Which type of transfer is an electronic transfer of funds with a typical speed of 1 day or less and a fee of $15 to $25?

Which type of transfer is an electronic transfer of funds with a typical speed of 1 day or less and a fee of $15 to $25?

• A. ACH transactions
• B. Debit Card Purchases
• C. Cashier's Checks
• D. Wire transactions

Answer: (D)

Wire transfers are electronic transfers between banks that are typically completed within one day and usually incur a fee in the $15–$25 range. This combination of fast settlement and modest, standard fees is characteristic of bank-to-bank wire services, which are designed to move funds quickly on a single day basis, often for both domestic and international moves. ACH transfers are also electronic, but they generally take longer—usually 1 to 3 business days—and fees are often minimal or none. Debit card purchases are payments processed instantly at the point of sale, not transfers between banks. Cashier’s checks are issued by a bank as a paper instrument rather than an electronic movement of funds, so they don’t fit the described scenario. So, the type described by the speed and fee is wire transfers.

Wire transfers are electronic transfers between banks that are typically completed within one day and usually incur a fee in the $15–$25 range. This combination of fast settlement and modest, standard fees is characteristic of bank-to-bank wire services, which are designed to move funds quickly on a single day basis, often for both domestic and international moves.

ACH transfers are also electronic, but they generally take longer—usually 1 to 3 business days—and fees are often minimal or none. Debit card purchases are payments processed instantly at the point of sale, not transfers between banks. Cashier’s checks are issued by a bank as a paper instrument rather than an electronic movement of funds, so they don’t fit the described scenario.

So, the type described by the speed and fee is wire transfers.