What is a wire transfer?

Investopedia defines a wire transfer as an electronic transfer of money between people, businesses, institutions or entities across the worldwide network of banks. The money sender provides a banking institution with directions to the recipient's institution and the money or account information from which the money should be drawn.

About.com notes that the funds reach the recipient nearly immediately and can be irretrievable; thus, wire transfers are a preferred avenue for scams. Retail money transfer businesses and banks both charge fees to wire money. Investopedia states that these fees are often tied to the amount of money being transferred. About.com suggests that banks are more likely to charge a flat rate.