The United States is a big country, and as many of us know, it is one of the world’s superpowers. There are various money transfer platforms that Americans use to move money from one place to another. Transferring funds among people is now on another level since people send money online using smartphones, tablets, and computers. Smartwatches are now allowing users to transfer money. But which are the online money transfer services in the USA?
We shall see online money transfers in the US later on. When using devices to move money online, you require an internet connection. Moreover, the Internet should be secure. A secure internet connection means an internet that does not allow intruders to access information about users of various online platforms. Public Wi-Fi are some of the insecure sites that allow hackers to steal money online from unsuspecting users. If you find Wi-Fi that allows anyone to access a connection, it is public Wi-Fi and it is insecure.
However, most money transfer services understand the challenge of online transfer services. Most of them use various layers of security to safeguard internet connection. For instance, financial companies use data encryption to ensure that data you input online is not accessible by third parties. Big companies, non-governmental organizations, and government parastatals also use data encryption to safeguard data.
About Money Transfer
Money transfer refers to the movement of funds from one person to another via various mediums. You can transfer money from one person to another online. Also, you can transfer money at a physical branch. There, you usually present cash over the counter, plus your identification documents.
If you have money in your credit or bank account, you must present your identification documents to the tellers to authorize the transaction. However, if transferring money online, you will need to log in to your account with your PIN or password to access the money. For example, when you transfer money from Chime to a bank account, you must log in to your Chime account to authorize the transfers.
Best Online Money Transfer Services In USA
There are various transfer services that you can use to transfer money online. They include the following:
Banks have been operating since time immemorial. There before, banks only operated at physical branches. When technology is advanced, banks began allowing online transfers to compete in the growing online money transfer market.
Online transfers in banks happen in simple steps as long as you have an internet connection. To transfer money using a bank, you have to follow the steps below.
- Log into your online account.
- Navigate to the money transfer section.
- Enter the recipient details.
- Enter the amount to transfer.
- Give your PIN, password, or Touch ID.
- Review the transfer details.
- Hit on send.
When transferring money from one bank account to another within the same institution, the funds reflect in the recipient account within a few minutes. You require the account number of the recipient. When transferring money from your bank to another bank, you need the routing and account numbers of the recipient.
Different Online Bank Transfers You Can Do
There are various kinds of online bank transfers that you can undertake today. They include the following:
i) Direct deposit: Best for early payments
You can receive money via direct deposit two days earlier than most traditional banks. Direct deposit allows you to transfer money from one bank to the other using various online transfer processes. If you want to make a direct deposit, you must transfer money using the routing number and account number.
Direct deposits are helpful to receive salaries and government benefits. Money arrives earlier compared to the normal process.
ii) Wire transfer: Best for sending $10,000 or more within the US
Wire transfers allow you to move money from one bank to the other instantly. The transfers attract some fees when moving the money. Wire transfers are fast when transferring money. However, they attract a lot of fees. Furthermore, they are not completely safe to undertake.
iii) ACH transfer: Best for safe transfers
ACH transfers allow you to move money across various bank accounts. For example, when moving money from Chime to Wells Fargo, you may need to use the direct transfer option. Direct transfers are safe but usually take longer to complete. You can carry out an ACH transfer both domestically and internationally.
ACH transfers are easy to cancel compared to wire transfers. Also, they are safer than wire transfers as they have to undergo processing at the clearinghouse.
2) Credit Unions
Credit unions are financial companies that members with a common bond form. Common bond here means sharing the same kinds of jobs, living environment, same religion, and so on.
You can use the same transfer process just like you can do with a bank.
3) Mobile Wallets
Mobile wallet refers to online platforms which are not banks nor credit unions. Mobile wallets allow you to transfer money between account holders of the same institution. There are various mobile wallets that you can use to transfer money. They include the following:
1. PayPal: Most popular online
The PayPal is best online money transfer services in USA and worldwide. PayPal allows you to move money from one account to another. It is free to transfer money from one PayPal account to another. PayPal is an international company and thus allows you to transfer money to people in other countries. You can also move money from your PayPal account to your bank account.
2. Payoneer: Best for a debit card
Payoneer is easy to use and operates online, just like PayPal. You can transfer money from one Payoneer to another Payoneer account instantly. Even though Payoneer allows you to transfer money from your account to another Payoneer account, some countries might have restrictions.
3. Venmo: Best for mobile
Venmo is a payment service from PayPal. It operates in the US, and users can use it to pay bills. You can split bills with your colleagues in restaurants and movie theaters. Venmo does not support money transfers to PayPal, despite being a PayPal service.
4. Cash App: Best for the referral bonus
Cash App is also a mobile money wallet that allows you to transfer money from one person to the other. You have to create an account online and pick your username, which starts with $Cashtag. People can use your $Cashtag to transfer money to your account.
You also use the $Cashtag to send money to other people’s accounts. One can also transfer money from a Cash App to a debit card online. You can even transfer money from your Cash App to a bank account and thus not just to other Cash App accounts.
5. Skrill: Best for straightforward transactions
Skrill is an online money transfer that allows you to move money internationally. You have to move money to other Skrill account holders who can withdraw to their bank accounts. Skrill is easy to use as long as you have an online account.
4) Use money transfer agents
There are various money transfer agents that you can use to transfer money to others, either internationally or domestically. Mostly, these agents perform wire transfers. They include the following:
i. Western Union: Best for simplicity
Western Union has been operating for many years. Initially, the company operated just like ordinary banks. The company had to embrace technology when other companies started using online transfer services.
Usually, Western Union facilitates transfers between banks either domestically or internationally. Also, recipients can receive money at collection centers and not only in their bank accounts.
ii. MoneyGram: Best for money pick-up services
MoneyGram is easy to use and operates online, just like Western Union. You can use the service to transfer money from your bank account to the bank account of your recipient. MoneyGram also allows you to transfer money to people with no bank accounts. You can use your bank account or a debit card to fund your transactions.
iii. Zelle: Fastest for domestic transfers
Zelle is a unique money transfer service that helps to shorten the time taken to transfer between banks. Usually, it takes days for funds to move from one bank to the other. Zelle allows you to transfer money instantly, thus avoiding the lengthy process.
Zelle transfers are free, although some banks may charge fees for the transfers. Interestingly, you can use Zelle independently, and thus you do not need to have a bank account to use the service.
iv. OFX: Cheapest for international transfers
OFX works like MoneyGram and Western Union. You can transfer money internationally using the service to various countries of the world. The OFX offers competitive exchange rates that enable you to send money at a low cost. Domestic transfers are free, and you can pay 0.03% or lower for International transfers.
v. Wise: Best for easy sign-up
Wise was initially TransferWise. It works just like Western Union and MoneyGram in that you can transfer money from your bank account to another person’s bank account. Wise charges fewer fees compared to other money transfer agents.
vi. Remitly: Best low transaction rates
Remitly makes it easy to transfer money between various banks. The institution operates internationally, and many countries of the world support its transactions.
vii. Xoom: Fastest for international transfers
You can also opt for Xoom transfers. The company also offers favorable money transfers. If you want to move money from the US to other countries of the world, then Xoom might be of great help.
5) Use prepaid cards
Prepaid cards are payment cards that allow you to spend money on various kinds of transactions. You can buy goods and services with your card so long as you have sufficient balance.
The good thing is that prepaid cards allow you to transfer money from one card account to another online. You can even transfer money from your prepaid card account to a bank account online. The following are examples of prepaid debit cards.
a) NetsPend: Best Prepaid account for savings
NetSpend also offers prepaid debit cards that you can use for your everyday transactions. Unfortunately, most prepaid debit cards do not allow you to transfer money internationally. You can also save money in your account.
b) Walmart: Best for non-bank transfers
Walmart not only deals with the selling of goods and services but also allows you to send money. Walmart to Walmart money transfer is usually free of charge.
Is Online Money Transfer Safe
Nowadays, online money transfer services in USA are safe. Financial companies have invested heavily in security mechanisms to ensure that the users of their services do not risk their money to online hackers.
However, you should also take precautions to safeguard your account too. There are various kinds of measures that you should consider when safeguarding your money against theft. They include the following:
i) Use PIN
Most online money transfer platforms allow you to use PINs to safeguard your online transaction. A PIN means a Personal Identification Number and only allows you to access your account. You are not supposed to share your PIN. Financial companies recommend that you change your PIN as soon as you realize that someone has mastered it.
ii) Use touch ID
Touch ID allows safeguarding your account online. There isn’t anyone else with the same finger as yours, and thus you can be sure that your account is safe all the time.
iii) Use password
Password acts like a PIN in that it allows you to safeguard your account. Like PIN, you should use a hard-to-guess pin that one can never forget.
Some companies now use passphrases when creating your account. A passphrase refers to a combination of words that acts as your password. It is usually difficult to guess a passphrase.
Cost Of Online Money Transfers
Online money transfer services in USA costs depend on the method used to move money to different places and people. If you use an online money transfer to send money to accounts of the same financial company, then there are no fees to pay. However, when trains transfer across various platforms, then you may have to part with some fees.
For example, you will pay nothing to send money from PayPal to a bank account using the standard transfer method. However, to transfer money using the instant transfer method, you must part with 1% of the amount to transfer.
Moreover, if you want to transfer money from your Cash App account to a bank account, you will part with a 1.5% transaction fee if you use the instant transfer option. You will pay nothing if you use the standard transfer option.
Money transfer refers to moving money from one person to the other. Transfers can happen online and at physical stores. Online transfers are fast and convenient and you can reverse some online transfers while others are not easy to transfer. You can either carry out ACH or wire transfers. Various online money transfers are free, while others charge fees.