Transferring money is a fundamental task that most people have to do on a regular basis. That’s not to say, however, that we all always find it easy — or quick. The good news is that there are many ways that we can transfer money quickly, if not almost immediately. In fact, many of the ways that we have available to us these days are just as quick as actually depositing hard cash into a recipient’s account at a bank.
If you were to take the entire process into account – setting up the transfer, initiating it, the actual transfer time between accounts, and how long before the receiver could access the funds, then one of the quickest way to transfer money is easily through the use of online payment providers, like Cashero.
The most predominant feature of any financial transfers in our modern-day lives is the use of the internet to do so. Here, we look at ways to transfer money online as well as why. The reason behind why you are transferring money can have an impact on what method you choose for your transfers. Additionally, we also identify the advantages of making transfers as well as some of the disadvantages. Finally, we talk about the security of online transactions and what can be done to ensure that you are making transfers as safe as possible.
Ways to transfer money
Here are a number of ways that you can transfer money online – without any need to step foot outside your front door, let alone into a bank or shop.
Online Payment Providers, such as Cashero
Many of us will already have used some form of online payment for goods purchased online, and as a result will already have found one of the quickest ways to transfer money, whether we knew it or not. Such options, like Cashero, also have the ability to send funds directly to a person and one of its main advantages is that you need to know very little about that individual. Often just their phone number is needed.
The result is that people have to divulge less financially sensitive information such as bank account details, yet the speed at which they can be paid can be almost immediate. It’s worth noting that different online third-party payment companies will charge their fees in different ways. Some may be more expensive than others, or some may be better to use for international transfers.
Wire
A common way to make a transfer of money is to use your bank to wire it to another account. This can be to another one of your accounts or someone that you know. Doing so maybe in the quest of increasing one of your other account balances or settling a debt with another individual. You will need to know the account details for both, but often when using a bank, transfers are exceptionally quick. In fact, if the transfer is within the same bank, the transfer may be almost instantaneous. Even between banks, if the currency is the same, the transfer can be quick, yet some banks can still take 2-4 days to process a wire transfer, which can be frustrating when there are other, faster options available.
International institutions
Companies that help individuals wire money across borders as well as domestically can also be used to transfer funds. They have the added benefit of often having outlets in many different locations so that if a recipient needs to take out cash as a result of the transfer, they can do it easily. Additionally, after years of being in the business, companies like this will often have the infrastructure in place to make a wealth of international payments in little-used currencies. The speed at which these transfers will be completed varies, but often you can pay that little bit more to get the quickest service available to you in respect of the currency you are transferring.
Advantages of transferring money electronically
There are many advantages that occur thanks to being able to use the internet to make financial transfers. It’s good to bear them in mind when choosing your final method or company to help you with your transfer.
Records
Recording financial transactions is good for both your own financial health as well as in the future should you be audited in any way. Records that are kept of transfers can be helpful to you as you know where your money is going as well as when and why.
Speed
Transferring money online is quick. While various companies may have different speeds with which they can transfer cash, it’s often possible to find a service that offers same day transfers. In fact, some can be immediate, like with Cashero where transfers between users are instantaneous. While the speed of transfer is dependent on the location, currency, and amount, it’s a definite plus to transferring money electronically. You may have to pay for the quickest service at some companies or banks, especially when making international transfers.
Ease
Another advantage of transferring money electronically is the ease of doing so. Many of the above ways of transferring cash can be done from the comfort of your home. Apps and websites are becoming increasingly more user friendly so even a complicated or large transfer can take a couple of minutes at most.
Safety
Transferring money electronically is just as safe as giving a person hard cash — if not safer — because it minimizes the amount of money you as an individual has to carry around. Reputable online financial institutions have to make their online technology as safe as possible to protect against any criminal activity. Given the growing amount that we are all banking online, it’s in their best interest to ensure that they provide a robust and safe service to save themselves from any reputational damage caused by a data breach.
Disadvantages of transferring money electronically
Of course there are going to be disadvantages to some of us for transferring money online. While not all of these disadvantages will apply to every individual, it’s worth bearing them in mind to see if it’s possible to mitigate against them and any risks that occur because of them.
Technophobes
Transferring money online requires the use of a computer. Not everyone will have the level of expertise to make banking online or making transfers easy. While often all this takes is a little bit of practice, it can be massively off-putting to those who do not use a computer or smartphone very often. However, many companies who offer transfer services will be doing their utmost to ensure their websites and apps are as intuitive and user-friendly as possible.
Generational distrust
Perhaps those that will find using the internet to make transfers the most difficult are older generations who are used to talking to a person face-to-face for all their banking and transfers needs. Some may not be happy with using online services due to a distrust that comes from lack of knowledge, but also a misplaced misconception that online services are far more likely to go wrong. This can be a difficult mindset to change and for that reason, many bricks and mortar banks or financial institutions still exist to help these individuals make transfers.
Fraud
Despite all the security measures that banks and transfer companies put in place to protect against online fraud, it’s still possible for online criminal activity to occur. However, it’s important to compare the risk of that fraud to the risks that making transfers in traditional ways may have. For example carrying around a lot of cash to make a deposit is not the safest thing to do and far more prone to theft. Any money stolen from a person physically is difficult to recoup from insurance companies.
Transferring money – key takeaways
Given that transferring money online is so easy and quick, it’s a good idea to help minimize the amount of risk involved when you make a financial transaction online. The use of virtual private networks or VPNs when you are online is a good method to help protect yourself against hacking. VPNs encrypt all the data that you send and thus make it very difficult for hackers to read the information you’re sending, making it unusable.
Using a secured network is also good practice when it comes to making financial transfers online as it helps to stop hackers infiltrating your connection and should also stop them from being able to get hold of any data you are transmitting — whether it’s encrypted or not.
Strong passwords and good password management is also key when it comes to keeping yourself safe online, particularly when making transfers and transactions. Try to use a different password for every account so that you do not leave yourself vulnerable should an online criminal get your log in details.
Finally, use trustworthy businesses to make your transfers. Even though speed is so often of the essence when it comes to online transfers, it’s more important that you stay safe online at all times. Using reputable firms like Cashero to carry out your transactions is one of the best ways you can do so.
Content Disclaimer:
As of the date of publication, the information contained on this page is deemed to be factually accurate for all terms of conditions, features, and fees. Changes made to Cashero’s terms of conditions, features, or fees after the publication of this content may not be accounted for.
App Disclaimer:
The Cashero App is now available for download in both the Apple App Store and Google Play Store, though not all features are currently functional. Cashero has not yet officially launched.
