In our tech-savvy world, you can do nearly everything online. In business, we conduct meetings online, pay our taxes, and even hire new team members. When we travel across the globe we keep in touch with family over video chat or ask for restaurant suggestions online. With so much of our lives taking place online, transferring money has taken to the internet as well.
Money transfers can happen between businesses, between customers and businesses, or between personal accounts. There are many different types of accounts that vary in regards to the time it takes to transfer, fees associated with a transfer, and other similar features.
Bank Transfer
One of the most common, mainly because it has been around the longest, is a money transfer via the bank. Your bank offers to transfer between accounts both within your bank and to accounts outside your bank. When you send someone your routing and account number to receive a payment, a money transfer via your bank is taking place. Often times fees are associated with these transfers, however, there are some exceptions depending upon your bank and the reason for the transfer.
Third Party Transfer
A third party transfer takes place when money is transferred by another company who has had permission to access both your bank account and the other parties bank account. For example, Paypal and Venmo are both money transfer companies that specialize in transferring money from one bank account to another.
If you are using a third-party service to transfer money for business purposes, you are likely to encounter a fee. This fee may be a flat rate per month or a percentage of each transfer. If you are using a third party service for personal use you are likely to not encounter any fees. These transfers are typically smaller than those made by businesses and less frequent.
Money transfer services can make things much simpler and faster. No longer do you have to wait for a check to clear or do tricky math at a restaurant while you calculate everyone’s bill. Simply download an app and send a request, or wait a few hours for your money to appear in your account!