Money transfer refers to moving finances from one person to the other or from one company/organization to the other. The ability to move finances enables the growth of a country’s economy since people can buy and sell goods and services. It is possible to transfer money even overseas for various needs. Various financial companies facilitate the transfer of funds across the globe. We will look at the best money transfer company shortly.
Nowadays, it is easy to transfer funds online within minutes. The traditional money transfer options are slowly being replaced by instant electronic funds transfer services that you can do from anywhere and anytime. In the recent past, people relied on money transfer options such as money orders and checks. Today, you can send funds instantly using PayPal, Payoneer, and Skrill.
There are various reasons you may need to transfer money to other people. You may be working abroad and have left your family behind. In such a case, you have to transfer money back home after earning from your current job. Again, if you are buying an item from a different country online, you will need to send funds to the seller via the channels they trust. They then send your item via any of the international courier companies.
Some Ways To Transfer Money
There are various ways you can transfer finances to others. Let us look at each one of them.
i) Transfer money through a bank
You can send finances from your bank account to the account of someone one else within your bank or outside your bank’s branch. When sending funds to someone within the same branch as yours, you need to send money with the checking account number of the recipient. The transfer is usually fast and, in most cases, instantaneous.
However, when transfering money to someone in another bank or branch, you will need both the routing and account numbers. Transfers between banks can take longer to complete. You need to note that transfering funds using a credit union account happens the same way transferring the bank transfer occurs. There are two ways you can use it to transfer money across banks and credit unions. They include the following:
- Wire Transfer
- ACH Transfer
Wire transfers are usually immediate, and once you initiate a transfer, you may not be able to reverse it. Again, the transfer is suitable for large amounts of money. On the other side, ACH transfers occur via an Automated Clearing House (ACH). The ACH facilitates the transfer on behalf of the sending and the receiving institution.
It acts as a third party, and after processing the transfers, they forward the funds to the receiving bank. ACH transfers are more secure compared to wire transfers. You can easily cancel an ACH transaction since the funds stay pending for a few days.
ii) Use A Check
A check is a written and signed document that allows you to transfer finance to others. You can make payments using a check instead of giving them cash. When you write a check to someone or a company, they take it to their bank to deposit or cash out. Some apps, such as Venmo and Cash App, allow you to deposit a check online. Once you deposit your check, the funds move to the account you provide. You can also cash out and take the funds once the check is over.
Once a check is processed, funds move from the writer’s account to the target person’s account. A check is a convenient way of making payments since you can write it from the comfort of your couch. You require a checking account to be able to write checks.
iii) Use Payment Cards
You can transfer funds to someone else using payment cards such as debit cards, credit cards, or prepaid cards. When you shop online with your card, you usually transfer finances from your card account to the seller’s account. Also, you can transfer money from one debit card to another debit card online using an app.
That is possible if your card issuer allows you to manage your card online. Debit cards usually allow you to access your checking account balance. On the other hand, prepaid cards do not necessarily link to bank accounts. You recharge them online using a bank account or at a location.
You can send money using the card accounts online to others. Again, you can shop using the cards at various outlets. Credit cards allow you to borrow money from your card issuer. You then use the card to shop online. You transfer money from your card account to the merchant’s account electronically.
iv) Money Order
A money order is almost similar to a check, although it does not need you to have a checking account. You can visit a post office or a bank and buy it to send funds to someone. The document is usually printed with the amount you want to send, plus the recipient.
Unlike checks, whereby funds get out of your account once the processing is done for the regular checks, money orders require you to pay immediately when sending the funds to the target recipient. Once the recipient gets the money order, they take it to their bank to deposit or cash out.
v) Direct Deposit
The method is suitable when it comes to making payments to your employers. Government agencies and non-governmental organizations also use the method to send money to the beneficiaries. ACH transfer is an example of a direct deposit.
You have to fill out a direct deposit form to receive funds from the relevant source. Even though ACH transfers take several days to complete, you can accept ACH payments instantly through various companies.
List Of The Best Money Transfer Company
You can use various companies to transfer money across the world. The best ones in terms of funds transfer effectiveness include the following.
1) PayPal
PayPal is a prominent money transfer company that operates in over 200 countries. It operates online, and you have to create an account online and link a bank account or debit card to help you fund your transfers. You can send finances through PayPal using your phone in the following manner.
- Tap ‘Payments’.
- Select ‘Pay’.
- Enter the recipient’s PayPal username, name, email, or mobile number.
- Enter the amount to send.
- Choose the currency.
- Add a memo (optional).
- Tap ‘Next’.
- Choose how you want to pay.
- Tap ‘Next’.
- Choose “Friends and Family” or “Goods and Services”
- Tap ‘Next’.
- Confirm the transfer details and tap ‘Send’.
2) Western Union
Western Union is among the oldest money transfer companies globally that allow you to either send funds online or at a physical branch. An online money transfer is much more convenient. Upon creating your account, you can link your bank or debit card to your bank Western Union account to help you send money.
You can send funds to a recipient’s bank account or mobile wallet account or at a location. When sending online, you can follow the steps below.
- Log in to your account or register for free.
- Choose the country, the amount to send, and the delivery method.
- Enter your recipient’s name.
- Pay for the transfer with your card.
- Wait to get confirmation by email.
- Get the tracking number (MTCN), save it somewhere, and share it with your receiver for pick-up.
3) Remitly
The company allows you to send funds online faster and securely from various countries with great exchange rates and low transfer fees. It almost operates like Western Union, although it is cheaper. The platform also allows you to send money for pick-up at a location. You can send finances through Remitly in the following manner through their app.
- Sign in to the Remitly app.
- Select ‘Get Started’.
- Enter the amount to send.
- Next, choose your delivery method and enter the necessary details.
- Enter details about your recipient.
Remitly will notify the recipient once the funds arrive in their accounts.
4) Payoneer
Payoneer is one of the upcoming money transfer companies in the world. The platform allows you to send money online, whereby you need the email ID of the recipient to transfer funds. You can use the steps below to send money.
- Log in to your Payoneer account.
- Navigate to ‘Pay > Make a Payment.’
- Choose another Payoneer account. You can also choose a bank account.
- Enter the necessary details
- Review the details and click ‘Pay’.
With Payoneer, you should add a bank account to fund your transactions and also withdraw funds. To withdraw money from your Payoneer account to your bank account, you have to transfer money using the routing number and account number of the bank account.
Final Verdict
Money transfer refers to moving funds from one person/organization to another. Depending on your preferences and convenience, you can move money online or at a branch. Online transfer is the best since it is convenient, and you can make your transfer any time of the day.
Money transfer allows you to buy goods and services and send funds to your loved ones. You can send money using a bank, check, money orders, and direct deposit.
