Technology has transformed several aspects of modern life in post-industrial countries. Money and payments are no exception. Electronic transmissions have largely replaced paper checks as a form of payment for both consumer and commercial financial transactions. Although direct deposits and wire transfers are two forms of electronic transactions that share similarities, they serve different functions.
Wire Transfer Scams
Many wire transfer operations are actually scams designed to separate victims from their money. The scam artists may request that you deposit a check from them in your bank account, and wire them the cash to cover the check. Other scams involve pleas for money from individuals with whom the victim has formed an online romantic relationship, online "vacation rental" services or sellers who insist on payment by wire transfer. However, a wire transfer is like cash -- once you have initiated the wire transfer, it is nearly impossible to cancel the transaction or to get your money back.
- Financial Management Service: Direct Deposit; March 2011
- Bankrate: Direct Deposit -- How It Works; August 2006
- Bankrate; Anatomy of a Check; Laura Bruce; August 2006
- Social Security Online: Direct Deposit Enrollment Outside the U.S.; January 2008
- Money Matters: Wiring Money
- Bankrate; Wiring Money Is Convenient, But It Can Be Slow and Costly, Too; Libby Wells; October 1999
Chris Blank is an independent writer and research consultant with more than 20 years' experience. Blank specializes in social policy analysis, current events, popular culture and travel. His work has appeared both online and in print publications. He holds a Master of Arts in sociology and a Juris Doctor.