Whether your child at a university far from home needs money for his books, or you need to split bills amongst friends, sending money has become an easy and fast process today. With a constellation of transfer methods and apps available to choose from, the task may become confusing. Here are some of the cheapest and most convenient ways to send money online.
Here are the cheapest ways to send money online
In response to the demands of customers, most service providers have to keep innovating to stay afloat. Today, the large majority offers online services to enhance customer satisfaction.
Online wire transfers
A wire transfer is a convenient and safe option. Money may be sent from a bank account to another person, business or financial institution locally or internationally. With the online option, transferring funds has become quicker and easier, blending seamlessly the convenience of online banking with the efficiency of usual wire transfers. Wire transfers can be made through Internet Banking and the process is straightforward, requiring the sender to fill a form. Note that you need to know the recipient’s banking information such as his exact full name, his address and bank account number. You will also need the recipient’s bank ABA Routing Number or SWIFT Code as well as its name and address.
Wire transfers are not free of charge. A fee is generally charged for every outgoing transfer. Even if wire transfer requests may be completed at any time online, the processing time varies depending on the actual business hours. An online wire transfer not only allows the sender to initiate a transfer, but also allows him to schedule transfers after hours for processing the next business day, and check the status of the wire transfers as well from the ease of a computer. The number of online wire transfers is generally unlimited.
Online wire transfers are not only flexible but secure as well. Security features may include Login credentials, Dual Authorization for businesses, or Enhanced Account Protection for individuals and businesses as well.
Online money transfer services
Recipients who do not have a bank account or prefer to pick up cash may find money transfer services such as the Western Union or MoneyGram ideal. The fees are however higher than wire transfers but when the latter option is not possible, money transfer services are the next pick.
Most money transfer services today offer online options. Users can opt for sending money through the website, or through their mobile app. Services are generally available 24/7. The options are varied; the sender may pay with a bank account or with his debit or credit card, while the receiver may receive the money at an agent location within some days, money may be sent to a mobile phone where mobile money transfer service is available, or to a bank account itself. Large sums of money may also be sent through a foreign exchange service by the Western Union, for instance. Inmates may likewise receive money in their trust account.
Registration to the online services of money transfer providers is generally free. The sending processes are convenient and quick.
Internet payment services
The money transfer industry has been disrupted by the sprouting of tech startups and internet payment services. Users find this type of services very user-friendly as they can be linked directly to a debit or credit card. To stay ahead of the curve and attract clients, most of the Internet payment services have developed robust security systems and privacy policies. Users do not have to worry about their sensitive data being stolen or compromised as all the payments are made by reputable third parties.
The most popular online payment services are:
With just a few clicks, money may be sent or received. To create an account, users simply have to link an email account that will be their reference for sending and receiving money. PayPal accounts may are linked to certain bank accounts for transfers. A percentage of the sum transferred is deducted in the money being received.
Venmo is a popular online payments app, working on both iOS and Android platforms. If money is sent from a debit card, the transfer is free. Transfer from credit cards nevertheless entails a fee. It is owned by PayPal.
Square Cash works in a similar manner as Venmo. The app, available for iOS and Android platforms, requires an email address and the account needs to be linked to either a credit or a debit card. Transactions are free for individuals but a fee is applicable for businesses.
Google Wallet is currently available only in the United States for iOS and Android. It may be linked to a bank account or money may be transferred from the Google Wallet itself. It is similar to PayPal but additionally, payments may be sent as attachments through e-mails. The use of debit cards entails a fee.
Xoom is another PayPal service. Partnering with multiple banks, it allows money to be transferred to a bank account. Else, door-to-door delivery, as well as cash pickups, are also available.