Global payments
Posted on Jun 13, 2025
One of the biggest challenges for exporters and global freelancers is figuring out how to receive international payments quickly, securely, and without losing money to hidden fees.
The two common options people get confused between are wire transfer and bank transfer (ACH). Both have pros and cons, and understanding the difference can help you risk delays, unexpected fees, or compliance issues.
In this guide, we'll discuss wire transfer vs bank transfer in detail and help you decide the best method to receive international payments.
What Is Wire Transfer?
Wire transfer meaning
Wire transfer is an electronic method of sending money online from one bank account to another, across different countries. It is one of the popular payment methods for fast, secure international payments.
How does a wire transfer work?
Wire transfers rely on global networks like SWIFT (Society for Worldwide Interbank Financial Telecommunication). Here’s how it works:
Step 1: Transfer initiation by the sender
The sender initiates the payment from their bank. They enter your bank details, including your full name, bank name and address, account number, SWIFT/BIC code, and sometimes your IBAN (for certain countries).
Step 2: Identity verification
The bank verifies the sender's identity and the details to prevent fraud.
Step 3: Money transmission
The bank sends a secure message through the SWIFT network to your (recipient’s) bank.
Step 4: Involvement of bank Intermediaries
Sometimes, intermediary banks are involved in processing international payments, especially if the two banks don’t have a direct relationship.
Step 5: Verification and Compliance
Your domestic bank reviews the incoming payment, checks for any compliance requirements (such as RBI’s purpose code), and verifies the details.
Step 6: Payment settlement
The money is debited from the sender’s account and credited to your bank account. This takes 1–3 business days depending on countries and banks.
What Is Bank Transfer (ACH Transfer)?
ACH transfer meaning
Bank transfer is a broad term for transferring funds between local bank accounts. It involves local transfer systems like Automated Clearing House (ACH) in the US or SEPA in Europe. Bank transfers follow a batch-processing system.
For global transfers, "bank transfer" may also mean local bank-to-bank transfers that happen through local clearing systems, like SEPA (Europe), FPS (UK), or NEFT/RTGS (India).
How does a bank transfer work?
ACH transfers use a centralised network to process payments in batches. Here’s how it works:
Step 1: Payment initiation
The sender uses their bank’s online platform or app to enter your account number and local bank code (like IFSC in India or routing number in the US).
Step 2: Batch payment processing
The transaction is processed through a local clearing system, like ACH in the US, SEPA in Europe, or NEFT/RTGS in India.
Step 3: Payment clearing
The ACH operator (such as FedACH in the US) processes the batch and sends payment instructions to the recipient’s bank.
Step 4: Payment settlement
The recipient’s bank credits the funds to their account, usually within 1-3 business days in ACH bank transfer. It can also happen instantly, depending on the country and network.
Wire Transfer vs Bank Transfer
Let’s compare bank transfer vs wire transfer across the most important factors for international payments.
Feature | Wire Transfer | Bank Transfer (ACH) |
Network | SWIFT, Western Union | ACH (US), SEPA (EU), local rails |
Geography | Domestic & International | Primarily domestic/local |
Speed | Same-day or next-day ( 1-5 business days) | 1-3 business days |
Cost | High (3-5% of amount, plus fixed fees) | Low or no fees |
Security | High, but irreversible | High, with dispute options |
Typical Use | Large, urgent, international payments | Payroll, bills, local transfers |
Dispute Options | None (final once sent) | Possible (ACH disputes) |
Intermediaries | Often required | Rarely needed |
Automation | Manual | Can be automated |
Purpose of Wire Transfer vs Bank Transfer
Wire Transfers
These are best for high-value, urgent, or international payments. For example, if your client is overseas and needs to send a significant amount quickly, you should choose a wire transfer.
Bank Transfers (ACH)
These are ideal for regular, domestic payments like payroll, utility bills, or local vendor payments. Bank transfers are not suitable for cross-border payments, unless you have an international bank account.
Transaction Fees and Other Charges
Now, let’s compare wire transfer vs bank transfer on the basis of charges.
Charges paid by sender (wire transfers)
1. Bank transfer fees
Major U.S./European banks typically charge up to $50 for international wire transfers.
2. Currency Conversion Fees
Banks rarely use the real mid-market exchange rate. Instead, they add a forex markup of 1–3%, which can be a significant hidden cost.
For example, if the market rate is ₹84 per USD but the bank offers ₹82, you lose ₹2 per dollar received.
3. Intermediary bank fees
International wires often pass through one or more intermediary (correspondent) banks, each of which may deduct a fee of $10-$25 each (if the payment passes through them).
Charges paid by the receiver (wire transfers)
Indian banks also apply certain charges, including FIRA fee when receiving international wire transfers:
Fee Type | Typical Range |
Receiving Charges | ₹200–₹500 depending on the bank |
FIRC/FIRA Issuance | ₹200–₹300 per certificate (mandatory for compliance) |
Exchange Rate Markup | 2–3.5% above real-time FX rates (hidden cost) |
GST | 18% on bank service fees |
Bank Transfers (ACH)
ACH transfers are generally more cost-effective, especially for domestic payments. For international ACH (such as from the US to India), the process is less direct and may involve third-party providers. Here’s a breakdown:
Fee Type | Details |
Per-Transaction Fees |
|
Monthly/Batch Fees | Some banks apply monthly or batch processing fees, especially for businesses using ACH for payroll or bulk payments. |
Same-Day Processing | Expedited ACH (same-day) transfers may have higher fees compared to standard ACH transactions. |
Return/Failure Fees | If a transaction fails due to insufficient funds or incorrect account details, banks may charge a return fee. |
Currency Conversion | If currency conversion is involved (e.g., USD to INR), a forex markup applies—though usually lower than in wire transfers. |
Third-Party Provider Fees | Platforms like Infinity charges a flat fee or 0.5% of the transaction, often offering better exchange rates than banks. |
Risks Involved With Wire Transfer and Bank Transfer
Let’s understand the risks involved in both payment methods.
Risks of wire transfers for international payments
Wire transfers are widely used for international payments, but they come with several risks:
Operational delays
Mistakes in documentation, incomplete KYC, or technical issues within the banking system can delay transactions.
If the remitter’s KYC details don’t match, the transaction may be put on hold and refunded, causing delays and potential losses due to exchange rate fluctuations.
Regulatory and compliance risks
The Reserve Bank of India (RBI) and Financial Intelligence Unit-India (FIU-IND) monitor all international wire transfers to prevent money laundering and terrorism financing.
Transfers lacking complete information or triggering red flags may be delayed, blocked, or reported for further investigation.
AML and reporting requirements
Non-compliance with anti-money laundering (AML) regulations can result in heavy fines, reputational damage, and operational challenges for businesses.
Large-value or suspicious transfers must be reported to authorities, and ongoing monitoring is required to detect anomalies.
Security concerns
Though banks use secure networks and encryption, wire transfers can still be vulnerable to hacking or interception if initiated through unsecured channels or with weak security practices.
Human error
Entering incorrect recipient details such as the account number or SWIFT/BIC code can result in funds being sent to the wrong account.
Risks of Bank Transfers (ACH and Local Bank Transfers) for International Payments
While ACH and local bank transfers are generally safer for domestic transactions, there are still risks for international payments:
Fraud and unauthorised access
If your account details are compromised, unauthorised transfers can occur. Fraudsters may exploit weak security or phishing attacks to initiate fraudulent ACH transactions.
Reversals and disputes
ACH transfers can sometimes be reversed due to errors or disputes. This is safer for the sender but can be risky for the recipient, especially if funds are withdrawn before the reversal is processed.
Processing delays
Batch processing in ACH systems can lead to delays, especially during bank holidays or technical issues.
International ACH transfers may be further delayed due to additional compliance checks.
Regulatory scrutiny
International bank transfers are monitored for compliance with AML laws. Any suspicious activity can result in the transaction being delayed, blocked, or reported, similar to wire transfers.
Incorrect account details
Errors in account or routing numbers can cause failed or misdirected transfers. While reversals are more feasible than with wire transfers, they can still cause inconvenience and delay.
How to Receive Money Faster than Wire Transfer?
Traditional wire transfers are reliable but come with high fees, slow settlement, and hidden costs.
If you want to receive international payments quickly and affordably, modern platforms like Infinity can help. It is designed for Indian freelancers, startups, and businesses to receive international payments with minimal hassle, maximum transparency, and industry-best rates.
Key Benefits of InfinityApp:
1. Zero FX markup
Infinity offers 0% markup on currency exchange, so you get the real rate with no hidden costs eating into your earnings.
2. Flat fee
Pay just 0.5% per transaction, all-inclusive. No extra charges, no surprises.
3. 24-hour money transfer
Receive your international payments in just 24 hours, much faster than traditional wire transfers that can take up to 5 days.
4. Full transparency
Track your payments in real time. No more guessing when your money will arrive.
5. No intermediary deductions
Get the full amount sent by your client with no hidden intermediary bank fees.
6. Easy compliance
Infinity provides instant FIRA documents for your international transactions, free of charge.
Conclusion
Wire transfers are fast and reliable for large, urgent, or cross-border payments. However, they’re expensive and irreversible. On the other hand ACH transfers are cheaper and safer for domestic payments, but slower and limited in global reach.
If you’re an Indian freelancer or business owner looking for the best way to receive international payment at low cost and with higher transparency, then choosing Infinity is the smarter choice.
With virtual accounts, zero FX markup, flat fees, and 24-hour settlement, you can receive your international payments faster and keep more of what you earn.
