HOW TO MAKE MONEY TRANSFER?

Money transfer is a convenient and secure way to move funds between accounts. However, costs and speed vary.

Determine what your needs are before deciding on the best option for you. Options include online transfers, a mobile payments app, and remittance services like Western Union. Some methods may require the recipient's name, account number, and route number, while others, such as Zelle, only need a recipient's email or phone number.

ONLINE

Online money transfer lets you move funds from one bank to another using the Internet. These transactions are typically cheaper than wire transfers. They are also fast. However, it's important to use secure platforms and follow security protocols. These include using strong passwords, avoiding public Wi-Fi, and enabling 2FA on your account. You should also monitor your bank account regularly to identify suspicious activity.

Knowing the recipient's bank details, including its ABA or routing number and IFSC code, is helpful when transferring money online. This will ensure your payment reaches its intended destination. Also, you should check the exchange rate and fee markups to determine how much your recipient will receive in their currency.

You can send money to friends and family for free by transferring funds between your accounts at different banks within the same financial institution. This is typically done via your bank's website or app. You can also use peer-to-peer payment services such as Cash App, Zelle, PayPal, and Venmo.

PHONE

You can send and receive money via a digital payment service that uses your mobile device. For example, Apple Wallet lets you pay others with a finger tap or voice command to Siri. Some providers charge a fee to make these instant transfers.

Other services offer a way to transfer funds with short text commands specific to the provider. Typically, the sender registers online and provides an email address, driver's license, or other government-issued ID. After the registration process, the recipient is given instructions on claiming the funds. The funds are deposited into an account linked to the recipient's mobile phone number or, with some retailers, charged directly to the wireless bill1.

Most mobile payments and bank apps feature a secure login process with fingerprint or face-recognition technology to protect your personal and financial data. Also, these services usually encrypt your information to prevent hackers from accessing it.

PAPER CHECK

Paper checks can be a secure way to transfer funds. They offer security because the sender can require a signature to validate the payment. This prevents fraudsters from stealing the payment details or changing the dollar amount. It also keeps the banking information private, which may be important for employees uncomfortable giving their banking credentials to a business.

An eCheck is an electronic representation of a traditional paper check. It contains the same payment information as a paper check: the bank account number, routing number, and payment amount. It is sent through the Automated Clearing House (ACH) network, which operates in the United States and other countries.

ACH payments are the most secure money transfer. However, they can take longer to process than other payment methods like a direct deposit or credit card payment. That can be frustrating for vendors who rely on timely receipt of funds to cover expenses.

CASH

For some, the best way to send money is in cash. You can do a wire transfer, but you'll typically pay upfront at your bank for the transaction. A wire transfer passes information between banks about the recipient, the bank receiving account number, and the amount transferred through a secure system.

Unlike other options, you can't cancel the wire transfer once it's completed. That's why it's important to check with the company you use to ensure they follow proper procedures and can help you resolve any issues.

CONCLUSION

Many online payment services such as PayPal, Venmo, and Cash App don't require you or your recipient to have a bank account. You can also purchase money orders at the post office, Western Union locations, and some Walmart stores. These options take up to three business days to show up in your bank account and may incur fees.