A money transfer service lets you send funds electronically to people who don’t have bank accounts or use different kinds of currencies. This type of transaction can be done via a mobile app, online portal, or brick-and-mortar locations. To start a transaction, you usually need to give the sender some personal information and your financial details. You may also need to select the destination country and currency. Generally, you can pay in cash or with a debit card. You can also choose to have the funds delivered directly into the recipient’s bank account or mWallet.
If you’re planning a larger transfer, it’s important to look at the fees involved. The cheapest services are typically those that charge flat rates rather than per-transaction or percentage fees. In addition, you should take the exchange rate into account when comparing fees. A good place to start is a comparison tool from Google. Then check how the provider’s rate compares to midmarket rates and the other services you are considering.
You can also save on fees by using a money transfer service that does not require a bank account. This includes services such as Xoom, which is available in more than 160 countries. Its website uses security encryption to keep your personal and payment information safe.
Another way to save on fees is to use a virtual currency, such as Bitcoin. These digital currencies aren’t backed by any government or central bank and instead are traded on the internet. People can buy and sell virtual currencies for cash, and they can also be used to pay for goods and services. However, the value of a virtual currency fluctuates and it can be difficult to determine its actual worth.
Many companies that offer money transfer services have online or mobile apps that make it easy to initiate transfers from a bank account or other financial source. You generally need to provide the name and address of the recipient, a telephone number and/or email, and the six- or eight-digit sort code of the person’s bank account. If the recipient is a business, you may need to provide the company’s business registration number or tax ID number.
Some companies, such as Western Union and Xoom, have locations in some countries where they can deliver cash to people who do not have bank accounts or cannot access them for other reasons. They can also send the funds into an mWallet, which the recipient can access through an app linked to their mobile phone. In either case, the money is delivered in person or can be picked up at a cash-dispensing location.
Other money transfer services can be accessed in-person or by calling a customer service representative. These options are often the quickest, and they allow you to send large amounts of money quickly. However, they may be less secure than some other methods. Some of these companies may have a limit on how much you can transfer at one time.