There can be many reasons why you might need to send or receive money. Perhaps you have recently had a credit card stolen and a friend is sending you money from abroad. You might also need to pay an overdue bill or to send funds to a friend for his or her birthday. Regardless of the reason, there are many types of money transfer services available. Unfortunately, not all of them are created equally and there are certain institutions to avoid. Let's take a look at how a typical money transfer functions before examining a handful of metrics to keep in mind at all times.
How Do Money Transfers Work?
While you are often able to head to a physical office such s Western Union, the majority of transfers will now take place online. We will therefore focus upon this method. Once you establish an account with a transfer agent, you will need to provide the details of the recipient. These will normally include their name, their physical address and their bank account details. Once these are confirmed, the transfer will take place and a nominal fee will be attached (this will vary depending upon the agency). While the money is sent immediately, there may be a waiting period before these funds are able to be withdrawn. This once again depends upon the bank associated with the recipient.
The Benefits of Money Transfers
The main benefit is that many of these transfers will clear in a very short period of time; sometimes within a matter of hours. This is often the case with larger firms such s Western Union. As the recipient will not need to have an account with the branch, it is easy for them to access the funds when needed. Many of these firms use highly advanced encryption techniques in order to keep the details of both parties extremely safe from prying eyes.
The Potential Drawbacks
The main problem with many money transfers is the fees that are associated with the service itself. These can often be quite high and they may rise and the amount of funds being sent increases. Those who are already on a limited budget will therefore have to keep a close eye on these figures.
What to Look For in a Money Transfer Service?
First and foremost, how trustworthy is the company and are you able to find any independent online reviews? These will often be essential in order to appreciate what others might have to say. Another important point is to examine the type of security software the employ during a transfer. The most reliable is known as secure sockets layer (SSL) encryption. This will normally be made clear on the homepage of the site in question. Most importantly, what types of fees will you be expected to pay for the transfer and is there a minimum amount that can be sent or received within a certain amount of time? Be sure to find the answers to all of these questions, as you will then be able to make the most out of these unique electronic providers.
