9 Ways to Make Life Easier with Online Money Transfers
Technological advances in recent years have made it possible for anyone to make online transactions including shopping for different types of products as well as sending money to loved ones across international borders online. Online money transfers are nothing short of truly valuable technology. Transferring money through the internet makes it possible for someone to make payments or send money without the use of physical cash.
Financial institutions offer several methods of transferring funds online. Each one provides its own system of exchange rates and fees that depend on several factors. The important thing is that the recipient of the funds can pick up the money without difficulty.
e-Commerce Payment Method
This method is ideal for people who make online purchases using their credit cards through drop shipping sites. The user sets up an account that allows him to make transactions. Each successful transaction requires a certain fee. Online money transfers that use this method need to follow a set of guidelines regarding the fees to pay, the acceptable currency, as well as the actual amount of cash involved.
The advantage that you can gain from the e-commerce payment method is the fact that signing up on the website is simple, which is due to an easy-to-follow procedure. In addition, the guidelines are outlined in detail. The fact that the online account is linked to a credit card gives better protection to a buyer since banks have strict rules regarding the use of credit cards.
Another form of e-commerce payment method is one, which does not require the use of a credit card, but does require a credit check before the approval. Prior to making an online purchase, a user agrees to the terms set by the website after giving the details of his birthday and Social Security number. The transaction is done when the said process is finalized, after which the bill is delivered to the user.
e-Check Payment Method
Transferring of funds that use this method involves getting a certain amount from one’s checking account without handling the actual check and without having to mail it to the party on the receiving end. The user gives his authorization to his bank’s site that his funds are to be transferred to the intended party; that is, after he provides his name, account number, and the amount to be transferred. To protect the user, the check involved becomes void and gets shredded after the transaction is completed.
Bank Account Methods
Debit Card. Preferred by most online sellers, the debit card payment method allows a certain amount to be drawn directly from one’s bank account to transfer to a seller’s account.
Bank Transfer. The procedure involved in online money transfers that use this method is similar to the debit card payment method. The only difference is that it does not require the use of an actual debit card.
Online Banking ePayment Method. The buyer does not need to provide his personal data such as account numbers when using this payment method. The seller’s bank receives the funds from the buyer’s bank after the latter authorizes the transaction. Said authorization is done on the website of the seller’s bank.
This is where the buyer should log in upon making his online purchase.
Electronic Bill Payment. Fund transfers involving the payment of online purchases as well as credit card bills can use this method.
Mobile Payment Method
The mobile payment method allows the payment of a wide array of products and services. Online purchases are billed directly to one’s mobile phone, which are included in one’s phone bill. This means that credit cards and checks are not necessary in this payment method. The user’s phone bill serves as his single monthly statement for phone charges and online purchases.
This new payment method is made possible by the communications technology specific to mobile phones.
SMS with certain keywords embedded on them and received by a particular mobile phone number allows for online money transfers wherein a user instructs the transfer of a certain amount to his phone bill. Upon payment of the bill, the said amount is then transferred to party who should receive it. This method offers the advantage of strict measures that protect the user from chargebacks and cases of fraud.
e-Mail Money Transfer Payment Method
Online money transfers that use this method involve the funds transfer between a user’s account and an online bank service’s account by e-mail. Since the only thing that happens through e-mail is the notification of the transfer, money transferred using this method is safe.
The actual funds transfer is processed by banks through networks that have already existed for many years and which they have always used. To reduce your risk of dealing with phishing scams via email, it is crucial to be cautious in all transactions, especially in cases wherein you received an unexpected fund from an unknown sender.
Social Media Money Transfer Method
Users of a popular social media network can make online money transfers through the messaging system within the said network, allowing for the convenient yet secure way of funds transfer between friends. This method can change the way people all over the world will pay for their online purchases.
The convenience provided by the different online money transfer methods nowadays is always a welcome opportunity by their users. It is also necessary to exercise caution, as with all other transactions involving money. Research of the websites and banks are in order before actually using any of the new payment methods for online money transfers. The convenience they offer to the user comes with a number of potential risks, including hacking, phishing, and identity theft.