Wire transfer
A fast electronic transfer between banks, often used for large or international payments, that carries little remittance information.
Wires settle quickly and are hard to reverse, which makes them common for high-value and cross-border payments. The payment message has room for only a short reference, so invoice detail usually arrives separately.
Intermediary bank fees can also reduce the amount received, leaving a small short payment that needs a decision.
Related terms
- ACH paymentAn electronic bank transfer through the US Automated Clearing House network, one of the most common ways US businesses pay each other.
- Short paymentWhen a customer pays less than the full invoice amount, leaving a balance that needs to be explained, accepted or collected.
- Remittance adviceThe details a customer sends with or alongside a payment, saying which invoices it covers and explaining any deductions.