Money transfer is the process of manually or digitally moving money from one person or business to another person or business. Cash transfers, bank transfers, wire transfers, electronic fund transfers (EFTs), and online transfers are some of the simplest ways of transferring money. Bank transfers and EFTs take time, while online transfers and banking app transfers are instant. This post discusses a few common and simple methods of transferring money.

What are the types of money transfers?
There are many ways of transferring money, some of the most common examples being:

• Cash transfer
  If a sender deposits cash or a check into the receiver’s bank account, debit card, or credit card, it is known as a cash transfer. It is one of the simplest transfer methods, and the transaction happens instantly.
• Bank transfer
  Bank transfers are electronic or online transfers where the bank transfers money from one account to another on the sender’s instruction. The sender can schedule a transfer through a personal visit or the bank’s mobile application or website. There are three common types of bank transfers: Automated Clearing House (ACH), real-time payments, and wire transfers.
  Wire transfer is among the most widely used methods. Here, a sender sends money to a bank and instructs it to transfer the amount to a third person’s bank. Once the recipient’s bank receives the money, they verify the transaction with the sender’s bank and transfer the money to the recipient’s account. Customers must pay a fee to initiate a wire transfer.
• Money transfer services
  Money transfer services are licensed businesses through which a person can transfer money within or outside the country. One can visit the service provider in person to initiate a transaction or do it online.
• Peer-to-peer transfers (P2P)
  Peer-to-peer transfers are transactions between individuals or businesses using mobile applications, websites, digital wallets, and online payment services. It is among the easiest, quickest, and cheapest ways to pay bills, transfer wages, and send money to friends and family.

Individuals can choose a suitable method depending on the following:

• Amount of transfer
• Location of the receiver
• Infrastructure of the bank
• Cost of the transfer
• Urgency of the transaction

How to initiate international money transfers?
Many banks and fintech companies offer international money transfer services in exchange for a fee. The charges may vary based on the amount, exchange rate, timing, urgency, and the destination country. Some service providers charge a percentage of the transaction amount. Here are two common ways to send money internationally:

• International wire transfer
  One can make an international wire transfer from one bank to another if they have the recipients’ information and bank account details. For high-value transfers, some banks may inquire about the purpose of the transfer and the source of funds. The sender can initiate an international wire transfer online or in person by visiting their bank.
• International transfer provider
  International transfer providers transfer money faster than banks, which is ideal if someone wants to complete the transaction quickly. Senders must compare the costs and exchange rates of different providers and check whether there are limits on the maximum amount that can be transferred in one go. The service can be availed by visiting the provider’s website or heading to one of their offices.

What are money transfer apps?
Money transfer apps are P2P transaction platforms that can be operated through a mobile phone. Both the sender and receiver should have the app for the transaction to be successful. A sender can create a wallet in the app, keep some money in it, and use the amount when needed. Alternatively, one can link the app to a bank account or credit card number and transfer money directly from the bank or a credit card.

Money transfer apps offer several services, such as bill payment, payments through QR codes, and auto-pay options for regular payment of phone bills, subscription fees, insurance premiums, and credit card payments. Some money transfer apps reward users with gifts, discount codes, and cashback, making them popular.

How to stay safe when transferring money online?
The following are a few tips to stay protected when transferring money online:

• Use a secure, private P2P platform for online money transfers. Check whether the platform has the necessary federal licenses for sending and receiving money.
• Ensure the P2P platform adheres to high-security protocols and protects against attacks from scammers and hackers.
• It is difficult to reverse a transaction if someone transfers the wrong amount or sends money to a different person by mistake. So, be cautious and double-check the name and amount before initiating the transaction.
• When using digital wallets and mobile apps, enable multi-factor authentication to keep private and financial information safe. Apps that allow multi-factor authentication are considered safer.
• Do not share passwords or OTPs with anyone.