3

Domestic wire transfers are typically free in France: example (mirror).

Domestic wire transfers cost around 20 USD in the United States: see below for some examples, taken from nerdwallet (mirror)

Why are domestic wire transfers free in France but cost ~20 USD in the United States?

enter image description here

  • Why are prices for things different in different places? It's because that's what the market will bear...... – quid May 25 '17 at 23:53
  • 1
    @quid There could be other explanations such as regulations, banking system infrastructures,… If you think this is just because that's what the market will bear you're welcome to convert your comment into an answer. – Franck Dernoncourt May 26 '17 at 0:10
  • Why does a dog lick himself? Because he can. – WGroleau May 26 '17 at 15:56
  • @WGroleau Many other factors may explain why a dog licks, e.g. skin irritations. Did you read the existing answer? – Franck Dernoncourt May 26 '17 at 22:53
6

Because US banks would rather use (free) ACH instead.

From https://www.nerdwallet.com/blog/banking/ach-transfers/ (mirror)

Delivery of ACH transfers can take several business days, meaning days that banks are open. Unlike the real-time processing that wire transfers have, ACH network operators process transfers in batches only three times a day. […]

ACH debit transfers, including payroll direct deposits and most bill payments, are typically free. If you need expedited bill payments, there can be fees. For ACH credit transfers, banks might charge a fee of around $3 for sending money between accounts that you have at different banks, but many offer these so-called external funds transfers for free. There’s usually no fee to receive them."

From http://www.finance.umich.edu/node/2149 (mirror):

A wire is a real-time method of transferring immediate funds and supporting information between two financial institutions and is relatively expensive to use. An ACH is similar to a wire transfer only it uses a batch-process. Transactions received by the bank are processed in batches and funds are not available in the beneficiary account until the next business day. ACH transfers are less expensive than wire transfers.

  • Good point, but can you cite a source? – Michael May 26 '17 at 0:30
  • @MichaelC. nerdwallet.com/blog/banking/ach-transfers (mirror)"ACH debit transfers, including payroll direct deposits and most bill payments, are typically free. If you need expedited bill payments, there can be fees. For ACH credit transfers, banks might charge a fee of around $3 for sending money between accounts that you have at different banks, but many offer these so-called external funds transfers for free. There’s usually no fee to receive them." – Franck Dernoncourt May 26 '17 at 0:32
  • 1
    Thanks for the answer. Interestingly, "wire transfers" in France are in fact more similar to ACH transfers in the USA, in the sense that "wire transfer" in France also take some time to be executed, just like ACH transfers in the USA, and unlike wire transfers in the USA. The difference of execution time may explain the difference of price. – Franck Dernoncourt May 26 '17 at 0:36
  • At my Dutch bank, I can do a regular transfer for free, or an "urgent transfer" for a (variable) fee. I've always had regular transfers arrive within the same business day so I don't know when I would use "urgent", but perhaps those "urgent" transfers are more comparable to US wire transfers? – gerrit Jun 16 '17 at 9:18
  • Do ach transactions really take days to clear? – Ted Taylor of Life Sep 19 '17 at 10:19

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.