No. Although both methods involve electronic money transfers, they operate on different systems. Zelle is a peer-to-peer (P2P) payment service for transferring funds between individual bank accounts, while wire transfers are generally used for larger transactions and can be sent domestically or internationally.
Ask the Bank to Waive the Fee
Some banks actually have public-facing fee waiving policies depending on the situation. For example, banks like Chase, TD Bank and Bank of America can all opt to waive wire transfer fees for domestic incoming wires if you have an account with them (in good standing).
Chase Bank offers free wire transfers for its customers, which is a great advantage. However, the associated costs should be taken into consideration before using the service. In particular, the foreign exchange rates offered by Chase Bank may not be the most competitive.
Typically, banks may not charge fees for online transfers, except for IMPS. IMPS transactions incur charges, as specified by the bank. Select the beneficiary, enter the transfer amount and a small description of the transfer. To add the beneficiary, you'd need their name, bank details, bank account number and IFSC.
Banks charge a flat fee for sending a wire transfer. Domestic transfers tend to cost around $30, while international transfers generally cost more, approximately $40. In most cases, the recipient will pay an incoming wire transfer fee of around $20, along with intermediary bank fees for international wires.
Differences Between Electronic and Wire Transfers
Speed: One of the main differences between EFT and wire transfers is the speed. Electronic transfers are typically faster for domestic transactions, often processing within hours or the same day.
The nine apps highlighted in this article—Wise, Revolut, OFX, Western Union, Xoom, Remitly, Xe Money Transfer, and WorldRemit—each offer unique features and benefits. Whether you prioritize low fees, fast transfers, or extensive global reach, there's an app that's perfect for you.
Because wire transfers are typically irreversible, if you make a mistake or if you are tricked, you may not be able to get your money back.
When it comes to costs, ACH is usually the cheapest option. Business owners who use ACH for direct deposit payments will also have to pay a small fee, but this is generally less than the cost of a wire transfer.
You do need to pay tax on wire transfers sent to a foreign bank account, if the transfer exceeds a certain sum. Any amount over $16,000 sent to a foreign bank account is likely to be considered as a taxable gift by the IRS.
Select a bank or other financial institution that may reduce or waive wire transfer fees or offer lower costs than competitors. Not all banks or financial institutions charge fees for types of wire transfers. Some reduce wire transfer fees or offer fee waivers to eligible accounts.
You can send money without a fee by using P2P payment apps such as Cash App, Google Pay, PayPal, Venmo and Zelle. Note that you may have to pay a fee if you fund your transfer with a credit card, and the recipient may have to pay a fee if they choose to receive the money instantly in their bank account or debit card.
payments & transfers – online banking Send a domestic wire transfer. Wire transfers 1 are a quick way to send money domestically or internationally. While you can do both in Mobile Banking 2 and Online Banking, this guided demo will focus on wire transfers sent to domestic recipients in Online Banking.
Zelle isn't considered a wire transfer. Wires are used for large payments between bank accounts, such as the down payment on a new home – and you can send a wire transfer in the US or overseas. In comparison, Zelle is an ACH.
ACH transfers take a bit longer to process, but they are usually free or at least low-cost. They're also ideal if you're looking for a convenient way to pay bills from your bank electronically. But if you need the funds to arrive the same day or make a cross-border payment, a wire transfer is likely the best option.
International money transfer services like Western Union can help you easily send money abroad, and the fees may be less compared to traditional banks. Plus, Western Union can be a more convenient option because there are additional methods to send and receive money such as cash pick-up.
New apps like PayPal and Zelle make it easy to send money to friends and family in a matter of minutes, with no fees. Western Union and MoneyGram can be used to send money to a different city, state, or country for a fee.
The sender's bank will charge the sender a fee for the payment orders, while the beneficiary pays the charges of any intermediary bank (and those of his / her own bank, if there are any). The intermediary bank fees are deducted from the amount transferred.
U.S. Bank charges a fee for wire transfers, whether initiated in the U.S. Bank Mobile App, online, or by other means. You'll see U.S. Bank's fee amount before you confirm your submission.
As a rule of thumb, PayPal is the best option to transfer money between bank accounts, MoneyGram or Xoom are usually cheaper for transferring money from a sender's debit or credit card to a recipient's bank account, and MoneyGram has no fee for international transfers.
Balance transfer fee. This fee will typically be 3% to 5% of the amount transferred, which translates to $30 to $50 per $1,000 transferred. The lower the fee, the better, but even with a fee on the high end, your interest savings might easily make up for the cost.
How long does a wire transfer take? Domestic wire transfers are often processed within 24 hours while international wire transfers can take between 1-5 business days. Wire transfer times may also vary depending on designated cut-off times, federal regulations, as well as weekends and bank holidays.