With businesses and other personal transactions going global, and transactions becoming more sensitive and complex, financial companies are finding more ways to make financial transactions faster and safer. While there is no ‘actual’ money transfer of the notes themselves, banking relationships or connectivity allows the transfer of funds to be made.
Money transfer services have been around for a while and have been gaining popularity because of their convenience. There are certain fees of course to be paid in order to make transfers but they are not really high and just about reasonable.
Here are some types of global money transfer services available.
- Wire transfer. Wire transfer is the transfer of funds or crediting another account and can be done between two persons or from one company to another. If there are no accounts involved, actual cash transfer can be done in a cash office. Wire transfers between banks are considered to be the most efficient (and speediest) way to transfer funds between two accounts. If you are going to do a bank transfer, familiarize yourself with its systems and processes:
- The person tasked to do the wire transfer accomplishes a form and then proceeds to their bank branch of account. Details such as recipient’s account and amount of money are indicated in the forms
- The bank then uses a secure system (like Fedwire, or the more popular SWIFT), to send the encrypted message and codes to the receiving bank and account
- Transfer of funds may take a number of hours (or sometimes, days, for other banks and systems) before it is made available to the recipients account. Only same banks or banks with transfer agreements can provide international money transfer services. Take note that banks charge a certain fee for these types of transactions.
- Electronic funds transfer. There are various application for electronic fund transfer like
- cardholder initiated transactions—where account holder uses a payment card for the payment or transaction
- direct deposits—payment of employees’ compensation
- transactions where payment is made or ‘claimed’ by the company on behalf of the customer (which should be pre-approved)
- Other types of money transfer services include:
- Email Money Transfer, an online banking transfer between Canadian banks
- Giro, also known as direct deposit
- Transfer by postal cheque, Money Gram or others
Money transfer services can be relied on when it comes to stability and security. However, just like any other financial service, you must be careful about the confidentiality of your transactions. Do not share any confidential information that may jeopardize your accounts. Allows verify with the recipient of the money transfer if they have received the amount you sent, if it is on time, and if no unnecessary fees were charged. If you have a choice, avail of the services of well-known and established money transfer service company in your area.