is where the name originated.

The two main types of wire transfers are domestic and international.

While domestic transfers may take as little as one day to arrive, international transfers can take up to five days and can also come with high fees.

Here's what you’ll need to send a wire transfer

Depending on the type of bank account you have, you may be able to send a wire transfer via your online banking portal or by visiting a branch in person. You can also use a service, such as Western Union, to wire money.

To send a wire transfer through a bank, you will need to provide specific financial information about your recipient, including:

Wire transfers can take anywhere from one day for domestic wire transfers up to five days for international transfers. Once you’ve sent a transfer and your money has left your account, you can’t cancel it.

Wire transfer fees

Sending and receiving money via wire transfer can be an expensive activity. Here are some examples of wire transfer fees charged by popular banks:

When a wire transfer is (and isn't) a good idea

Wire transfers can be a convenient way to send funds internationally, especially if you want to send a large amount of money.

However, many banks and financial institutions also offer a service called “global money transfer,” which they distinguish from their international wire transfer service. These transfers may be more convenient as you can send them from online banking or your bank’s app, rather than visiting a branch. They often come with low or no fees. Though the amount of money you can send per day, week or month may be lower than with a traditional wire transfer.

To send money within Canada, it’s generally easier and more affordable to use Interac e-transfer, as long as your transfer amount doesn’t exceed your bank’s daily limits.

Want something cheaper, faster or easier? Here are some wire transfer alternatives

EFT vs. wire transfer

An electronic funds transfer (EFT) is a broad term that covers multiple forms of transferring money electronically. You might use it when you want to transfer money online between your own bank accounts at different financial institutions, and when you pay bills online from your bank account.

Wire transfers can be used to send money to other people or businesses domestically or internationally.

Interac e-transfer vs. wire transfer

Interac e-transfers can be used to send money electronically to anyone in Canada. They are more common than wire transfers when sending money domestically because of their affordability and convenience (you only need a person’s email address or mobile number). Depending on the type of bank account you have, it may be free to send Interac e-transfers.

However, a domestic wire transfer could be more convenient if you want to send a large sum of money quickly because Interac e-transfers have daily, weekly and monthly transfer limits.

Direct deposit vs. wire transfer

Direct deposit is a form of EFT used to transfer money electronically between companies and individuals. For example, direct deposit is used by companies to automatically deposit an employee’s paycheque into their bank account. You can also set up direct deposit with the Canada Revenue Agency (CRA) to have your tax refund deposited into your bank account automatically. In contrast, a wire transfer is used to send money between individuals.