Technological advancement in the banking sector has led to mobile banking, Internet Banking, and App-based banking, serving as an alternative to liquid banking, aka cash banking. Back in the old age, sending money to friends and family was majorly through checks or cash, but with the rise of digital banking services sending money has become more accessible and convenient than ever before.
However, for brick and mortar financial institutions, there are many fees involved, such as insurance fees, rental fees, human personnel fees, and so much more. Ultimately, these costs get shifted down to the consumer hence making the transaction charges costly. On the other hand, sending money online doesn’t incur such costs and usually happens virtually; thus, the benefits get spilled over to the consumer in the form of low transaction fees.
Moreover, it would help if you understood how to transfer money from one card to another online since it’s much cheaper for bill payments and purchases. The card-to-card has been in existence for a couple of years. It is an initiative championed by Mastercard and Visa with a massive investment in money transfer infrastructure nationwide and internationally. This idea has contributed significantly to a convenient, speedy, and secure way to move funds across multiple countries.
What Is Online Money Transfer?
Online money transfer refers to the processing of sending money instantaneously through transferring data that represents a cash amount. However, this process involves no paperwork and is time-saving and reliable.
For instance, you can use your debit card to transfer money from your checking account or direct deposit payrolls into employees’ accounts, and all these transactions involve online money transfers. When sending money using the online method, there are some details required for both the sender and the recipient.
Moreover, the online money transfer company then performs the transaction at a low fee using a secure web-based platform. When the transaction gets accomplished, the recipient receives an alert of the same transaction from your service provider.
Your card can send money from one debit card to another or move money from one credit card to another in the form of balance transfers using the online money transfer method. All online banking transactions get processed by the Automated Clearing House (ACH), an independent agency that provides secure financial data transmission.
How Do You Secure Your Online Transactions?
- Use a reputable company when using online money transfer services, as not every company can provide a secure platform.
- Ensure you create strong passwords since cracking a password is the easiest way to attack an online account.
- Avoid using public WIFI to perform transactions. Also, be vigilant about random emails and forms asking for your password.
- When accessing your account using a mobile phone, use your card issuer’s App instead of accessing their site through a browser, as this exposes you to several threats.
- When securing your transactions, you must keep a close watch on your online activity. This move allows you to spot any irregular account activities and control your risk.
Benefits of Transferring Money from One Card to another Online
You can still send money to another person either by check or by allowing a bank to handle the fund transfer for you. Besides, these are even suitable options, but online transfers come with considerable benefits to both the sender and the recipient. Such as;
i) Pay Bills Online
Another incredible feature of online money transfers is bill payment. Instead of having to fill in forms and mail checks, you can settle your bills at the comfort of your mobile device. You can also make your bill payment automatic such that it no longer needs action from you. Additionally, online bill payment enables you to have one referral source for all your bills to monitor your expenses and work out a reasonable budget.
ii) Speed and Efficiency
For a physical financial institution, you will have to travel to the institution and make a queue to get services such as all transactions involving sending money and having access to loans. On the other hand, the card-to-card transfer happens instantly anywhere at any time. You do not have to wait for service delivery; as long as you have a seamless internet connection, you can perform a transaction using your card.
Additionally, you can also get these services anywhere without the need for traveling. Unlike checks, which can last for a week to be received and processed, an online fund transfer gets initiated instantaneously. Besides, the transaction competition can occur a day or two, enabling you to make payments on time, evading incurring late fees and penalties for late bill payments.
iii) Security
When sending a check as a form of money transfer or bill payments, it can be perilous. Many uncertainties can occur between the recipient’s mailbox and your mailbox. Unfortunately, the check can get stolen or lost in the mail leading to a lengthy fraudulent recovery process.
These happenings can damage your reputation and inconvenience your creditors. It can also be stressful convincing someone that their checks got lost while in the mail. Thus, involving most of your financial obligation using cards can give you peace of mind. The process doesn’t include many procedures, and the money arrives on the recipient’s card on time.
iv) 24/7 Hour Service Delivery
Online money transfer services are available to you all round the clock. You do not need to encounter the inconveniences of waiting for official banking hours. For financial services that need urgency, you can settle the matter using a card to ease the transaction.
Interestingly, some card issuers have on-phone customer service support 24/7. Human personnel are quite helpful when you experience poor internet connectivity and other transactional issues requiring human intervention.
v) User-Friendly
The process of transferring money from card to card is straightforward and doesn’t involve a complicated process. You can easily navigate to perform the transaction without experiencing any difficulties. This interface results to speed and offers you an outstanding user experience.
vi) Wide Accessibility
Some prepaid, credit, and debit card companies have dense networks in other countries. This spread makes the transfer of money process either internationally or nationwide more direct and easier to execute.
Interestingly, most online money transfer providers have currency conversation tools that enable you to make conversions when moving money abroad. This tool allows for the flexibility to regularly track the rates and transfer money when they are friendly.
What Are Other Ways You Can Transfer Money Online?
There exist a lot of options when it comes to the subject of sending money online. Thus, numerous services enable you to perform personal payments online for free if you withdraw some funds from your bank account. However, sending money from debit cards linked directly to your checking account is usually cost-free. But, if you choose to use a credit card to fund a payment instead, you may incur a small fee.
Moreover, with several ways to transfer money electronically, the best option depends on your needs. The payment services are the suitable top option for sending money to another person online. Primarily, both the sender and recipient must have an account with the service provider. Below are some of the best options that include;
1) PayPal
Apart from paying for purchases, PayPal is also helpful for personal payments. Most people have a PayPal account, so they won’t have to sign up for a new service, link bank accounts, or create a new password every you send them money. You can transfer money online with a debit card, credit card, bank account, or PayPal balance. Most importantly, PayPal is usable all over the world by many consumers and business enterprises.
Moreover, you can link your bank account, debit card, or credit card, but paying with a debit or credit card involves a fee of 2.9% plus 30 cents. Unlike most services, PayPal allows users to send up to $60,000, though it varies depending on your account.
The biggest downside to PayPal is the fees it carries unless you link your bank account. Besides, linking your account to your debit card is a bit advantageous compared to other services, such as Venmo, due to the additional fee. However, the company is increasingly used more like a bank, and it can be worrying to hold a balance on your account since your funds are not FDIC-insured.
2) Cash App
Cash App, also known as Square Cash, enables you to transfer funds from one debit card to another. Your debit card gets charged, so the money will automatically come from your checking account indirectly, and your recipient will get a credit to their debit card.
Besides, this application allows you to move and receive money using your “$Cashtag,.” Cashtag is a unique screen name attached to a personal webpage where any person can pay you, even if they don’t utilize the App.
However, the difference is that the Cash App enables users to choose automatic cash out, which transfers the money directly to the receiver’s bank account. There is no need to select the option manually. The recipient can cash out money instantly for a 1% fee or wait for up to three business days for funds to get into a linked bank account.
Can You Transfer Money from a Bank Account To a Prepaid Debit Card?
One convenient way to add money to a prepaid debit card is to use an online transfer from a bank account. With all prepaid cards, bank transfers are free, plus the transfer can get initiated and completed online. However, several steps follow, and competing up the process can last a few days.
i) Have Account Number and Routing Number
The initial step is to acquire the bank account number and routing number involved with your prepaid card. However, each prepaid card has an issuing bank that’s usually unique from the card issuer.
ii) Link Your Prepaid Card to Your Bank Account
To move funds from your bank account to any other account, you must establish an external account attached to your bank. Following the basic steps through the process may vary from bank to bank.
- Log in to your bank account and go to where you can transfer money. Look for a place where you can set up an external account.
- Use the bank, account number, and routing number of your prepaid card to create an external account.
- If you experience difficulties, contact your bank to help you walk through the process.
iii) Conduct Test Deposits
Before you start the money transfer process to your prepaid card, your bank will likely need verification of two small test deposits to the account. Immediately the deposits reflect in your account; you can log into your bank account and put the amount of the test deposits.
The deposits prove that the external account has been successfully set up and that the transfers got received by your prepaid card account. Once this verification gets done, you can transfer money from your bank to your prepaid card.
iv) Transfer Money
Once your prepaid card gets ready with your bank, transferring money is simple. You need to navigate to the transfer page on your bank’s website and choose the amount you need to share, the account to move the money from, and your prepaid card account as the account to receive money.
Transfers usually take at least one business day, so it’s important noting that the money will not be accessible on your prepaid card immediately.
Bottom line
Sending money online, especially from one card to another, is fast, easy, and often inexpensive or sometimes free. The exciting bit is that you do not have to handle cash or fear it getting lost. Besides, you don’t have to wait for checks to pass through the mail.
The process is instant, with no need for meeting in person to exchange cash or checks. Additionally, you can move or receive funds from any time and anywhere around the globe.
