Whatever the pitch, most money transfer companies goal is to get your money; money transfer services comes with lot of hidden fees, dubious exchange rate and more.
The faster you need it there, the more you will pay.
Many banks and money transfer companies offer you little or no pricing detail. Banks and other fund transfer companies offering low fees or no commissions often hide their true costs with poor exchange rates.
Most money transfer agencies partner with banks and retailers to give recipients the option to pick up money from various locations. Some of the newer players are offering lower-priced money transfer service that could undercut the traditional players in the industry.
Often, the millions of people, who don’t have bank accounts are forced to use wire services offered by money transfer companies such as Western Union & MoneyGram that charge steep fees for moving money to family or friends.
Normally, funding a transfer from your bank account is the least expensive option and also the slowest one, while debit and credit card transactions always incur higher fees.
Fortunately, it’s still possible to find best exchange rates, reasonable transfer fees, better delivery options, and transfer methods.
New Ways of Money Transfer : Mobile Payment App & Digital Wallet
As consumers become increasingly accustomed to splitting dinner checks, sharing a uber or paying for their coffee without touching paper money, everyone are rushing to stake their claim on the wallet of the future – P2P (peer to peer) payment apps and possibly save you money doing it.
Will the new P2P apps like Circle Pay, Cash App, Zelle, Venmo, Popmoney, Square Cash, Google Pay (Android Pay and Google Wallet), Snapcash and Facebook Messenger and Apple Pay kill the traditional money transfer industry.
Which one you should use depends on what you need it for, Not all P2P Services are created equal. Whichever service you choose, watch out for delays and fees.
- Most apps charge 3 percent fee when using a credit card.
- Google Pay is one of the cheapest services on the list
- PayPal is the most expensive, if you don’t want to connect the service to your bank account.
- Venmo has grown a lot more popular over the past few years.
- Square Cash can only be used with credit and debit cards.
- If you’re an iPhone user and intend to mainly send or receive money from other iPhone users, then Apple Pay Cash is your best bet.
Here are some of the best known money transfer companies with wide networks to meet most needs.
Venmo : Payment app for millennials
Venmo is a mobile payment service owned by PayPal and is used for sending cash quickly between friends, relative, roommate, or anyone else money for anything. You can easily split the bill, cab fare, or much more.
Pay friends and family with a Venmo account using money you have in Venmo, or link your bank account or debit card quickly.
A linked credit card, debit card or checking account is needed to use venmo service. Besides initiating payments, consumers can charge friends or receive payments that can then cashed out immediately to a bank account.
How Safe Is Venmo And Is It Free?
Limited to united states, Connected through email & phone, so if your email or phone is hacked, your Venmo can also be hacked.
Venmo’s third party digital wallet is not insured by the FDIC.
Funds exchanged on Venmo can either be stored in the on-platform Venmo balance for later use on the platform, or cashed out to a bank account, which takes a few days to process.
People are able to cancel payments and if you sold something to a stranger, you may never receive your money.
For the most part, Venmo is a free-to-use platform. There is a 3% fee that is not waived for payments by credit card. Some fees are charged for Instant Transfers (10 minutes). Check the latest fees.
Western Union (WU)
Transfer Methods : Online, App, Phone, Agent, Bank Account to Bank Account, International Money Order
- Send and transfer money to more than 200 countries.
- Money in minutes, Send by debit card for fast cash pick up at an agent location.
- Transfer directly to a participating bank account or for cash pick up.
- Send money on the go with the WU app.
- In select markets you can have the money transfer loaded onto a Western Union branded prepaid card.
Is Western Union the best way to transfer money?
What are the pros and cons of their service?
- Western Union charges are extra 10-15% for its brand value. Expect to pay more in fees to transfer with Western Union.
- When it comes to speed for bank-to-bank transactions, Western Union is not the fastest of the herd – its risk management capabilities still lag behind Xoom, so it usually takes longer.
- Wait time of one to three days for funds to arrive if you pay with a credit or debit card online.
- WU Exchange rates can be nearly 5% more than the market rate, you have cheaper online options.
Zelle : Banking App
Zelle, a service that allows bank customers to instantly send money to their friends and family.
Unlike Venmo, money transferred using Zelle moves directly from one bank account to another.
Bank of America, BB&T, Capital One, Navy Federal Credit Union, JPMorgan Chase, PNC Bank, Ally Financial, US Bank and Wells Fargo.
Zelle is a fast, and easy way to send money in minutes to your friends and family.
Zelle alerts the recipient a text or email indicating there’s a payment waiting for them, along with a link to accept the payment. If the recipient’s bank is a participating zelle partner, the recipient simply needs to register for the service through their bank’s website or mobile app with an email address or phone number.
What are the disadvantages of Zelle banking App ??
Zelle’s quickness in transferring funds also makes it a prime target for fraudsters & criminals.
Transfer Methods : Online, Bank Account to Bank Account
PayPal operates in more then 200 countries and has the flexibility to make payments in more than 100 currencies.
- No transaction fees.
- It’s free to send money domestically as long as you’re funding the money transfer from your bank account or PayPal balance.
Is Paypal the best way to transfer money?
What are the pros and cons of PayPal service?
- Unfavorable exchange rates can make them an expensive option for large transfers.
- Some banks require a transaction fee when you transfer funds from your PayPal account to your bank account.
- PayPal is one of the common targets of phishing and scams, just be more vigilant and extra cautious to avoid being a victim of such schemes.
Is it cheaper to transfer money internationally through PayPal?
Xoom is an affordable alternative to other international money transfer services.
Send cash for pickup at thousands of partner locations around the world.
Have cash delivered : Send money directly to your recipient’s door.
The major advantage to Xoom is the true cost of money transfer : The service claims to offer lower prices on international money transfers than Western Union and MoneyGram.
If for any reason your money is not received by your recipient, it will refund your transaction in full.
So what about the cons?
- Lengthy Processing Times
- Higher markups on exchange rates than a lot of competitors.
Walmart offers money transfer services to more than 190 countries, thanks to its partnership with MoneyGram.
- Funds can be picked up at any Walmart Store in the US or Puerto Rico or sent to any one of MoneyGram’s agents around the world.
- Money transfers in as little as 10 minutes.
- Wide variety of transfer options, including debit card, credit card or bank account.
Is Walmart the best option when transferring money?
Walmart has a maximum sending limit of $6,000 per transaction.
Transfer Type : Credit Card/Debit Card, Cash, ACH Transfer.
- Transfer money using your bank, debit or credit card.
- With multiple payment and delivery options, your funds can be deposited into your recipient’s bank account overseas, delivered by courier (in select countries) or picked up from one of Ria’s worldwide location.
- Ria’s exchange rates are better than most money transfer companies and banks.
Is Ria the best option when transferring money Overseas?
- Ria’s maximum daily transfer limit of $3,000 may deter users, who need to transfer larger amounts.
- Prepare to pay a transfer fee when you send money overseas.
MoneyGram is one of the largest money transfer provider after Western Union.
Same day transfers are possible, even with bank accounts
The exact fees varies by destination and other factors such as whether you pay with a bank account or a debit or credit card.
What are the disadvantages of MoneyGram?
MoneyGram’s is bit more expensive than what competitors charge in direct comparisons of the same services.
Unfavorable exchange rates
Bank deposit arrival days, exclude bank closures & holidays; processing times vary with some banks.
Other Money Transfer Companies
OFX, World First, XE, Transferwise, World Remit, Sharemoney, Travelex, TorFX, Currencies Direct, Currency Online.
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