A wire transfer is the electronic transfer of money. In the case of a bank to bank transfer, no actual cash is exchanged, but electronic balances in each account is adjusted. This is a very safe way to transfer funds, as positive identification of both account holders is required, and no opportunity cost again, unlike with a personal check. Wire transfer has become a very popular method of payment for banking transactions such as personal account management - such as transferring funds from a savings account to a checking account - and ATM-card purchases at point of sale. Every time you swipe your ATM card at a retailer, you are authorized wire transfers from bank accounts associated with cards for retailers bank account. A point of sale wire transfers are generally free to customers, but the cost often accompanies other wire transfer.
A bank transfer-to-bank wire has the advantage of a much more secure and desirable than other forms of payment. Wire transfers even save paper by reducing the need for checks and deposit slips, making them more environmentally friendly than standard forms of banking. To find out how you can benefit from wire transfers for automatic bill payment and other services that reduce hassle and paper, contact your banking institution.