There are four different types of money transfer services available: wire transfer, bank draft, Internet money transfer, and money orders. All these methods can be used both domestically and internationally. A money transfer service is used to quickly provide funds to both businesses and individuals. They are typically used in situations where a check would take too long, may not be accepted or where the recipient does not have a bank account.
Wire transfers are one of the more popular money transfer services that are used to move funds from one bank account either to another bank account or to a cash office. The person who is sending the money can create a wire transfer from his or her own bank or from a cash office. In order to complete a wire transfer, you need to have the details of the recipient’s bank or their wire transfer code and location code for the cash office where they will pick up the funds.
A bank draft is a type of money transfer service most commonly used for payments to companies in foreign countries. A bank draft is issued by a bank or money transfer company and is cashable at any banking institution. This method of payment is more expensive than other methods, but is preferred by companies and large institutions due to additional security and audit trail features.
Internet money transfer services have increased in popularity as security has improved. Several large companies specialize in this type of service. Funds can be transferred to anyone with an email account in the world and is available in all recognized foreign currencies. Transfers can be created through a third party, or directly from the sender’s bank account.
Third party companies usually provide a free basic account set up, but charge a transaction fee for every transfer of funds to your bank account. In addition, there is a processing delay of between five to seven days to receive the funds in your bank account. If you are going to use this type of service, check the reputation and conflict resolution steps first.
Several specialized firms offer money orders as one of their money transfer services. The sender goes to the cash office and creates a money order for a specific cash office and person to pick up. The recipient is notified by the sender and is responsible for going to the cash office and picking up the funds. A secret password is often used to validate that the correct person is receiving the money order.