Wire transfers are often used for large, time-sensitive payments and cross-border deals in New Zealand (NZ), where they’re called “telegraphic transfers.”

For companies doing business in NZ, there’s many different aspects to understand about wire transfers, including how local banks handle domestic and international transfers, where POLi and standard account-to-account payments fit in, and how routing and foreign exchange (FX) impacts payments.

Below, we’ll explain how wire transfers in NZ work, when they’re the right tool, and what to know before you send one.

What’s in this article?

• What is a wire transfer in NZ?
  
• How do wire transfers work in NZ?
  
• What are the main use cases for wire transfers in NZ?
  
• What are the differences between wire transfers and other electronic payments?
  
• How do FX fees and bank routing affect wire transfers?
  
• How Stripe Payments can help
  

What is a wire transfer in NZ?

A wire transfer is a direct, bank-to-bank payment. They’re fast, secure, and final; once sent, they can’t be reversed. That’s great for certainty, but risky if you mistype a number, because there’s no undo button.

To send a wire transfer, you give your bank the recipient’s details. The bank deducts the money from your account and sends a payment instruction to the recipient’s bank, often over the SWIFT network. Once it clears, the money becomes available to the recipient.

Domestic payments in NZ are usually referred to as bank transfers or direct credits, not wire transfers. The term telegraphic transfer is more common for international wire transfers.

How do wire transfers work in NZ?

NZ’s banking infrastructure handles wire transfers a bit differently than some other markets. Here’s how wire transfers move, what they’re called, and what happens behind the scenes in NZ.

International wires

Banks in NZ call international wire transfers a telegraphic transfer or a SWIFT payment.

To send money, you’ll need the recipient’s:

• Full name and address

• Bank name and address

• Account number (or IBAN, depending on country)

• SWIFT/BIC code for their bank

Some destinations also require a local routing number, such as an ABA or sort code.

You’ll initiate the wire through your bank, typically via online banking or your business banking platform. Then you’ll input payment details, choose the currency, and review the exchange rate and fees before confirming. Expect to authenticate the transaction with a code or token before it goes out.

International wires typically arrive in 1–3 business days, with some transfers landing sooner. Less common currencies can take longer. Once submitted, your bank provides a reference number (often a SWIFT confirmation), which you can share with the recipient for tracking.

Domestic transfers

NZ doesn’t really use the term wire transfer for local payments. Instead, they’re called bank transfers, direct credits, or bill payments. POLi and account-to-account transfers are common methods of moving money domestically in NZ. These payments run on Bulk Electronic Clearing System (BECS), the same system that clears interbank transactions in batches in Australia. Historically, that meant overnight delays or no movement on weekends, but most NZ banks now process domestic transfers seven days a week, often every hour. A payment sent at 2 p.m. New Zealand Standard Time (NZST) usually lands within the hour; even weekend payments tend to move the same day.

What are the main use cases for wire transfers in NZ?

When the payment is large in size, timing is essential, or payment crosses borders, NZ businesses often turn to wire transfers.

Wire transfers are most commonly used by NZ businesses for:

• Large, time-sensitive payments: Property settlements, asset purchases, and big-ticket invoices often move via wire transfer. They need to clear on time, in full, with no bounce risk.

• Cross-border transactions: When paying overseas suppliers, wiring funds via SWIFT is often the cleanest path. Exporters also receive inbound wires, especially in NZ dollars or US dollars, from international partners.

• Intercompany funding: Businesses with operations abroad use wires to fund offshore subsidiaries or settle intra-group balances. Venture capital firms and corporate investors use them to fund rounds or distribute capital.

• Regulated payments: Some tenders or agency payments require a wire transfer for proof. Wires are also standard when the receiver wants funds cleared before goods or services are released.

What are the differences between wire transfers and other electronic payments?

Wire transfers and electronic payments such as POLi all move money electronically, but they’re built for different jobs. The right one depends on who you're paying, how fast it needs to land, and how much control you need.

Here’s how they differ.

Wire transfers

Wire transfers are best for cross-border, large, or urgent payments. They’re final and irreversible. The transfers routed via SWIFT are used by default when paying overseas suppliers or moving capital internationally. The cost is often about $5–$25 NZD per transfer.

Account-to-account transfers

Account-to-account bank transfers cover many day-to-day needs, such as paying staff, suppliers, and taxes. Generally, these transfers are used for low to medium-value domestic payouts. They move through NZ’s BECS or High Value Clearing System (HVCS) systems and settle the same day or faster, within an hour. They’re typically free for both sender and receiver. All you need is the recipient’s standard NZ bank account format.

POLi

POLi is an online payment system that optimizes for speed and convenience in ecommerce. It’s best for collecting online payments from NZ customers who don’t want to use a card. POLi has lower fees than card payments, but it only works domestically in NZ. It sits on top of online banking: POLi logs in and initiates a transfer on the user’s behalf, and businesses get immediate confirmation. Funds clear via the normal bank networks.

How do FX fees and bank routing affect wire transfers?

Two factors make the biggest difference when sending money overseas: currency conversion and how your payment is routed.

Here’s what you need to know.

FX margins

When your bank quotes an exchange rate, it usually includes a margin of 2%–5%, depending on the currency and your relationship with the bank. On a $50,000 NZD payment, that can mean $1,500 NZD in costs from the conversion math. You can sometimes negotiate better rates if you're sending high volumes.

Bank routing

Cross-border payments move through correspondent banks, which are intermediaries that help reach banks in other countries or currencies. Each hop can deduct a small fee before the payment lands. The route depends on the currency. Common corridors (NZD to AUD, NZD to USD) are often fast and direct, but less common currencies can involve more banks, which adds time and cost.

Who pays which fees?

Many banks let you choose how overseas charges are handled.

Here are the different opinions:

• SHA: You pay your bank’s fee, and the recipient covers theirs.

• OUR: You cover all fees, so the recipient gets the full amount.

• BEN: The recipient covers everything. This is rarely used in business.

If you want the recipient to get the full amount, you’ll need to select OUR when sending and absorb any foreign bank charges. Otherwise, fees could be deducted on their end, often without warning.

How Stripe Payments can help

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