Wire transfer: Meaning, process and costs for global payments

Key takeaways:

• Wire transfers let you move money quickly and securely between bank accounts, giving you more speed and reliability than other methods like Faster Payments or ACH.

• International wire transfers usually go through the SWIFT network and can take up to a few business days. You’ll also pay fees and may face less favorable exchange rates compared to modern platforms.

• Airwallex makes global payments faster, more cost-effective, and easier to manage, so you can send international payments without worrying about hidden fees or slow transfers.

If you’re sending money for your business, whether domestically or across borders, wire transfers are one of the most common ways to move funds securely. They’re reliable, but they come with high fees and less competitive exchange rates.

This guide walks you through how wire transfers work, what they cost, how safe they are, and when they make sense for your business. We’ll also show you how Airwallex can be a faster and cheaper way to send money internationally.

What is a wire transfer?

A wire transfer is a way to move money electronically from one bank account to another, either within the same country or across borders. Businesses often use them for large payments because they’re reliable and secure.

To send a wire transfer, you provide your bank with the recipient’s details, like their name, account number, and the amount you want to send. For international transfers, you’ll also need codes like SWIFT or IBAN. Your bank then sends the payment instructions to the recipient’s bank, which deposits the funds into their account.

What are the benefits of wire transfers?

Wire transfers offer a few key advantages that make them popular for businesses, especially if you work internationally. Here are three key benefits of wire transfers:

1. Wire transfers are widely accepted

Wire transfers work across borders and are supported by virtually every bank, making them a practical choice for paying suppliers or receiving funds from overseas clients.

2. Wire transfers are reliable

Once you initiate and authorise a wire transfer, the money is almost guaranteed to reach the recipient if all the details are correct. This makes them a trusted option for high-value transactions.

3. Wire transfers are predictable and traceable

Wire transfers provide clear records of your transactions, so you can track payments and verify that funds have been sent and received. 

Types of wire transfers: Domestic vs international

Not all wire transfers are the same – the process, cost, and speed vary depending on whether you’re sending money within your own country or across borders.

Domestic wire transfers

Domestic wire transfers move money between banks within the same country (in this case, within Malaysia). Since they don’t involve currency conversion or intermediary banks, they’re usually simpler, cheaper, and more predictable than international transfers. 

For domestic wire transfers in Malaysia, businesses often use RTGS (Real Time Gross Settlement) or IBG (Interbank GIRO).

International wire transfers

International wire transfers (also known as telegraphic transfers) let you send money to banks outside Malaysia. These are more complex because they often involve currency conversion and one or more intermediary banks. As a result, they typically take longer and cost more in fees. 

In Malaysia, most international transfers go through the SWIFT network.

Common payment networks and transfer systems

Different systems and networks handle wire transfers globally. For international payments, you’ll most commonly come across SWIFT – but there are other systems worth knowing too.

SWIFT (Society for Worldwide Interbank Financial Telecommunication)

SWIFT is the main network used for international wire transfers from Malaysia. It connects banks across 200+ countries and territories¹, allowing them to securely send payment instructions to one another.

When you send money overseas from a Malaysian bank, it almost always travels through SWIFT, sometimes passing through one or more intermediary banks before reaching the recipient.

SWIFT offers:

• Global reach: Lets you pay suppliers or partners almost anywhere in the world

• Strong security: Uses encrypted messaging to protect sensitive payment data

• Multi-currency support: Handles a wide range of currencies and transaction types

That said, SWIFT transfers can be slower and more expensive because each intermediary bank may take a fee – and you won’t know the final cost upfront.

ACH (Automated Clearing House)

ACH is mainly used in the United States for domestic bank transfers. It’s popular for things like payroll and supplier payments because it’s low-cost. However, it’s slower than traditional bank wires, since payments are processed in batches.

Generally, the ACH is best suited for routine, non-urgent transactions within the US. You won’t be able to initiate ACH transfers from Malaysia. 

SEPA (Single Euro Payments Area)

SEPA is Europe’s standardised payment system for Euro transfers. It allows businesses and individuals to send EUR payments across participating European countries quickly and at low cost.

If you’re paying vendors in Europe, SEPA can be a more affordable alternative to SWIFT. However, it only works for euro-denominated transfers within the SEPA region.

FPS (Faster Payments Service)

Faster Payments is a UK-only system that enables near-instant domestic transfers between British bank accounts. Like ACH, you won’t be able to use Faster Payments directly from Malaysia. 

How does a wire transfer work?

Wire transfers move money electronically from one bank account to another, either domestically or internationally. Here’s a step-by-step overview of what happens when you send a wire transfer:

Step 1: Initiate the transfer

You provide your bank with the recipient’s information, including their full name, account number, and bank branch. For international transfers, you’ll also need the SWIFT or IBAN code.

Step 2: Verification and authorisation

Your bank checks your identity and authorises the transaction. Fees may apply at this stage.

Step 3: Transmission

The bank sends your payment instructions securely to the recipient’s bank. For international transfers, one or more intermediary banks might be involved.

Step 4: Receipt

The recipient’s bank receives the funds and credits them to the account. Depending on the transfer type and destination, this process can take anywhere from a few hours to a few business days.

What you’ll need to send a wire transfer

Before you initiate a wire transfer, it’s important to have all the necessary details ready. Here’s a checklist of what you’ll need to provide:

Are wire transfers expensive?

Wire transfers can be costly. High fees and unfavourable foreign exchange rates mean international transfers add up quickly, especially if you send money frequently.

Why wire transfer fees are high

Several factors drive traditional wire transfer costs:

• Operational costs: Banks maintain complex technology, security systems, and trained staff to handle transactions.

• Intermediary fees: International transfers often involve multiple banks, each charging their own fees.

• Regulatory compliance: AML and KYC checks add administrative costs to every transfer.

How much are domestic wire transfer fees?

Here are the costs for domestic transfers:

• MY: Typically free. For example, Maybank’s online and mobile banking does not charge a fee for third-party transfers, Interbank GIRO (IBG), and Instant Interbank Funds Transfer (IBFT)³.

• US: $25–$30 per transaction²

• UK: ~£20 per transaction⁵

How much are international wire transfer fees?

Here are the costs for international wire transfers:

• MY: Typically RM10–RM30. For example, Maybank’s outward telegraphic transfer fee starts from RM10³.

• US: $50 or more per transaction²

• UK: £5–£25⁵

How much do FX costs add to wire transfers?

When it comes to FX costs, banks typically embed a markup on currency conversions rather than offering the true mid‑market rate. World Bank data on remittance prices shows that, once you include both this exchange rate margin and any upfront fees, the total cost of sending money internationally averages around 6.5% of the amount sent⁶.

Modern payment providers like Airwallex help you get better exchange rates by offering transparent FX margins that are much closer to the mid‑market rate. With Airwallex, you can significantly reduce the cost of international payments, and save up to 80% in FX fees.

How safe and secure are wire transfers?

Wire transfers are one of the safest ways to move money. Banks and payment providers use strong encryption to protect your financial data during transfer, and verify both sender and recipient identities through KYC checks to prevent unauthorised transactions.

Transfers are also monitored by regulatory authorities to detect fraud, money laundering, and other illegal activity. Once a wire transfer is completed, it’s irreversible, giving both you and the recipient certainty and reducing the risk of payment disputes.

Modern alternatives to traditional wire transfers

If you’re sending money internationally, you don’t have to rely solely on traditional banks. Modern payment platforms can offer faster transfers, lower fees, and more competitive exchange rates. 

Here’s a comparison of how different providers stack up:

The information in this table has been reviewed to be accurate as of 9 February 2026.

Simplify international payments with Airwallex

While wire transfers are reliable, their high fees, slow processing times, and poor exchange rates can slow you down. You need a better way.

That’s where Airwallex comes in – we’re a modern fintech solution that helps you move funds faster, reduce fees, and manage payments more efficiently. With Airwallex, you can: 

• Hold and pay in multiple currencies: Hold funds in 20+ currencies and pay suppliers or employees in their local currency, avoiding unnecessary conversion fees.

• Access competitive FX rates: Get rates much closer to the interbank market, so you save up to 80% on FX costs.

• Send money quickly: Use local rails in 120+ countries to speed up transfers. 93% of payments sent via Airwallex arrive on the same working day.

• Streamline workflows: Batch payments, customisable approval processes, and accounting integrations make managing international transfers easier.

Frequently asked questions (FAQs) 

What’s the difference between a bank transfer and a wire transfer?

Bank transfers refer to any electronic fund movement between accounts, including slower methods like Bacs. Wire transfers are a specific type known for their speed, security, and suitability for high-value or international payments.

What is a wire transfer vs ACH?

A wire transfer is a real-time electronic payment used for urgent, high-value, or international transactions, while an ACH transfer (Automated Clearing House) is a slower, batch-processed payment method mainly used for routine domestic transactions in the US, like payroll or supplier payments. For Malaysian businesses, ACH isn’t typically an option, so wire transfers remain the standard for cross-border payments.

How much does a wire transfer cost?

Wire transfer costs vary depending on whether it’s domestic or international. In Malaysia, domestic transfers are typically free, while international transfers usually cost around RM10–RM30. These fees don’t include currency exchange mark-ups or charges from intermediary and receiving banks.

To reduce costs, use Airwallex, which lets you make international payments via local rails to 120+ countries with no SWIFT fees.

Can I send a wire transfer online?

Yes, you can send a wire transfer online through most banks and payment platforms. You just need to log in to your online banking portal or mobile app, enter the recipient’s details, specify the amount and currency, and authorise the payment. Modern platforms like Airwallex make this process even easier, letting you manage your international transfers and track payments online.

How can I send a wire transfer quickly?

To expedite a wire transfer, ensure all recipient details are accurate before sending, initiate the transfer well before your institution’s daily cut-off time, and consider using a modern payment platform that leverages local payment rails to bypass the slower SWIFT network where possible.

Sources:

1. https://www.swift.com/about-us/who-we-are

2. https://www.bankrate.com/banking/wire-transfer-fees/

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

4. https://www.starlingbank.com/resources/banking/what-is-chaps-guide-to-chaps-payments

5. https://moneytransfercomparison.com/banks

6. https://remittanceprices.worldbank.org/

7. https://www.airwallex.com/sg/pricing

8. 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).