Business Making payments

Wire Transfers vs Bank Transfers: A Quick Guide for UK Businesses

Saim Jalees

03.06.26

Read time 8 minutes

Wire transfer and bank transfer are often used interchangeably in the UK, but choosing the wrong one can mean extra costs, slower settlement or the wrong payment route for your supplier, contractor or overseas partner.

In this guide, we've explained the difference between wire transfers and bank transfers in the UK, including how Faster Payments, Bacs, CHAPS and SWIFT compare on speed, cost, payment details and common business use cases.

We've also explained how Wise Business can help UK businesses send, receive and manage international payments with fees shown before confirming a transfer.

*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

Key takeaways

Feature	Wire transfer	Bank transfer in the UK
Main use	International, large or urgent payments	Domestic UK payments
Common networks	SWIFT for international payments, CHAPS for high-value UK sterling payments^3,4	Faster Payments, Bacs, CHAPS^1,2,3
Processing time	Same day for CHAPS payments, while traditional SWIFT payments can take as long as six business days^3,4	Seconds to three working days, depending on the payment system^1,2
Cost	Often higher, especially for international payments involving currency conversion or intermediary banks	Often low for routine UK payments, depending on the provider and payment type
Best for	Overseas suppliers, large foreign currency payments and time-critical payments	UK invoices, payroll, bills and recurring payments
Recipient details	Often needs IBAN, SWIFT/BIC and bank details⁵	Usually sort code and account number

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What is a wire transfer?

A wire transfer is an electronic funds transfer that moves money directly between bank accounts. In the UK, CHAPS payments are settled individually and irrevocably in central bank funds.³

For international business payments, wire transfers commonly use SWIFT, short for Society for Worldwide Interbank Financial Telecommunication. SWIFT is a network that banks currently use to communicate with each other securely, mainly to give instructions for transferring funds between accounts.⁴

In the UK, CHAPS is the UK’s same-day payment system that is used to settle high-value wholesale payments as well as time-critical, lower-value payments.³

CHAPS payments settle individually and irrevocably in central bank funds, which makes them useful when payment finality matters.³

Wire transfers are commonly used for:

Paying overseas suppliers
Paying international contractors
Sending large foreign currency payments
Funding overseas business operations
Paying for property or business acquisitions
Making urgent high-value sterling payments through CHAPS

To send an international wire transfer, your business will usually need the recipient’s full name, bank account details, IBAN, SWIFT/BIC code and bank name and address.⁵ You can use the SWIFT/BIC code finder on Wise to locate bank codes.

What is a bank transfer?

In the UK, “bank transfer” is a general term for moving money from one bank account to another. It usually refers to domestic payments made through UK payment systems.

The main UK bank transfer types are:

Faster Payments: Payments of up to £1,000,000 can currently be received, normally within seconds on a 24/7 basis 365 days a year.¹
Bacs: Usually, a Bacs payment takes three working days to go through, and examples of Direct Credit include salary payments and pension payments.²
CHAPS: A same-day high-value sterling payment system used for urgent or large domestic transfers.³

For many everyday UK business payments, your bank may use Faster Payments. This is common for supplier invoices, contractor payments, expenses and moving money between UK accounts.

Bacs is more common for scheduled, high-volume or recurring payments, such as salaries or direct debit collections.

CHAPS is usually used when the amount is large or a same-day final settlement is essential.

Wire transfer vs bank transfer speeds

Faster Payments are usually the quickest option for domestic UK transfers. Payments typically arrive within seconds and can be sent at any time of day, 365 days a year.¹

Bacs payments take three working days. This makes Bacs less suitable for urgent payments, but useful for predictable payroll or supplier runs.²

CHAPS payments settle on the same business day, but only during operating hours.³

Traditional SWIFT payments often take as long as six business days. Popular routes may be faster, but delays can happen because of cut-off times, time zones, intermediary banks or compliance checks.⁴

If timing matters, check the estimated delivery date before sending. For urgent business payments, confirm whether the provider offers same-day or next-day delivery for your specific route and payment details.

Wire transfer vs bank transfer fees and costs

Domestic UK bank transfers are often cheaper than international wire transfers. Bacs is commonly used for high-volume payments where low per-payment cost matters.

CHAPS usually costs more than Bacs because it provides same-day high-value settlement. In 2015, the Payment Systems Regulator found that end-users typically paid between £25 and £30 for a CHAPS payment, with a maximum of £30.³

International wire transfers can be more expensive because they may include:

A sending fee
An exchange rate markup
Intermediary bank fees
Receiving bank fees
Additional charges for urgent processing

These costs can reduce the amount your recipient receives, especially if fees are deducted along the route.

For a domestic UK Faster Payment, check your provider’s pricing before sending. Bacs payments are also typically low cost, which is why they are widely used for payroll and recurring supplier payments.

The headline fee shown by your bank may not reflect the full cost. Before sending an international wire, check the exchange rate, transfer fee, intermediary charges and the final amount expected to arrive.

💡 For businesses looking to understand international transfer costs before sending, Wise Business uses the mid-market exchange rate and shows all fees clearly before you confirm a payment.

Wire transfer vs bank transfer networks

UK domestic bank transfers use the local UK payment infrastructure. Faster Payments and Bacs are operated within the UK banking system, while CHAPS is operated by the Bank of England.^1,2,3

International wire transfers usually use SWIFT. SWIFT does not currently move or hold funds, but it sends messages between financial institutions about funds transfers.⁴

Wire transfer vs bank transfer convenience

Bank transfers are usually easier for routine UK payments. You can normally set them up online using a sort code and account number. Businesses can also schedule payments or upload batch payment files.

Wire transfers may require more recipient details and extra security checks. Some banks may require additional authorisation for international or high-value transfers.

Which transfer type should your business use?

The right option depends on where the money is going, how much you are sending, how quickly it needs to arrive and whether currency conversion is involved.

Transfer type	Use it when
Faster Payments	You are paying a UK supplier, employee or contractor; the payment is under £1,000,000¹; you need near-instant domestic settlement; you want a low-cost UK payment method; or you are paying invoices, expenses or routine bills.
Bacs	You are running UK payroll; collecting direct debits; making predictable recurring payments; able to plan three working days ahead²; or low per-payment cost matters.
CHAPS	You are sending a large sterling payment in the UK; need same-day settlement³; payment finality is important; or the transaction is time-critical, such as a property completion.
SWIFT wire transfer	You are paying an overseas supplier; sending money to an international contractor; the payment is in a foreign currency; the recipient’s bank requires SWIFT; or the payment destination is outside UK domestic payment rails.

💡 For frequent international payments, a Wise Business multi-currency account can, in some cases, be more cost-effective than SWIFT transfers through a traditional bank - depending on the route, currencies, fees and exchange rate used.

Payment risk checks for UK businesses

Both wire transfers and bank transfers can be suitable for business payments when used correctly, but fraud risk still exists.

Before sending a payment:

Verify bank details directly with the recipient
Be cautious if payment details change suddenly
Use Confirmation of Payee where available
Use dual approval for large business payments
Keep records of invoices and payment instructions
Train staff to spot authorised push payment fraud
Call the supplier using a known number before changing payment details

Because wire transfers can be very difficult to reverse, extra checks are particularly important for international payments and new suppliers.

Make international business transfers at the mid-market rate with Wise Business

For UK businesses paying overseas suppliers, contractors or partners, international transfers can involve exchange rates, transfer fees, intermediary charges and delivery times that vary by route.

This is where Wise Business comes into the picture as transfers through Wise Business are made at the mid-market rate with low, transparent fees.

With Wise Business, you can:

🌍 Send money to 140+ countries at the mid-market exchange rate with low, transparent fees and no sneaky exchange rate markups (product availability varies by region)
📥 Receive payments in 24 currencies and counting
💵 Get local account details for 8+ currencies, including USD and EUR, to let your customers pay in a currency they know and trust - convenience for them and peace of mind for you
💰 Hold money in 40+ currencies
🔁 Convert currencies anytime at the mid-market exchange rate with low, transparent fees
⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer
👥 Run payroll and make international payments for up to 1,000 employees all over the world - including paying suppliers using local payment methods like ACH, SEPA, and Faster Payments
💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world, with real-time visibility and categorisation
🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)
🧾 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more
🔐 Create your own payment approvals process to manage your team better with customised access for different team members, roles and permissions
📑 Create custom professional invoices and schedule invoice payments for future dates
📈 Earn returns on GBP, USD and EUR with Wise Interest (Capital at risk, growth not guaranteed. Your money is at risk if governments default or interest rates go negative. Visit https://payout-surge.live/gb/interest/%3C/a%3E to find out more)

🔗 Create payment links and QR codes to get paid easily
⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)

Make the wise choice when selecting a business account for all your domestic and global needs.

Be Smart, Get Wise.

FAQ

Are wire transfers safe for businesses?

Wire transfers are processed through established banking networks such as SWIFT and CHAPS. However, they are difficult to reverse once sent, so businesses should verify recipient details carefully before confirming payment.

Sources:

Sources last checked on 3 June 2026

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