When people get a large sum of money, like from an inheritance or winning a large bet or anywhere they got it from; people tend to get comfortable using wire money transfers. This is because they feel that it is a lot safer compared to just getting it from the mail. Others like the anonymity of getting it wired rather than mailed. When you are the one wiring the funds, you are to pay a fee that the bank asks for their services.
When you wire funds, it depends on the bank; how much they will charge you for wiring the said amount. It also depends on the amount of money and also the time when it will be received. The time the funds may be received could be instant, about 10 minutes, a day, or economy, about 2 to 3 days. It also depends on whether the wire transfer will be just within the United States or international. The location, whether it will be specific or just in an bank account, will also affect the cost of the wire transfer.
Usually wire transfers cost $12 for a $200 dollar transaction. This is 4% to 15% of the total fund transacted. When the funds being transferred increases, the cost of it also increases. Like in Moneygram, where they offer the cheapest money transfers, the cost for a $200 transaction is $12, but if you increase to $400 the fee will be $23 and if you transfer $800 the fee will be about $63.
There are also times that the wire transfer company does not charge the sender, but the recipient. This all depends on the policy of the service provider. Still, the cost would fall in 4% to 15% rate. An example is when you send $200 the recipient will receive $188, so if you want the recipient to receive exactly $200, send them $212. The additional $12 will be for the service provider fee.