Wire Transfer Agreement



Any customer who has ever done a lot of financial business is probably familiar a wire transfer transaction. This is not the Western Union type money operation but an inter-bank transfer conducted among financial institutions. Trillions of dollars are moved between banks by wire every day. This includes the Federal Reserve, as well as all member banks. Banks perform these daily as a matter of day-to-day loan business. But an individual may want to initiate a wire transfer for his own reasons, which may include making an installment payment, moving money to a brokerage account, or merely sending money to a relative.



The person wishing to have a transfer performed does so by going into a bank and asking to initiate a wire transfer to an account at anther bank. But before anyone will execute the request, the requester will be required to fill out and sign a fairly detailed wire agreement. It's going to request information that is obvious and necessary in order to perform the transfer, such as name, account number, and the destination bank and account number that the funds are going to. The form will request a routing number for the receiving bank. Be aware that some banks have two routing numbers: one for general business transactions, and a separate one designated specifically for wires. If the transactions become frequent and recurring, one will probably want to set up a permanent agreement so that routine funds transfers can be executed with only a phone call. That way there will be no need to go into the bank every time to do a transfer.

The agreement doesn't involve signing away one's life, but it does include stipulations that put the customer at somewhat of a disadvantage to the bank. This is the tradeoff between convenience and reality. A bank manager can provide the agreement that must be signed. It outlays the terms and conditions under which wire transfers will be conducted. In some respects, it resembles a checking account or credit application. However, it's basic utility is not the same and it is for the most part quite different.