Money transfer or electronic funds transfer (EFT) is a foreign currency payment to an individual or organisation delivered electronically to a bank or across multiple institutions, through computer-based systems.
The terms covered in Money Transfer:
Cardholder-initiated transactions, using a payment card such as a credit or debit card.
Direct deposit payment initiated by the payer.
Direct debit payments, sometimes called electronic checks, for which a business debits the consumer’s bank accounts for payment for goods or services.
Wire transfer via an international banking network such as SWIFT.
Electronic bill payment in online banking, which may be delivered by EFT or paper check.
Transactions involving stored value of electronic money, possibly in a private currency.
How to transfer money
Deposit a Check
If the account that has the money in it is a checking account, you can write a check from that account and deposit it into the bank account that needs the funds. This transfer method is a single transaction and only requires you to appear at one banking institution. However, some banks may place a hold on the funds you are depositing because you are depositing a personal check. So check your bank policy for hold procedures, especially if you need the funds available immediately.
You can go to the bank that has the money and wire transfer the money to your other bank account. Wire transfers are expensive, but they are very quick. The money should be available in your other account within a few minutes, and because wire transfers are cash transactions, wire transfers are generally available immediately.
If you have an online account with your bank, you can log into your account and handle transactions online. You can set up an account online if you do not have one. Simply go to your bank’s website and follow the directions for setting up an account, which usually means providing some information to prove your identity and picking a password. Once you open the online account, choose the option to link another bank account to this one.
Link your other bank account to this account by providing the bank account number, routing number and other pertinent information requested. Now you can transfer money easily whenever you want by filling out the online transfer form.
This process will usually take two business days, but it definitely is the easiest way to transfer money because you can do this any time from the comfort of your home or anywhere you have access to a computer.
Whatever your reason for sending money abroad, choosing the money transfer service that gives you the best price will help you save. This means comparing your options and going with the money transfer company that lets you transfer how and where
you want for the lowest cost and the least hassle.
Here’s how to get the best deal whenever you transfer money abroad:
Sometimes it’s hard to decide which service is best for you as so many companies now offer international money transfers. This is why it’s important you know how much you want to transfer and where you want to send, this way you can exclude services that you don’t want, leaning you with only the services that are suitable for you.
How to make a cheap international money transfer
All money transfers are priced based on a combination of how much you want to transfer and how much the provider’s upfront charges add to the total. This means the overall cost will largely depend on two charges that are applicable to every money transfer, fees and exchange rates:
These are the clearest costs associated with a global money transfer and will be stated explicitly by the provider. They include any commission payable on the amount you send and the transfer fees that you’re liable for.
When the money arrives at its destination some providers charge a receiving fee which isn’t always stated clearly! So make sure you check if any charges will incur when the money is received into the other account.
Exchange rates determine how many Dollars, Euros or Chinese Yen you will get for the amount you want to transfer and can be something of a hidden cost because they are more difficult to calculate.
Money transfer services often don’t state the exact exchange rate they offer; instead they tend to declare the cost of a money transfer as an overall package, inclusive of fees and exchange rates.
The easiest way to find the best money transfer abroad is to compare the total cost, i.e. how much your transfer will cost once all the fees, charges and exchange rates have been taken into account. The two recognise international money transfer agents are Western Union and Money Gram.