What is a money transfer? What is a wire transfer? What is an electronic transfer? These three are the same. In this article titled What is a Money Transfer, we will discuss the funds transferring from one end to another through a network of computers administered by transfer service agencies and banks across the world. In brief, money transfer or wire transfer is sending and receiving of money from one account to another without the need for the actual exchange of physical money. The cash is settled electronically.
Also known as wire transfer or electronic transfer, the money transfer allows the movement of money from one location to another across the world through a secured network of computers without exchanging physical cash. Two parties are involved in the transfer. One is the sender and the other is the recipient.
Money transfer is initiated from one financial institution or bank to another on behalf of the sender, who pays the amount to be transferred along with the transaction fee. The sender needs to share the name and bank account number of the recipient to the remitting bank or financial institution.
The remitting bank or the financial agency sends messages to the beneficiary's institution or bank along with payment instructions by using a secure system like SWIFT or Fedwire. The recipient institution or bank deposits own funds into the account of the beneficiary. The two later settle the payment separately.
Money transfer has become an important tool for many who want to send money securely and quickly between two different locations. Even though caps are levied on the volume of transfer, but the limit is fairly high. Business houses can transfer a large amount of money.
Basically, money transfer is categorized into domestic and international types. The two can be inter-bank or intra-bank. Inter-bank means transferring within the same bank and intra-bank refers to transfers between two different banks or institutions.
Money transfer is safe and secure. If a legitimate money transfer service is used, the risk is almost nil. The sender, as well as the recipient, needs to provide their identity proves to avoid an anonymous transfer.
The Office of Foreign Assets Control monitors the international money transfer originating in the United States. It is an agency that operates under the U.S. Treasury. It ensures the transfer is not used by money laundering networks or terrorist groups. Moreover, it is tasked to prevent the money from being transferred to those countries which are subject to U.S. government sanctions.
Money transfer facilitates sending money from one account to another without the need for physical cash exchange. The process is fast and secure. The process is best if the sender and recipient are far away, even if in two different countries.
Money transfer is generally secure and safe if the fund is not sent to an anonymous account. A legitimate service identifies both the sender and recipient through their identity proves before completing the process. Monitoring agencies of governments ensure the money is not transferred to any terrorist group or money laundering network.
Money transfer is safe, secure, fast and flexible. It is a process to transfer funds from one location to another electronically. It is a process that involves no exchange of physical money. It saves time and helps overseas businesses to flourish.
In this article titled What is a Money Transfer, we discussed the meaning of money or wire transfer, the advantages of it and the associated risks. It is always suggested to use legitimate service agencies to send or receive money either domestically or internationally.
Adam Rosen - Lead financial writer