There are a variety of reasons for which you might want to send money online instantly. In this post, we are going to discuss the different ways of doing so. You have tons of options for this type of transaction, so it’s helpful to know what they are before making your selection.
Sending money domestically within your own country is typically much easier than sending it internationally. However, we’ve done the research for you and developed a resource that explains the different types of transfers and how they are utilized. Keep reading to find the best options for you.
Types of Money Transfers
There are several different types of transfers that you might encounter, and each one can be handled in different ways. In this article, we will only focus on two. Here are the two most common types of transfers in the marketplace today:
Peer to Peer Transfers
These types of transfers occur between two individuals, such as friends or family members. It can also be used when you purchase something at a garage sale, classified ad, or other such platform. It is generally a simple transaction and is often completed by the use of a mobile app that is used by both parties.
Peer to peer transfers are quick and easy if you use a cash app. Some of the most commonly used cash apps are PayPal, Zelle, and Venmo. These are great for smaller transfers, but not necessarily for transfers of more than $1,000.
B2B Transfers
Business to business transfers are often completed in much higher amounts. When purchasing products or services from another company, you have options for how to pay. Some companies still use paper invoices and checks, but many companies are moving to instant money transfers instead.
Some of the ways in which B2B transaction are completed include wire transfers and ACH payments. These types of transfers can take longer than cash apps, but are generally faster than paper checks or money orders. Depending on the size of the transaction, you may also be able to use the same apps that are used for peer to peer transactions.
How Much Does It Cost to Send Money?
As you might’ve guessed, different cash apps and platforms have different fee structures. Finding the best one for your transaction is not always a straightforward process, because it depends on a variety of things. Here are some elements of the transaction that could affect the fee structure and process:
- International vs domestic
- Countries involved in the transaction
- Amount of cash being transferred
- Timeline for the transaction
Each of these variables will change the fees and processes involved in the transfer. For example, some cash apps will allow free transfers within your country, but not internationally. Other apps will charge fees based on the amount of money you’re transferring, so it’s smart to know what the fee structure is before sending a large sum.
Ways to Send Money
Let’s take a closer look at several available options.
Peer to Peer Cash Apps
These are third-party apps such as PayPal, Venmo, Square Cash, Apple Pay Cash, and more. They are convenient ways to send money to others if you both have the same app on your phone. Many people have more than one of these apps, which allows them to send and receive money with more people.
The two downfalls to these types of apps are the following:
- They’re not instant. If you want to transfer the money for free, you typically have to wait a few days for it to be processed. You do have the option to pay a fee for instant access to the funds, and that can range from 1-3%, depending on the app.
2. You may have to download a new app onto your phone. If the person you’re transferring money to or from has a different app than you, one of you will need to download a new one so they can communicate with one another.
Wire Transfer
A wire transfer is generally one of the fastest ways to send money. However, it can also come with a pretty stout fee attached to it. Those fees can range from $10-$50 and sometimes more, depending on the amount of the transfer. You may be charged a flat fee for the transaction, or you could be charged a percentage of the amount being transferred.
ACH
If you want to complete a wire transfer, but you don’t want to pay the associated fees, you could consider an ACH transfer instead. This is a low-cost and sometimes free service that will transfer money straight from your account to the recipient’s account. It can take several days to complete, which makes it a less attractive option than the wire in time-sensitive situations, but if you don’t mind waiting a few days, this is a great way to send money.
ACH transfers are also an excellent option for recurring payments. If you’ve setup your bills on auto-pay, for example, you are likely using an ACH service that will directly debit your account to pay the balance owed each month. The transactions can take a few days to process, but they are simple and easy to setup.
Load Debit Cards
Some companies offer a pre-paid debit card account that allows you to transfer money between cards from a master account. You could get two cards, send one to your loved one and keep the other with you. Each time your loved one needs money, you can transfer it onto their card for them to use just like a traditional debit card.
This is a great scenario for kids going off to college, or overseas on a study-abroad program. It allows the owner of the bank account to keep control of the funds, but also gives the owner peace of mind that their loved one can receive money if they need it. There are generally usage fees or monthly fees associated with these cards, so read the fine print before signing on!
Money Order
A money order is a paper check that must be purchased at a local vendor such as Walmart or Western Union, and must be physically mailed to the recipient. This is obviously not a fast process, especially if the recipient and sender are in two different countries. However, this is a fine option for people who do not have access to a bank account, or prefer to send money offline.
Frequently Asked Questions
Here are a few more items to consider before sending money.
Can you send large amounts of money?
Yes. You can send as much or as a little as your chosen method will allow. Most wire transfers, ACH transfers and money orders have an unlimited amount that can be sent. Peer to peer cash apps and money transfer companies may have limits, so be sure to check that out and make sure they allow you to send what you need to send.
Can you send it anywhere?
Yes. Restrictions on where you can send money are pretty rare these days. Most banking institutions have adapted to international business practices and allow this service. Keep in mind that sending money overseas will almost always cost more money than a domestic transfer. It’s not impossible to do, it just may cost more.
How do I speed up my transfer?
Like a lot of other things in the world, money talks. If you want your transfer completed faster, you can pay an extra fee for that. Here are two examples of this concept:
- A wire transfer costs a fee, but happens within minutes. An ACH transfer is often free, but can take several days.
2. Accepting a payment through Venmo is free, but transferring it to your bank account may not be. If you want the money instantly, you can pay a fee. If you don’t mind waiting a few days, it’s free.