What Is the Best Money Transfer Company?
Money transfer refers to a mode of moving finances from a sender to a recipient. It could be from one person to another, from one company to the other, or even from company to individual, or vice versa. This transaction may seem simple, but it matters a lot more to the economy of your country. Such transactions of money enhance a country’s economic growth. How does it happen? Well, that is because people get the chance to buy and sell goods and services.
Also, it is not just within the limits of your country. Rather, you can send money overseas too. Numerous financial companies offer the transfer of funds throughout the world. This post will introduce you to the best money transfer companies. Apart from that, we will unpack all about money transfer, including how it works and the different methods you can use to transfer money. Keep reading to find out.
Technology and money transferring
Transferring money has become simpler thanks to new technology. Thanks to online methods, you can make fund transactions online. It only takes a few minutes of your time. Running to your bank is not necessary anymore. Instead, you can make financial deals from anywhere. People prefer this method as it saves a lot of time and energy. It is no wonder that the traditional money transfer options are slowly being replaced by instant electronic funds transfer services. Options such as money orders and checks are old news. Today, we tend to rely on instant money transfer options like PayPal, Payoneer, and Skrill.
People want to transfer money for many different reasons. For instance, you may be working abroad and wish to send your salary to your family back home. Or else, if you wish to buy an item online from a foreign country, Here, you will need to make the payments to the seller. It should be done through the channels the seller trusts. You may have to pay them online.
How to transfer money?
There are many ways you can transfer funds to others. Take a look at the following options and choose your preferred method:
i) Transfer money through a bank
You can transfer money from your bank account to someone else’s account. The other party could be within your bank or outside your bank’s branch. However, there is a difference in the process. For instance, if you are sending funds to someone within the same branch as yours, you need to send money with the checking account number of the recipient. Usually, the transfer process is relatively fast and instantaneous.
On the other hand, suppose you are transferring money to someone in another bank or branch. In this case, you will need both the account and the routing number. Unlike transfers within the banks, transfers between banks can take more time. Keep in mind that transferring money using a credit union account happens the same way transferring a bank account occurs.
There are two ways you can use it to transfer money across banks and credit unions, such as:
1. Wire transfer
Wire transfers are essentially moving finances from one bank to the other. We would recommend this method for sending large amounts of money. Here, the two financial institutions communicate directly to make the transaction happen. For instance, let’s say you initiated a transfer. Then the official of the sending bank (your bank) communicates with the receiving bank and completes the transaction. However, keep in mind that wire transfers operate fast. Once you initiate a transfer, chances are you may not be able to reverse the action.
2. ACH transfer
ACH transfers are different from wire transfers in several ways. It functions through an Automated Clearing House (ACH). In this case, the ACH acts as a third party to facilitate the transfer on behalf of the sending and receiving banks. Once the transfer process is complete, they forward the money to the receiving institution. 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. However, this method is not suitable for large money transfers.
ii) Use a check
Another method is using a check. A check is a written and signed document through which you can transfer money to others. It is a convenient option to settle payments. You can write it anywhere, anytime—be it at home or work. All you need is a checking account.
If you want to settle a payment, you can do so using a check instead of handing over cash to the recipient.
How do checks work? Suppose you write a check to a company. Then the company provides it to their bank to deposit or cash out. The funds move to the account you provide when you deposit the check. You can also cash out and take the funds when the check is over.
You can also get the assistance of apps if you wish to deposit checks online. A few apps that allow this process include Venmo and Cash App. Once a check is processed, funds move from your account to the recipient’s account.
iii) Use payment cards
Payment cards such as debit cards, credit cards, or prepaid cards allow you to transfer funds. For example, you can shop or pay medical bills with your card. Here, you are transferring funds from your card account to the recipient.
Besides, you can transfer funds from one debit card to another online using an app.
Remember that it is only possible if your card issuer lets you manage your card online. Debit cards let you access your checking account. However, prepaid cards work differently. Note that prepaid cards do not necessarily link to bank accounts. Instead, you have to recharge them online using a bank account or at a physical location.
Prepaid cards also allow you to send money online. Plus, you can use them for paying bills. With credit cards, you basically borrow money from the card issuer. Also, when paying bills, you send money from your card account to the recipient’s account electronically.
iv) Money order
A money order is another method to transfer money. It works pretty much like the check method, except it does not require you to have a checking account. Here, you will have to visit a post office or a bank to send funds to someone. The recipient’s name and the amount you intend to send are usually printed on the document.
Unlike checks, whereby funds get out of your account once the processing is done for 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 it out.
v) Direct deposit
Suppose you want to pay your employers. In that case, direct deposit is a perfect choice. Usually, government agencies and non-governmental organizations use direct deposits to transfer money to the beneficiaries. An ACH transfer, which we discussed earlier, is an example of a direct deposit.
All you have to do is fill out a direct deposit form. When you do, you will receive money from the relevant source. ACH transfers usually take more time (several days) to complete. However, you can still accept ACH payments instantly through many companies.
vi) Use mobile wallets
Mobile wallets allow you to transfer money faster. Some examples of mobile wallets include PayPal, Payoneer, Cash App, and Venmo.
What is the best money transfer company?
There are numerous money transfer companies ready to serve you. However, this leads us to wonder ‘what is the best money transfer company?’ You have to consider fund transfer effectiveness, among other things, when choosing the best. To make things easy for you, we listed the best companies below. Get to know them and see if the features they offer work for your requirements.
1) PayPal
Surely you must have heard of PayPal. It is one of the most well-known money transfer companies. Paypal’s specialty is that it functions in over 200 countries. Since it is an online service, you should create an account online to get their service. As you sign up, link a bank account or debit card to assist you with your transfers.
Below are some ways that you can use PayPal to send finances through PayPal:
- Click on Payments.
- Then choose ‘Pay’.
- Provide the recipient’s PayPal username, name, email, or mobile number.
- Enter the amount you wish to send.
- Select the currency for the transaction.
- Optionally, you can add a memo.
- Then click on the Next button.
- Choose how you prefer to pay.
- Then click on the Next button.
- Select “Friends and Family” or “Goods and Services.”
- Click on the Next button.
- Finally, confirm the transfer details and click on Send.
2) Western Union
Western Union is a money transfer company that has been around for so long. The company allows you to either transfer money online or at a physical branch. Customers with busy schedules would agree that the online money transfer method is much more convenient. All you need to do is create your account online. Link your bank or debit card to your Western Union account to assist you with your transactions.
You can use Western Union to send funds to someone’s bank account, mobile wallet account, or at a location.
- Make sure to follow these steps when making transactions online:
- Log in to your account (sign up for free if you do not already have an account)
- Select the country, the amount you want to send, and your preferred delivery method.
- Provide your recipient’s name.
- Pay for the transaction using your card.
- Soon afterward, you will get confirmation by email.
- Get the tracking number (MTCN). Make sure to save it somewhere, and share it with your receiver for pick-up.
3) Remitly
Remitly is a platform that lets you send funds online from various countries. Not only is the service faster and more secure, but it also offers good exchange rates and low transfer fees. Remitly functions are similar to Western Union. However, the difference is the price you have to pay. Compared to Western Union, Remitly is cheaper. You can also use Remitly to send money for pick-up at a location. Here are the steps you have to follow to send funds through their app.
- Log in to the Remitly app.(Sign up to create an account if you do not already have one.)
- Choose ‘Get Started’.
- Enter the amount you want to send.
- Choose your preferred delivery method and provide the necessary details as per instructions.
- Provide details about your recipient.
- Then, the recipient will get a notification when the funds arrive in their account.
4) Payoneer
Payoneer is a relatively new company. However, during this short time period in the industry, the company has earned a loyal customer following. Through Payoner, you can send money online. To transfer funds, you need to provide the email ID of the recipient.
Make sure to follow the steps below when transferring your money using Payoneer:
- Log in to your Payoneer account. (Sign up to create an account if you do not already have one.)
- Then, go to ‘Pay > Make a Payment.’
- Select ‘another Payoneer account’. Here, you can also select a bank account.
- Provide the necessary details as per instructions.
- Finally, click the “Pay” button. (Make sure to double-check the details before clicking on “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.
5) MoneyGram
MoneyGram is another well-known money transfer platform that operates like Western Union. You can use this platform to transfer money to various locations globally. The company allows you to make your transfers with a bank account, cash, or a payment card. Once you complete the transaction, the recipients can pick up the funds at locations close to them. Make sure to follow the steps mentioned below to successfully send funds using Moneygram:
- Locate a nearby MoneyGram Money Transfer location.
- Remember to bring your identity card, the recipient’s details, and the money you want to send.
- At the location, meet with a Moneygram agent and hand over the money and fees necessary for the transaction.
Bottom line
There you have it! All you need to know about money transfers! Money transfers have been more and more convenient throughout the years. Online methods are mostly preferred as they save time, effort, and energy for users. It is convenient, and you can send money from anywhere, any time of the day.
Choosing the best money transfer company could be tricky as there are many options. However, this post made things easy for you by letting you know all about the best money transfer companies available. We hope that you figured out the most suitable option to make your online transactions.