The concept of sending money online is extremely popular and helpful nowadays. Before this, if we needed to send money to someone, the quickest way would be to ring up your bank. But, this would require you to wait in line until your call is taken, then you had to undergo the security checks before finally seeing your money leave your account and nestle into someone else’s. Alternatively, you could visit your local bank branch and ask to send money, or you could write a cheque for the other party. Either way, none of these methods was particularly easy or fast.
Now, we have this idea of sending money online, which covers so many different methods. Multiple companies are offering different ways to which you can send money online. In most cases, all you need is an account and your bank details. Depending on what method you choose, the money can be in another person’s account instantly, or it could take a few hours.
- Sending Money Online Through Your Bank
- Sending Money Online Through Third-Party Services
- Benefits Of Sending Money Online
- Potential Risks Of Sending Money Online
Sending Money Online Through Your Bank
The majority of banks will offer an online banking service for you to use. This is a handy way of checking your accounts and looking at your daily bank statements. But, it’s also a really easy way of sending money online. All you have to do is register for online banking, then log in, and click on the account you wish to send money from. After this, it’s simply a case of putting in the details of the other person’s account and choosing how much you want to send.
The benefit of sending money this way is that you’re guaranteed of a secure transaction If it’s done through your bank, they’ll take all security measures to ensure your information is protected. Not only that, but you have the benefit of sending the money directly to the other person’s bank account. They don’t have to withdraw it from anywhere, it will just appear in their account on the same day.
There are only two main negative aspects of this method, and they both revolve around time. Given that you have to input all the bank details manually, it can take a good few minutes before you’re ready to proceed with the transaction. Furthermore, sending money directly from bank account to bank account isn’t always instantaneous. Sometimes, the money can appear almost right away, but it is also possible for it to take a couple of hours. The one thing I will say about the first negative is that your bank usually saves the payee information after you’ve sent money to them. So, if you have to send to the same person, all their details should be saved, which makes the process a lot quicker.
Sending Money Online Through Third-Party Services
As well as sending money directly through your bank, you can also send money online through various apps. Typically, these apps require you to register with them before you can send money. Here, you’ll have to fill in basic personal information including where you live, your date of birth, and create a secure password. This password is incredibly important as you’ll use it to sign into your account and send money. Of course, this is a loose example that pretty much applies to every online payment service/app out there. Each one may have slightly different requirements or information they want from you. Below, we’ve listed a few of the most popular services for sending money online:
PayPal is easily one of the most used payment platforms on the internet right now. Primarily, people create a PayPal account so they can pay for things online more securely. You create your account, link it to your bank account/credit card, and complete transactions through PayPal. It’s fast and convenient as you don’t have to type in your card details every time you want to buy something. Normally, you just have to enter your password, and the transaction is complete.
However, PayPal can also be used to send money to other people with a PayPal account. Again, once you have your account up and running, it’s a very simple process. You log into your PayPal account and select the option to send money. Here, you can choose from your list of contacts – if you have any – or type in the recipient’s email, that they’ve linked to their PayPal account. Choose how much you want to send, and away it goes.
You have two immediate benefits with PayPal in that the money goes through instantly and the person has it in their account right away. This makes it ideal in scenarios where the person needs to be sent money quickly to pay for something. Following on from this, there’s no time-wasting by having to type in account details, all you need to know is their email.
However, there is a negative in that the money goes directly into their PayPal account. If they need to pay for something online via PayPal, this won’t be much of an issue. But, if they want the money in their actual bank account, they have to go through the extra effort of withdrawing it.
Following closely behind PayPal as a popular app for sending money online, we have Google Wallet. Now, this is Google’s offering for online payments, and it’s fairly new compared to PayPal. Having said that, the concept is the same; create an account, add payment methods, and start sending money. What makes this different is that your Google Wallet account is linked to all your other Google accounts. So, if you have a Gmail account, which most people do, you’ve pretty much already got Google Wallet. Furthermore, if you have an Android phone and have added a card to your account to buy things from the Google Play Store, then you’ve already got a payment method added.
Sending money is as simple as clicking on the Send Money menu and entering the amount you wish to send. You can then select the recipient in one of three ways; by typing their name (if you have them as a contact on Google), by entering their email address, or by using their mobile phone number. Once this is done, you click send, and the money is in their Google Wallet right away.
This is a very popular way of sending money online because of the interconnectedness you have with your Google Accounts. It means you don’t have to go through the hassle of registering if you’ve already got a Google Account. Plus, like with PayPal, the transaction is instant. To make things even better, if you download the app onto your smartphone, you can set it up to use Android Pay and pay for things using your phone as a contactless payment device.
The only downside is that the money goes into their Google Wallet, not their actual bank account. Again, like with PayPal, this means the recipient has to withdraw the money themselves.
Next, we have Western Union, which has long been a popular method of sending money to people overseas. This is a service that’s specifically aimed at people sending large amounts of money across the world. For example, if you live in the US and have a child going to university in the UK, this is one of the best and quickest ways of sending them money.
The premise is similar to the other methods in that you need to register before you can send. Then, it’s a case of selecting how much you want to send, but you also have to choose options for the country you’re in and the country the recipient is in. You can also choose whether you want to send money through your actual bank account or by using a credit/debit card. The difference is that cards offer quicker payments, but have a higher fee. Also, you choose whether the money is sent directly to another bank account or to a Western Union location where they can pick it up in cash.
The major benefit of this service is that you can securely send large amounts of money halfway across the world. It also works out the conversions for you if you’re sending to a country that uses a different currency to yours.
The downside is the transfers take days rather than minutes, and there is a transaction fee.
MoneyGram is essentially an alternative to Western Union. It’s another of the most trusted services for sending large amounts of money across the world, all via your computer. Again, you start by setting up an account and then you can estimate the fees that come with your transaction.
Select where you’re sending the money, where you’re sending it from, and how much you’re sending. You can also choose how they’ll receive the money, either as cash from a MoneyGram location or directly into their account. Similarly to Western Union, different fees apply to different payment methods. If you send money using a credit/debit card, it’s more expensive than sending via a checking account.
The pros and cons of MoneyGram are identical to those of Western Union; secure money transfer, but long waiting times.
It’s worth noting that there are loads of other services that allow you to send money online. However, we’ve listed these four as they’re the most popular and widely used.
Benefits Of Sending Money Online
As you can see, there is a multitude of ways you can send money online. Whether it’s directly from your bank and their online banking system, or by using a third-party service. There is one lingering question that remains; what are the benefits of sending money online? How is this method better than, say, sending money over the phone or through your local branch?
Well, the first benefit has been mentioned a lot, and it’s speed. It’s a lot quicker to send money online than it is to contact your bank in any other way. Especially if you use a third-party service like Google Wallet or PayPal. Here, all you have to do is log into your account, and send the money. It can literally take less than five minutes from the moment you load up the page to the moment the money is in the recipient’s account.
You also have the benefit of being able to send money without worrying about giving away your information. If you send money online, you don’t have to make any noise or say anything. However, if you send it over the phone, who knows who might be listening to what you say? Especially if you’re in a coffee shop and desperately need to send someone money. It would be ridiculous to try and do it over the phone, it wouldn’t be safe! But, as long as you have a secure internet connection, you can send money online and keep your information safe and sound. There’s no worry of someone overhearing you, and you can send that money quickly in an emergency situation.
Potential Risks Of Sending Money Online
There aren’t many negatives of sending money online other than the potential fees. Some companies charge you a fee to send money to someone, but it’s usually only in cases where you pay using your credit card or you send money abroad. For local transfers, it’s likely to be free.
The other risk is that your personal information could be stolen by a hacker. This is an issue when you send money on a site without a secure connection. Browsers will tell you if a connection is secure, and you should avoid sites that aren’t. If you use one of the services we mentioned, they all have secure and safe connections.
All things considered, sending money online is definitely a modern concept that’s here to stay. With so many different options at your disposal, anyone can send money to anyone, no matter where they are in the world. It’s become a very popular way of paying back friends as quickly as possible. You all go out for a meal, and someone pays the bill and asks the rest of you to send money to them. So, you go online, and easily send it within minutes. It’s made life way more convenient as you can pretty much send and receive money whenever required. There are no waiting times for small transactions, and it’s all perfectly secure.