Money transfers are also known as wire transfers. They refer to the electronic transfer of money from one person to another across the world. Because of this convenient technology, you can send money to anyone, anywhere, in as easy as 1-2-3. This article gives you the basics and all you need to know about money transfers.
Money transfers make cash readily available.
One of the advantages of money transfers versus that of banks is that money transfers make cash readily available within the same day after you have sent the money. This fact is unlike banks where you will usually have to wait for a period of three days to one week before the recipient has the amount credited to their account.
This fast transfer makes it highly advantageous, especially if you are sending money for an emergency expense, or one where you need cash right away, such as the purchase of a house, a car or any other expensive asset overseas.
To learn more about how cash is readily available, read up on this XE Money Transfer review.
Money transfers can be both domestic and international.
Companies that offer money transfer services offer both domestic transfers and international transfers. Domestic transfers refer to the remittance of money within the same country from one branch or bank to another. This is usually done simply by the debiting of the branch where you deposited the amount, and crediting that same amount in the branch where your recipient is to get the money.
International transfer refers to the remittance of money from one country to another. When this type of transfer is involved, such as to purchase a home or an apartment overseas, for example, it is a more complicated process in the system of the money remittance companies, as the laws of both the sending and receiving country have to be respected.
Money transfers work internationally, even when you only have your local currency on hand.
Another advantage of sending money through money transfers is that you can send money overseas even if you only have your local currency available. For example, you are from the UK, and you wish to send money to your brother in the United States for the purchase of your holiday home. Even if you only have GBP on hand, you can send the same, and it is the remittance company that converts the currency so that your brother in the United States receives the amount in US dollars.
This situation is different from bank transfers, where, when you make a deposit, if the receiving bank account is only a US dollar account, you will also have to deposit only in US dollars.
Money transfers are relatively faster in speed than other alternatives.
Domestic wire transfers are sent within the same day, while international wire transfers usually take a day or two. This speed is still faster compared with banks, where you will have to wait for a long time.
The clearing time of money transfers is faster because the transaction is usually completed within the same day. This means that the receiving branch will not have to put the same amount on hold for a couple of days, which is usually the case, for example with check deposits.
Money transfers offer a wide range of global services as well.
Money transfers are not just used to send and receive money. You can also use the same for global payment services. For as long as you are sending money as payment for legal services in the country receiving the fund, then this wire transfer can successfully move from one country to the other.
Money transfers are easy to do, too.
If you are not very well versed with more technical terms and more mechanical means of sending money and making deposits, you do not have to worry about this with money transfers in remittance companies. Money transfers are relatively easy to perform and complete.
To send the money, or wire money, all you have to do is present a valid ID, fill up a form that is provided to you, and deposit the money. You will be given a receipt that contains all the sender’s and receiver’s details, including a transaction number, to signify the completion of that specific money transfer transaction.
To receive the wired money, the recipient needs only an ID as well, to fill up the form, and the specific transaction number that is given by the sender. This transaction number is very important for them to withdraw the money, as this is one of the security measures to ensure that the person claiming the amount really is the recipient who ought to receive the same.
Electronic wire transfers, or money transfers, are now the more commonly used means of sending money, both domestically and internationally. For as long as you fully know and trust the recipient of your money, and that you are not just sending to some bogus scammer, then this method of sending money is generally considered safe and reliable.