What’s the difference between a wire transfer and the one-time transfer I normally send?
Standard transfers on M1 are ACH transfers which are processed using the Automated Clearing House network.
While ACH transfers require little more than your account and routing number, wire transfers are more manual in nature, requiring more information and security checks before processing.
Understanding some of the other key differences between ACH and wire transfers can help you make the best decision for moving your funds.
While different banks, organizations, and associations have their own ACH transfer limits and guidelines, wire transfers are universal and do not have an upper limit on the amount of funds that can be sent.
Why would I use a wire transfer?
Wire transfers are typically used to move funds in excess of an institution’s ACH limits, when paying for a large purchase, or when attempting to complete a purchase that requires payment to be made using a wire transfer.
At M1, we have the following ACH limits
M1 Invest and Crypto:
- Daily ACH transfer limit of $50,000.
M1 High-Yield Savings:
- Daily ACH transfer limit of $50,000.
- Daily ACH transfer limit of $10,000.
What are the processing and posting times
A wire transfer can take 2-5 business days to be processed. However, when documents are submitted and your wire is initiated, it will complete within the same business day if processed before the cutoff time.
Daily cutoff times for wires:
Wires from Invest accounts
- 12pm CST
Wires from Savings Accounts
- 3pm CST
Unlike ACH transfers, wired funds can be accessed as soon as they arrive at the receiving account, without an additional settlement period.
Wires may be preferred for those who need to process a transaction faster than an ACH transfer.
Learn more about M1 transfer timing.
What would happen if funds were wired somewhere that only accepts ACH transfers?
If the receiving bank rejects the wire transfer, the funds will ultimately be returned to the original account. Typically, you can expect a rejected wire to be returned within 2 business days of the original transaction.
Will I receive confirmation once my wire has gone through?
Our support team will send an email notifying you once we receive confirmation that the wire is complete.
Outgoing wire transfers to an external bank account can take up to 1 business day to be reflected.
Why was my wire transfer rejected?
Incoming wire transfers that are initiated into M1 without approval from our team will be rejected and sent back to the originating institution.
For outgoing wire transfers, if receiving bank wire instructions aren’t provided correctly the wire may be rejected on the receiving end. The receiving institution might also charge fees for the rejected wire.
What must be submitted to M1 Support before a wire transfer can be completed?
For outgoing wire transfers, please submit the following:
- Wire transfer form (form provided once you reach out to the support team)
- Includes amount, account and routing numbers, names, and signatures.
- Receiving institution’s wire instructions
- Reason for wire transfer
Once the wire transfer documents are submitted correctly, the wire transfer will be completed within the same business day.
For incoming wire transfers, review the following instructions:
Is there a minimum or maximum amount that I can wire to or from an M1 account?
If you are looking to transfer less than $10,000, please do so via an ACH transfer. Click here to initiate an ACH transfer.
If you are looking to transfer more than $10,000, you may do so via either an ACH transfer or a wire transfer. If you need special assistance with a wire transfer, please contact us.
Will I be notified if there are any issues with my wire transfer?
If your wire transfer is not completed correctly, a member of our team will reach out to update you on the issue and when the transfer will go through correctly.
If it has been 3 business days since you initiated your wire transfer or sent us wire transfer documents please reach out to us.
Security and Tracking
While both ACH transfers and wires offer a layer of security that paper checks don’t, there are some important points to consider.
ACH transfers can be stopped or reversed, while wire transfers are final once submitted.
If wired funds are posted incorrectly or fraudulently, the receiving institution has no obligation to return them.
Like ACH Trace IDs, wires can be tracked to ensure that they’re received by the intended account; this is done using FedWire Reference, IMAD, and OMAD Numbers.
A FedWire number is a type of tracking number used to trace a wire transfer. In addition to FedWire Reference Numbers, Input Message Accountability Data (IMAD) Numbers are generated when a wire transfer is sent from an institution for a wire transfer. Conversely, Output Message Accountability Data (OMAD) Numbers are generated when a wire transfer is received by an institution
IMAD/OMAD Numbers are composed using YYYYMMDDABCDXXXX#####
- Wire transfer date (YYYYMMDD or MMDD)
- Source identifier: 8 Alpha or Alpha-Numeric characters (ABCD)
- Sequence number: trailing 6 digits
After the funds have been wired, M1 or your bank will be able to provide a receipt that provides you with the FedWire, IMAD, and OMAD Numbers for your wire transfer.
Can I wire funds internationally?
M1 only offers domestic outgoing and incoming wire transfers right now. International wire transfers must be routed to a bank account that can accept them, and then routed to an M1 account.
When should I use a wire transfer versus an ACH transfer?
Consider the differences listed above and ask yourself the following questions:
- Am I certain this transaction is legitimate?
- Do I have all the correct payment details?
- How much money am I sending?
- How quickly do the funds need to arrive?
These questions can help you decide which transfer option is best for you.
How do I create a wire transfer?
Check out our article on how to create a wire transfer to get started.
If you're still unsure, we’re happy to talk through your options and help you make the decision that’s best for you.