If you need to send money online to a child studying abroad or split the cost of a vacation, the best place to do it is online. Now, using various platforms, you can send money anywhere in the world in a matter of seconds. However, you must choose the right service to avoid paying unreasonable commissions and long delays. This guide will walk you through everything you need to know when sending money online.
Why can I send money over the Internet?
The digital revolution the world has gone through over the past few decades has made us more connected to each other than ever before. It is now possible to connect with someone on the other side of the world in just a couple of clicks, and the money follows in the same direction where the digital world is going.
International money transfers is a fast growing and competitive industry helping people send money abroad quickly and securely with low fees. As digital payments become more prevalent, so has the demand for affordable international online transfers.
Some of the more popular reasons why you might decide to send money online are:
1. Money transfers. Sending money to your home country is one of the most common reasons for international money transfers.
2. Payment of bills. You may have utility or tuition bills and must be paid both at home and abroad. Payments can be repeated, you may need to transfer money regularly to pay these bills.
3. Shopping abroad. As e-commerce becomes more popular, you have access to products from all over the world. You can buy the product you like wherever you want and pay through an online transfer. People make high-value purchases, such as real estate purchases, and pay for them using money transfers over the Internet.
4. Sending money to friends and family. As more and more people live and work away from home, in their home country or abroad, the need to digitally send money between close friends and family is being met by many online money transfer services. You may need to send money to loved ones for various purposes on a one-time basis or on a regular basis. Online transfers are the best and usually the cheapest way.
Pros and cons of sending money online
There are different ways to send money, such as money orders or traveler’s checks, but these days, online transfer is the most effective. There are many advantages to sending money over the Internet, but it is important to consider the possible disadvantages as well. So let’s have a look at the pros and cons:
pros
- Convenience. It is very convenient to send money online. You just need to log into the provider’s platform or application and arrange the transfer.
- Price. Most internet money transfer providers can send your money abroad for lower fees than traditional banks.
- Speed. Online money transfers are fast. In most cases, they disappear instantly or on the same day.
- Global coverage. The biggest advantage of online money transfers is that you can send money anywhere in the world.
- Security. Banks and money transfer companies have multiple levels of security to ensure that your money reaches the recipient.
Minuses
- Fees. It is always important to check the fees that will be charged when transferring money over the Internet to make sure you do not run into “hidden costs”.
- Competition. There are many online translations available these days, so finding the one that’s right (and most affordable) for you is a challenge in itself.
- Irreversibility. Due to the nature of online money transfers, many cannot be reversed. If you made a mistake when filling out the recipient’s details and sent the transfer, you may not be able to cancel the transaction, because the money will be credited to the recipient’s account before you can make a request to cancel the transfer.
Access 24/7
Sending money over the Internet has many benefits, including the added convenience of accessing money and making transfers 24/7 through the app.
“Hidden cost”
Hidden cost refers to the additional costs associated with transferring money, which usually translate into poor exchange rates or fees charged by the provider when sending money overseas. Always get the full translation price in advance so you don’t spend more money than you expect.
3 main ways to send money online
You can send money online through your bank or money transfer provider . There are money transfer apps that have made sending money, including international, even more convenient. Choose the option that works best for you .. If you are new to money transfer, read our guide to get started.
1. Internet banking
Using a bank is a convenient way to send money over the Internet. Usually, you just need to specify the recipient’s details and the desired amount, and the bank will do the rest for you. Online banking is a popular choice for money transfers simply because it is simple. You don’t need to create and verify a new account with a third party provider, and many people trust their bank to keep their money safe.
However, it’s worth noting that the convenience of online banking often comes at a price when sending money overseas. Banks are known to have much higher fees and exchange rate margins than alternatives, and a bank may not be the best choice if you want a cheap deal.
Convenience cost
While online banking is a simple solution for international money transfers, it is often more expensive for sending overseas when compared to using a specialized provider.
2. Money transfer companies
In terms of cost, money transfer providers are almost always the best way to send money overseas via the Internet. Nowadays there are many specialized money transfer companies offering international transfers at lower prices and with fast transfer times. The transfer money will reach your recipient within hours.
Such providers are regulated by the relevant financial authorities of the country in which they are registered. Most companies have local bank accounts or P2P cash reserves in the countries in which they operate, which significantly reduces transfer costs and times.
3. Mobile applications
This option is not a stand-alone method of sending money over the Internet. This is a more convenient way to access the other two methods from this list. Thanks to mobile applications, online money transfers have become even more convenient and efficient. Many money transfer companies and almost all banks have an Android and iOS app that you can download to your smartphone and use to transfer money on the go.
Save time and money through online transfer providers
The vast majority of online money transfer providers have 24/7 access via the app and can offer much more competitive rates than traditional banks. We compare all the providers on the market to find the best deal for you to send money abroad!
How do I send money online?
The process to send money online will depend on the online money transfer way you choose, but some basic steps are similar. In general terms, the following awaits you:
1. Choosing a provider of money transfers via the Internet. The first step is the most important in the process of sending money over the Internet. The selected transfer provider or bank will determine how much you pay for the transfer and how quickly the money will be credited to the recipient’s account. When choosing a provider, in addition to fees and transfer speed, you should consider the available payment and delivery options. You can read our in-depth guide to choosing the right money transfer provider for your transaction to help you make the right choice.
2. Registering an account on the website or application of the translation provider. Registration is usually free and you only pay for the translation. You will need to provide your personal details, bank account details and proof of identity. After you sign up, the provider will verify your account. This can take from a few minutes to a couple of days.
3. Data on the money transfer. After the account is approved, you can enter the transfer details. You will need to pay for the transaction using any of the supported methods such as debit / credit card or bank transfer. You will be required to provide the recipient’s details, including name, contacts, and bank account details.
4. Translation. You will be asked to confirm all the details and complete the transfer. At this stage, you will be able to estimate the exact commission and transfer speed. Once you send funds, you will be provided with a transaction number that you need to keep for future reference.
5. Tracking the transfer. You can use the transaction number to track the progress of the transfer. If there are delays, you can contact the provider.
How much does it cost to send money over the Internet?
The cost of sending money over the Internet depends on many factors, including the method of sending, where the money was sent and delivered, the currencies used and the amount transferred. There are two main types of costs associated with transferring money over the Internet: transfer fees and exchange rate margins.
Below is a detailed explanation of these fees.
- Fixed transfer fee. Most banks and specialized money transfer companies charge a flat transfer fee. For domestic shipments, it is usually very small, but can increase significantly for international money transfers. This fee is often higher in the case of a bank transfer, because the bank transfer is done via the SWIFT network and each participating bank charges a fee separately.
Many money transfer companies are using better and more efficient technologies and systems that can significantly reduce costs. Usually, you can pay a commission of $ 15-45 for a bank transfer, and if you choose a money transfer company, the commission can be $ 2-20.
- Exchange rate margin. When making an online transfer, banks and providers will charge a margin on the exchange rate. The amount of this margin can vary greatly depending on the service used.
As a rule, money transfer services have much lower margins than banks. Some providers add a small markup (0.5-2%) without a flat fee, while others have a flat rate with no markups on the exchange rate. Some charge both, however, in almost every case, remittance providers will be cheaper than banks, which tend to have much higher exchange rate margins.
- Other fees: When sending money online, other fees may apply depending on the method used.
If you choose to pay with a credit card, you may have to pay an additional cash advance fee, especially if you are transferring money to another currency.
You may have to pay some fee to select a specific shipping method, such as picking up cash or delivering cash to your home. The recipient may have to pay a fee to receive an international money order.
How long does an online translation take?
Most online transfers are instant or same day, but in some cases it can take up to 5 days to complete. Transfer times are usually shorter for frequently used currency directions. Also, the term will depend on when the transfer was made: on a working day or on weekends / holidays.
Can I send large amounts over the Internet?
Yes, you can send almost any amount over the Internet as long as you choose the right provider. When making large purchases, such as buying a vacation home abroad or paying for business expenses, providers that specialize in transferring large amounts of money are best for you, rather than companies that focus on small items and have restrictions on the amount of money transfers.
By comparing options and choosing the right online money transfer service or bank, you can usually save on exchange rate margins when transferring between different currencies.
Is it safe to send money online?
It is completely safe to send money over the Internet. You just need to make sure you are using a trusted provider and take steps to avoid fraud. Most money transfer companies are regulated in the countries in which they operate.
Moreover, there are several levels of security to ensure the safety of your money during transfers. However, always be on the lookout and protect your personal information to avoid falling into the hands of online scammers. You can read our guide on the safest ways to send money online to help keep your money safe.
What are the best money transfer providers for sending money over the Internet?
Our comparison tool makes sending money online easier than ever. With the transparency, simplicity and cost-effectiveness at the heart of our brand, we look at fees, transfer times, security, and many other characteristics of each money transfer provider to help you find the service that’s right for your needs.
Synopsis: Best Ways to Send Money Online
Online money transfers have made sending funds, paying bills and shopping overseas extremely easy – you can do it with the click of a button. Sending money over the Internet is a safe, convenient and fast way to transfer money anywhere in the world. However, online money transfers are usually irreversible and can be expensive if you don’t choose your transfer provider carefully. Always review and verify your details before submitting funds.
You can send money online through banks and specialized money transfer companies. Often the provider of your choice will have a useful mobile app. Banks generally charge higher fees and exchange rate margins than online money transfer companies, so it’s always worth comparing options to make sure you’re getting the best deal. Our helpful money transfer comparison tool will help you do this in minutes.
Once you have chosen your provider, you just need to register an account, pay for the transaction and complete the transfer. Most transfers take place instantly or on the same day, but for less common destinations, transfers can take up to 5 days.
