Bank transfer vs wire vs online transfer: The complete guide

Whether you're sending rent to a landlord, paying a contractor, or splitting a vacation cost with friends, there are 3 main ways to do it: bank transfer, wire transfer, or using an online transfer platform.

In this guide, we break down how they compare — and how to pick the right one.

The 3 main ways to send money online

Moving money across the US or around the world involves different electronic networks. While the end result is the same — sending money from your account to another — the technology, speed, and cost vary significantly between a bank transfer, wire, and online transfer.

What is a bank transfer (ACH)?

In the US, the term bank transfer almost always refers to an Automated Clearing House (ACH) transfer. This is a domestic network used by financial institutions to move money between accounts. It's the system that powers your direct deposit at work and the monthly bills you pay through your utility company's website.

ACH transfers are processed in batches. Instead of sending each payment individually, banks gather all their requests and send them to a central clearing house at set times during the day. This batching makes the process very efficient and inexpensive for banks, which is why personal checking accounts often offer ACH transfers at no cost to the customer.

Learn more about ACH transfers.

What is a wire transfer?

A wire transfer is a method of electronic money transfer that moves money directly from one bank to another. Unlike ACH transfers, wires are often processed individually and in real-time. This makes them one of the fastest ways to send large amounts of money.

Domestic wires in the US usually travel through the Fedwire system, which is operated by the Federal Reserve.

For international payments, banks typically use the SWIFT network, a global messaging system that allows banks to communicate securely across borders, using intermediary banks. Because most banks don't have direct connections with every other bank around the world, your money may pass through one or more intermediary banks before reaching its destination. These intermediary banks may deduct their own service fees along the way, which can sometimes result in the recipient ending up with slightly less than the amount you sent them.

Because wire transfers are handled with priority and involve more manual oversight, banks usually charge a higher fee for them than they do for ACH transfers.

Learn more about wiring money from the US.

What is an online money transfer?

Online money transfers are payments made through digital platforms or fintech apps like ours. These services often use a combination of existing banking networks and modern technology to make the experience faster and easier.

Some online platforms use their own internal networks to move money quickly between customers. Others might use a combination of local payment networks to avoid the high costs and slow speeds associated with traditional international banking systems.

These methods have become popular for everyday payments between friends and small business transactions because they often combine the speed of a wire with the low cost of a bank transfer.

A comparison of payment methods in the US

When you're trying to decide between these methods, you need to balance 3 main factors: how quickly the money needs to arrive, how much you're willing to pay, and how secure the transaction needs to be.

Comparing speed and processing times

The speed of your transfer depends on how the network handles the data.

• Wire transfers: These are the fastest option. Domestic wires are usually completed on the same business day if you meet the bank's cut-off time. International wires typically take 1–5 business days, depending on the destination and the number of intermediary banks along the way.
• Bank transfers (ACH): These are generally slower because of the batching process. A standard ACH transfer typically takes 1–3 business days to settle. While same-day ACH is becoming more common, it's not yet standard for most transactions.
• Online money transfers: Speed varies by provider. If you're sending money to someone who uses the same app, like if you both use Revolut, the payment often goes through right away. If you're sending money from your app to someone with a traditional bank account who doesn't have the same app, it may take anywhere from a few minutes to a few business days.

Costs and fees to consider

The cost of moving money is one of the most obvious differences between a bank transfer vs wire transfer.

• Wire transfer costs: Banks often charge significant fees for wires. In the US, you might pay between $25–35 for a domestic wire or $45–50 for an international one. The recipient's bank may also charge an incoming wire fee.
• Bank transfer (ACH) costs: For regular customers, domestic ACH transfers often cost nothing. Businesses may pay a small fee per transaction, but it's usually much lower than a wire fee.
• Online money transfer costs: Many apps, including ours, offer no-cost transfers between their own customers. For sending money to external bank accounts or across borders, fees are typically much lower than for traditional bank wires. At Revolut, we're upfront about any necessary fees on our end before you go through with the payment.

Safety and reversing payments

It's important to think about security when you're making a transfer, especially for larger payments.

• Wire transfers: These are considered push payments and are generally irreversible. Once the money's been sent and received, it's almost impossible to get it back. This is why wire transfers are the standard for real estate purchases but also a target for scammers. You should only wire money to people you know and trust.
• Bank transfers (ACH): These offer more customer protection. There are established rules for disputing unauthorized ACH transfers and, in some cases, a payment can be reversed if an error has occurred.
• Online money transfers: Most modern providers, including us, use two-factor authentication and advanced fraud monitoring. However, like wires, transfers to friends using the same app are often difficult to reverse once the recipient has the money, so always double-check their details before you make a payment.

Learn more about sending and receiving money with Revolut.

Bank transfer, wire, or online money transfer: Which method is right for your situation?

Choosing the right tool depends on what you need.

Choose a bank transfer (ACH) if:

• you're paying a recurring bill like a mortgage or car payment
• the payment isn't urgent and can arrive in a few days
• you want to avoid paying a service fee
• you're moving money between your own accounts at different US banks

Choose a wire transfer if:

• you're buying a house and need to send a down payment
• the recipient needs the money guaranteed on the same day
• you're sending a very large amount of money (e.g. $50,000 or more)
• the recipient specifically requires "cleared" money right away

Choose an online money transfer if:

• you're splitting a bill with a friend or sending a gift
• you want a simple, mobile-first experience
• you're sending money abroad and want to avoid high bank fees
• you want to track your payment in real-time

Why Revolut is a good choice for transfers

We've designed our platform to give you the best of all 3 options, because you shouldn't have to choose between speed, cost, and security.

When you send money with us, we look for the most efficient route. For domestic payments in the US, we use the ACH network to keep costs low. If you need speed, our Revolut-to-Revolut transfers are real-time and carry no transfer fees.

For international payments, we use local payment networks whenever possible. This helps us avoid the multiple intermediary banks that usually slow down traditional wires and add extra costs. We also show you the exchange rate and any applicable fees in-app before you hit Send, giving you clarity and control over your money. Check out our guide to international transfer fees, rates, and limits to learn more.

How to send money with Revolut

Ready to start sending money? We've made the process simple. Here's how it works:

1. Download the app: Find us on the App Store or Google Play Store and download the app to your phone.
2. Sign up for Revolut: Follow the prompts to create your account. You'll need to provide your phone number, address, and Social Security number for identity verification.
3. Add money: You can put money into your account using a debit card, a transfer from another account, or via Apple Pay or Google Pay.
4. Choose your recipient: Tap the Payments tab in-app, then the + symbol in the top-right corner.
5. Enter their details: Choose your preferred payment method and add the recipient's details. For a bank transfer, you'll need their name, account number, and 9-digit routing number. For international transfers, you may need their SWIFT code or IBAN.
6. Review and send: We'll show you exactly what the recipient will receive, any fees, and the estimated arrival time. When you've checked these, tap Send.
7. Track your payment: You'll get real-time notifications when the money leaves your account and when it arrives at its destination.

Exchange and global transfer fees, fair usage limits, and Terms and Conditions apply.