Online money transfer is the use of the internet to instantaneously move money for the purpose of making payments or account transfers. This service incorporates speed, convenience and security in money transfer. It cuts on the demand to use papers or even make visits to the bank in order to send or receive money. It however requires registration of an account then activation of the account which may cost a little fee depending with the vendor. Once this is achieved, just a computer with internet access is required for this purpose.
The main reason for online money transfer services is for the ability to have fast transfer of money. For any individual looking for speed regardless of geographical distance has to make use of this service. It makes transactions instant unlike other forms that require paperwork to be filled for identification purposes from both the sender and receiver. They also happen to be cheaper. This is brought in by the high demand for this service and its ability for not incorporating too much paperwork. It only needs the availability of an internet connection.
People who work online are the ones in most need of online money transfers. The money transferred could be payments for work done, purchases of credits on websites that offer various services such as plagiarism checking and grammar correction, paying for advanced work software among others. Such money is shifted around between the owner, a transferring agency and the various recipients. The transferring agency has the capacity to hold the money in escrow and move it as requested by the owner to recipients along with instructions on what to do with the money. On their part, the recipients of the money receive it and then act according to the accompanying instructions.
Online money transfer can be integrated with bank accounts. This brings in convenience in carrying out transactions. Money can easily be moved through this service to conduct business from the comfort of your home. This means the time consumed having to visit a bank each time money is coming in and out will be eliminated. Money is directly credited and debited into your bank account just by making a few clicks. It also provides better rates in foreign exchange. This ensures you gain more by transferring the money directly to your account.
Some receiving organizations in online money transfers are banks and other institutions that can give the owner the money in form of hard currency. There are also other players in the end of the online money transfer chain who operate as individuals or small companies. These smaller players have faster remittance services but they charge significantly more than the banks and other well-established institutions. The smaller players are handy for people who want their money quickly since they do not have waiting periods that are put in place by banks to prevent money laundering.
Risk has to be eliminated when it comes to handling money matters. The use of emails in handling money has been replaced by online money transfer services. This is as a result of mail being intercepted which could lead to bank accounts being drained through the use of the routing number and account number. The money sender requires guarantee that the money will get to the recipient. Transactions made in online money transfers are recorded. They can then be used as reference point on how money is spent and gained.
However, there are limits set as to minimum and maximum amounts of funds transferable per transaction or per a certain period of time. Limits help in regulating the circulation of money in the accounts and reduce money laundering. Online money transfer has however proved it is here to stay. It has become one of the most sought out services enabled by the internet.