What is a wire transfer (2025): Fees & alternatives

Key takeaways

• Wire transfers are a commonly used method for sending money directly between bank accounts, whether within Malaysia or overseas. 

• While wire transfers are known to be reliable, they often come with steep fees, foreign exchange markups, and no option to reverse payments once sent. 

• Unlike traditional wire transfers that rely on the SWIFT network and often come with high fees and delays, Airwallex connects to local payment rails around the world. This lets you send payments to 120+ countries in 60+ currencies without incurring SWIFT fees, with 95% of transfers arriving as fast as within the same day. You get faster, more cost-effective global payments without the usual friction, so your business can move with greater speed and confidence.

Need to send money abroad for your business? International wire transfers are a common way to move money directly between bank accounts globally, but they're not always the fastest or most cost-effective option.

If you’re unsure about wire payments or whether they suit your business, this guide walks you through their pros and cons – including costs, security, and when to use them. You’ll also discover how Airwallex gives your business a better way to pay globally – faster, with lower fees, better FX rates, and no hidden charges.

What is a wire transfer?

A wire transfer is an electronic funds transfer method that lets businesses send or receive money directly between two bank accounts, either domestically or internationally. These transfers are processed through secure systems like Society for Worldwide Interbank Financial Telecommunication (SWIFT), Fedwire, and Clearing House Automated Payment System (CHAPS) to deliver funds safely. While the term “wire transfer” is commonly used in North America, it’s often called a “telegraphic transfer” (TT) in Southeast Asia. For clarity, we’ll use “wire transfer” in this article.

Wire transfers are ideal when you need to move large sums across borders. However, they can take anywhere from between one to three working days to go through. They also incur wire transfer fees, as banks and money transfer operators often charge high transfer fees and FX markups. 

How does a wire transfer work?

Here’s what happens when you initiate a wire transfer:

1. Enter recipient details: Provide the recipient’s full name, account number, and bank branch info. For international transfers, include a SWIFT code or International Bank Account Number (IBAN). 

2. Verify your identity: Your bank will run identity checks and validate the transfer details as part of its security process. 

3. Pay transfer fees: You can expect fees such as bank charges, currency conversion costs, and fees from any intermediary bank.

4. Transfer is sent through network: Your bank securely sends payment instructions to your recipient's bank. Your transfer may go through multiple intermediary banks, depending on where you're sending the money.

5. Funds received: Your recipient will typically receive the funds within a few hours to several business days.

How long does a wire transfer take?

International wire transfers sent via SWIFT typically take one to eight business days to complete. These payments may pass through several intermediary banks, depending on the destination and currency. Time zone differences and compliance checks can also delay delivery.

Airwallex uses local payment rails like DuitNow and IBG to bypass the SWIFT network. These options offer faster settlement and significantly lower fees, making them ideal for businesses that regularly send funds to overseas suppliers, partners, or employees.

Types of wire transfers

Wire transfers typically refer to international payments made between banks in different countries. Domestic wire transfers also exist, but they're less common – especially in markets like Malaysia, where faster alternatives such as DuitNow are widely used for domestic transfers.

Depending on where the sender and recipient banks are located, and the network used to process the transaction, wire transfers can vary in speed, cost, and coverage.

Here are some of the most common types of wire transfer types available to businesses:

International wire transfers

International wire transfers electronically move money between bank accounts in different countries. These payments are usually processed through SWIFT and require information like the recipient’s account number and SWIFT code to ensure funds reach the right destination.

Your transfer can go through different networks. The table below shows the main networks used for wire transfers.

Are wire transfers safe?

Wire transfers are a safe way to send money – here are some of the security features that make them trustworthy:

Encryption and security protocols

When you send a wire transfer, your payment data travels through encrypted channels using Transport Layer Security (TLS) and Secure Socket Layer (SSL). This prevents anyone from accessing or intercepting your sensitive information.

Strict identity checks

Payment providers run identity checks before processing your wire transfer. This includes a Know Your Customer (KYC) process where you provide basic information about yourself and why you're making the transfer. It's a quick but important step that helps prevent fraud and makes sure your money reaches the right person.

Financial regulatory protection

Bank Negara Malaysia (BNM), Malaysia's central bank, monitors wire transfers to detect and prevent fraud, money laundering, terrorist financing, and other illegal activities. Banks must follow BNM's Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) rules when processing wire transfers.²

Secure payment finalisation

Wire transfers are final once processed. This means you can feel confident your payment is complete and settled.

Pros and cons of wire transfers

International wire transfers sent via SWIFT are secure and widely accepted, but they come with trade-offs. Airwallex offers a modern alternative that offers the same level of reliability, while improving on speed, cost, and transparency.

Pros of SWIFT wire transfers

• Fast: Send large international payments where local rails aren’t available 

• Globally accepted: Reach most countries and banks using a single standard

• Traceable: Payment status across the SWIFT network can be tracked 

Cons of SWIFT wire transfers

• Expensive: Fees to sending banks, intermediary banks, and recipient banks can add up 

• Slow: Transfers can take one to five business days, depending on route and time

• Poor FX rates: Banks often build hidden markups into their exchange rates

• Irreversible: Mistakes in recipient details can be hard to fix once funds are sent

Airwallex provides all the benefits of a traditional wire transfer – without the high fees, slow processing times, and hidden markups that can chip away at your bottom line. Thanks to our connections to local payment rails in 120+ countries, you can move money globally at lower cost and greater speed.

Airwallex is licensed and regulated in the countries we operate‌ in, including the Financial Crimes Enforcement Network (FinCEN) in the US, Financial Conduct Authority (FCA) in the UK, and the Monetary Authority of Singapore (MAS) in Singapore. All data is encrypted, and we use an AI-powered fraud detection system to prevent unauthorised access, along with two-factor authentication and role-based access controls for added protection.

With Airwallex, you get a faster, more cost-effective way to send international payments – backed by the same level of trust, compliance, and infrastructure security you’d expect from a traditional financial institution.

How much do wire transfers cost?

Wire transfers may involve various fees, including hidden charges for sending funds and currency conversion. If your business sends money overseas often, these costs can add up fast, especially when using the SWIFT network. Let’s look at what you pay for a wire transfer and why.

International wire transfer fees in Malaysia

Transfer fees vary by country and provider, but SWIFT transfers are typically more expensive than other methods due to the number of intermediaries involved.

Here's a comparison of wire transfer fees charged by traditional banks in Malaysia versus Airwallex:

Note: All values are approximate and based on exchange rates as of June 2025.

You may also face additional receiving fees (typically RM10–20), intermediary bank charges, and currency conversion markups.

Why FX markups increase your transfer costs

When you send money internationally, the cost isn’t just about the transfer fee – it’s also about the exchange rate you’re given. Many providers, including traditional banks, apply markups on top of the base FX rate charged. This means you pay more than the real market rate to convert your money.

This is because traditional banks often manage large-scale currency trading desks with complex infrastructure and regulatory requirements. These additional overheads are passed on as exchange rate spreads to cover costs and earn profits. 

Rates and fees may also depend on the provider’s pricing structure, and whether they prioritise speed, scale, or convenience. 

How to navigate high wire transfer fees and exchange rates

If your business makes international payments regularly, relying solely on traditional SWIFT transfers can drive up costs quickly. 

Airwallex offers a more efficient and cost-effective way to pay globally, by routing payments through local payment rails where available, instead of defaulting to SWIFT. This brings several key benefits:

• Lower transfer costs: Avoid unnecessary bank and intermediary fees for global payments to 120+ countries across 60+ currencies

• Better FX rates: Access market-leading exchange rates and save up to 80% on FX fees

• Faster processing times: 95% of transfers via local payment rails arrive instantly or within the same day

• Transparent pricing: No hidden bank charges or inflated FX margins, so what you see is what you pay for

These features come as part of our all-in-one financial platform designed to streamline your global operations. Connect Airwallex to your favourite accounting software in just a few clicks to automatically reconcile transfers, and send batch payments to up to 1,000 recipients around the world in just a few clicks.

Banks and fintech providers with wire transfer services

There are many banks and fintech providers in Malaysia that can help you make wire payments. Here’s how their fees, exchange rates, and payout coverage compare.

Note: The information in this table has been reviewed to be accurate as of 5 June 2025.

Wire transfers send money safely, but the costs can add up. Modern payment providers like Airwallex offer competitive exchange rates, lower fees, and faster delivery through local payment networks, so you can send money globally for less.

Manage global payments and FX rates with Airwallex

Traditional international wire transfers, especially those routed through SWIFT, are built on legacy infrastructure. For growing businesses, that means slower payments, unpredictable fees, and poor exchange rates that quietly chip away at margins. 

Airwallex simplifies global payments with fast, secure transfers to 150+ countries in 60+ currencies. We route 90% of payments through local payment rails, helping you complete transfers faster and at a lower cost. 

With Airwallex Global Accounts, you can also receive, hold, and send funds across 60+ countries without forced conversions or unnecessary fees. This is on top of access to our market-leading FX rates, which can help you save up to 80% on currency conversion costs.  

It’s how fast-growing international brands like Mighty Jaxx stay ahead. The Singapore-based design studio uses Airwallex to make payments to its global network of vendors, suppliers, and employees more efficiently. 

Whether you’re managing international payroll, supplier payments, or customer refunds, wire transfers are essential – but they don’t have to come with the usual complexity or cost. That’s why over 150,000 businesses around the world – including many right here in Malaysia – choose Airwallex to move money globally, with better rates, fewer fees, and full visibility from start to finish.

Frequently asked questions (FAQs)

What is the difference between a bank transfer and a wire transfer?

Bank transfers involve sending money directly from one bank account to another. Wire transfers involve extra steps to ensure the transaction stays secure, such as sending and verifying information about the transfer to the receiver’s bank before moving the funds.

Is a wire transfer the same as SWIFT?

No, while the two terms are often used interchangeably, they refer to different things. A wire transfer is an electronic fund transfer method, while SWIFT operates as one of several systems that can process wire transfers. Other networks can also process wire transfers, like Malaysia's RENTAS system or Fedwire in the US for high-value domestic transfers.

What is the difference between wire transfers and ACH?

Wire transfers come in different forms, depending on the country and network it leverages. Wire transfers and other international payment methods like ACH each serve different needs. In Malaysia, wire transfers are often processed through SWIFT, a secure global messaging network used to send international payment instructions between banks.

ACH is another kind of international wire transfer that's widely used in the US. With ACH, payments are processed in batches, and are typically used for recurring, lower-value transactions like payroll deposits and bill payments within the country. While ACH transfers take a few business days to complete, they come with two key advantages: they cost less and let you reverse payments. You can also schedule ACH payments ahead of time, making it a common option for routine, non-urgent transfers.

How do I choose between wire transfers and ACH payments?

Wire transfers are commonly used for high-value cross-border transactions that need to be settled in full, without the risk of reversal.

ACH transfers – or their local equivalents such as IBG or DuitNow in Malaysia – are designed for recurring or non-urgent payments, especially within a domestic setting. They’re well suited for batch transactions like payroll, bills, or supplier payments, where lowering transfer costs is a priority.

What information is required to make a wire transfer?

To send wire transfers, you need to:

• Enter the recipient's full name and address

• Specify the recipient’s bank account number

• Include the bank name and branch location in full

• Add the SWIFT code or IBAN for international transfers

Sources: 

1. https://www.maybank2u.com.my/maybank2u/malaysia/en/personal/frequent_queries/fund_transfers/giro-transfer-cut-off-time.page

2. https://amlcft.bnm.gov.my/faq/tfs-fi/wire-transfers

3. https://www.maybank2u.com.my/maybank2u/malaysia/en/personal/banking_fees/cost_of_wire.page

4. https://www.cimb.com.my/en/personal/day-to-day-banking/remittance/speedsend.html

5. https://www.cimb.com.my/en/personal/help-support/rates-charges/profit-rates-charges/fees-and-charges/remittance.html

6. https://www.maybank2u.com.my/maybank2u/malaysia/en/personal/services/funds_transfer/overseas/foreign_telegrapic_transfer.page

7. https://www.paypal.com/my/digital-wallet/paypal-consumer-fees

​​This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Malaysia) Sdn Bhd is licensed in Malaysia as a MSB Class B (remittance business only) licensee and is regulated by Bank Negara Malaysia (licence number 00318).