Transferring money can be either hectic or easy at both times depending on various factors including the mode you select or the country you are sending to. Sometimes charges are incurred by source as well as destination countries for efficient processing but customers always look for the ways involving minimized deductions and smooth and safe transactions.
Four of the most common methods are presented herethis content, which are most popular among senders in USA and are considered more trustable as compared to many others. These include ACH Transfers, Wire Transfers, Transfers using US Mail, and PayPal.
Before discussing the procedure of ACH transfer, we need to know what actually ACH transfer method is. ACH transfer method involves money transfer between two banks using electronic mode using Automated Clearing House networking, which is one the most common and the largest money payment methods especially in USA.
The transactions in ACH takes place between two banks electronically instantly online including external money transfers, individual person-person money transfers, utility bill payments, direct cash deposits, online cheque processing, salaries transfers, deposits from government employees, and much more. Many third party apps make use of ACH networks to send money to friends, family and dear ones.
As far as ACH transfer types are concerned, these include debit as well as credit transactions. Debit transactions are the ones, which take the money out from the account for some purpose including sending money to someone, making deposits, paying utility bills, purchasing anything or performing online shopping, or anything. This can also be an auto debit, which you or your company can set for you for any product or service you apply for.
On the contrary, ACH credit transactions include crediting the money into your account. This is pushing some amount in your account involving salary transfers, refunds, cash withdrawals into account, and cheque deposits in your account, and so on. IN both debit as well as credit transactions by ACH, charges are deducted for external transfers i.e. international as well as local depending on the country rules andtax information. Internal or same banking transfers arenot charged in most of the cases.
Some more about ACH bank can be seen below:
- For external funds transfers using ACH network, there are certain account limits, which correspond bank can tell you better as it varies from bank to bank.
- Cut off time can be there like if you send money then processing will take place on next business day i.e. if you send on Saturday then processing will be done on Monday.
- If you do not have sufficient funds, your cheque will bounce back with penalty fees and transfer will stop.
- ACH does not transfer money in banks outside US
US mail is commonly known as US Postal Service. It is an independent organization of USA government and provides postal service in entire USA. All of US states are included in the service and it is explicitly licensed by USA constitution.
US mail does not let you transfer or send money in hard cash but yes, you can send money orders using US mail. For making international money transfers using US Mail the process is easy. International money orders processing is the best, fast, simple, and secured method for transferring money internationally.
- You need to go to post office and get money order worth $700 maximum. Cost may vary but max is $700. You can make cash payments for the order and credit, debit, or traveler check payments are also allowed.
- You can then send the same order to Mail Express International or any service offering the same. First check the country you are sending money to should accept money orders. Listed countries can be asked to the agent sitting there or can be checked online.
- If you are accepting a money order instead of sending, you have to be careful. Before making acceptance, you have to be sure that it is real or not. If any suspect of cheat or fraud comes in mind, do not hesitate to call US Mail service as soon as possible. You can also call money order verification system providedin USA.
- For recognizing fake orders, check the dollar amount write. If it is discolored or erased, it indicates fraud. Dollar amount may be listed twice.Value of order may be greater than $1000, which cannot be possible for local money orders.
The most common and easiest way for transferring money within minutes is wire transfer. The method is adopted in almost all countries over the world and it is done within minutes. Wire Transfer within the country charges very less or no fees but international transfers are charged as per source and destination country rules.
There are some banks, which do not charge for international transfers also if you send money up to some limits. Like in UAE, if you send money to Pakistan more than 1000 AED. You won’t be charged any fees.
Wire Transfers are of two types i.e. Xpress and Normal. Normal transfer takes no or very less fees and transaction takes up to 5 business days but Xpress Transfer charges minimum 10-50$ depending on transaction amount and completes in 24-28 hours depending o source ban as well as correspondent bank in destination country. You can follow simple process to transfer money using wire transfer.
- First, you go to bank or log in on your online bank account.
- You create payee or beneficiary and enter his or her details. Details have to be accurate and free of mistakes. They include TITLE, ADDRESS, BRANCH, IBAN, SWIFT CODE, BANK ADDRESS, and TRANSFER AMOUNT. The major consideration in these is Title and IBAN. They do not have to be wrong else money would be reaching to anyone else account. So, it is better to confirm the details twice before sending.
- After verifying, send money to the beneficiary along with the charges to pay. Fee or charges can be from source bank or destination bank. It is up to you that how you want to pay transaction fees.
- Keep track of all receipts you get until your beneficiary receives the amount.
PayPal is a safe and secured money transfer protocol used online. You can send money anytime anywhere using PayPal. PayPal is not supported by all countries worldwide but for most of Europe and Middle East countries it works.
Transaction takes place I less than a minute and receiver gets his credit in his bank or card within 2-3 business days depending on his location. Process of sending money using PayPal is very easy and secured.
- First you create your account if you do not have one
- You login and click at send payments for goods or services. This option will come only to you if you are unable to send using friends and family. Friends and family option is only available in selected countries. Benefit of this option us that there is no service charge deducted but for other option, service fee of 5% is charged.
- Enter email of the person you want to send money. D verify thrice because if you write email wrong, money will go somewhere else and you cannot take them back once sent.
- You are now done. Verify from the person or company you sent money to. He will get deducted money like you send $100 he will get $190 or so depending on his location.
In PayPal, you can also create a dispute where you can request PayPal to refund you money back if you do not get your product or service. First, you email the concerned person and is he does not pay, you create dispute.
PayPal reviews comments from both the parties and then decided in anyone’s favor. Also, it blocks seller account until case is resolved and all his transactions are put on hold until he does not reply or send money back. PayPal takes care of buyer and seller protections and refunds their amounts if there is any possibility.
Many other ways do exist, but we have discussed very few of them. Transferring money depends o the location you send from as well as destination. You need to have a look at your surroundings and decide the ways to send money with less deductions and fast and smooth transactions.