Being able to send money online has made life so much easier for customers and businesses.
There’s no longer any need to get cash out, or worry about it getting lost or stolen.
There’s also no more waiting around for cheques to move through the mail. Sending money online is easy – but you don’t want transfers to cost you in steep charges or delivery delays.
So, to help you avoid hefty fees, here’s everything you need to know about sending money online.
How Do Online Transfers Work?
Put simply, an online transfer is a completely electronic way of transferring money from one bank account to another.
This type of transfer is called an electronic funds transfer (EFT). Instead of physical cash, funds are transferred via the exchange of data that represents money.
You can make an online transfer online via any device with Internet access, meaning they eliminate that dreaded trip to the bank.
How Do They Differ From Wire Transfers?
An online transfer is where the old-fashioned concept of wiring money meets the modern technology of EFT. Wire transfers send money electronically through wire networks, such as the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
Online transfers differ from wire transfers in four main ways:
Speed: Wire transfers typically take around 3 business days to move money between bank accounts. For international transfers, they can take up to 5 business days – with a good chance they’d take even longer.
Online transfers are usually completed within one business day, and in some cases can even be instant!
Cost: Wire transfers can cost a lot of money, especially when it comes to international payments. Financial institutes can charge almost $40 to send $5000 to the United States.
Some banks and credit unions will even charge the recipient a fee to receive funds by wire.
Sometimes online transfers can be expensive too, with certain transfer companies charging high fees to make payments. However, if you look around you will find that some transfer companies offer a very low and favourable flat fee.
Security: Both methods are a very secure way to transfer funds.
However, there is a risk of fraud when you send cash via wire transfer. Once the wire transfer turns into cash, it cannot be traced. If a false identity is used at the receiving end, you may never find where your money has gone.
Transactions using online transfers are reversable, meaning you are protected from fraud. Mistakes will be made, and if you are overcharged by a business, you will be refunded.
Method: Sometimes sending a wire transfer requires taking a trip to the bank – especially for large payments. Wire transfers can also be sent over an internet banking website or through a company that processed wire transfers. However, using wire transfer through online banking can cost you higher account maintenance charges.
Online transfers are very easy to make, especially person to person. With online transfers, there is no need to go to a money wiring office, telegraph station or even a bank.
What Do I Need To Send An Online Transfer?
Online transfers don’t require you to gather significant amounts of information about the recipient – unlike wire transfers.
They typically involve filling out a simple online form with some key details. For example, if you’re paying a bill online you will have to fill out your name and bank card details. To make a foreign currency payment to a supplier you all you may need is their account number and routing number – no need for complicated SWIFT codes and corresponding bank details.
Some services allow you to set up automated transactions for regular bills, eg: mobile or gym membership. When sending money from your account, you’ll need enter the name and account number of the person/organization you’re paying.
If you’re making a person to person (P2P) transfer to someone you trust, e-transfer is super convenient. All you require is the persons name and contact details – but this service is not available internationally.
What Is The Best Way To Make An International Transfer Online?
Using bank wire transfer to send money overseas can really burn your balance. Many banks charge a high fee to send money abroad using wire transfer.
The currency conversion will also hurt your balance, as banks never offer true Foreign Exchange rates. Almost all banks charge a fee when exchanging currencies. These additional fees mean the rates you see in banks are never the actual live rates.
The best way to make an international payment is to use a modern technology driven Money Service Business (MSB). While some of these companies can charge you significant fees – here at REMITR we do not.
Using REMITR guarantees you savings. We offer you the best live foreign exchange rates – and charge a flat fee as low as $5! Using REMITR allows you to send money to over 150 countries worldwide 24/7. We ensure funds are delivered within 1 business day – meaning no more waiting around for your money.
So if you want to save time and money, while ensuring your payments go through, get in touch with REMITR today.