Film Accounting Glossary
Wire transfer
What is a wire transfer?
Also called bank wire, or telegraphic transfer.
A wire transfer is a same-day bank-to-bank payment, used for time-critical and international payments where ACH is too slow.
Wires cost more per transaction and, crucially, are effectively irreversible once sent, which makes them the target of payment redirection fraud. Standard controls are dual authorization and independent verbal verification of any new or changed beneficiary details before the wire is released.
Example
A $180,000 wire to a foreign vendor is effectively irreversible once sent, which is why it takes dual authorization plus a verbal check to a known contact on any new or changed beneficiary details. ACH is cheaper and slower; wires are for same-day and cross-border.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Time-critical and international payments. The dual-authorization rule belongs in the written internal controls.
Common mistake
Releasing a wire on emailed instructions alone. Wires are effectively irreversible, which is exactly why payment redirection fraud targets them.
Related questions
- When does a production use a wire instead of ACH?
- For same-day payments and international transfers, where ACH is too slow, accepting the higher cost and the loss of reversibility.
- What controls should apply to a wire transfer?
- Dual authorization, and independent verbal verification of any new or changed beneficiary details before release.