An Overview on the Most Popular Methods of Money Transfer
Money can certainly be considered as one of the most important inventions made by mankind. It has always been the force that has helped trade to develop. Barter system was what people relied upon when the concept of money was not there. Goods were exchanged for goods in this system. The requirement for getting money transferred from one place to another occurred when it was accepted as a source for trading.
People have always looked to find better solutions in having their money transferred from one part of the world to another or within the country. The urge for transferring money led to evolution and development of many money transfer services. The expansion in global economy and the increasing tendency among people to migrate from one place to another are other factors that led to the emergence of these services.
These days, one can avail many different media for transferring their money to other locations. Each method of transferring money has benefits of its own. There are many methods that are used for transferring money these days, and they include money order, wire transfer, bank draft and internet money transfer. The effectiveness of the medium of transfer depends a lot on the convenience and need of an individual.
Medium of Money Transfer
- Money Order– It is an order of payment that is generally issued and is payable at a post office or bank. The sender of the money requires filling up a form where the person needs to mention the amount that will be sent, along with name and address of both the sender and the recipient. There is also a provision for the sender to write down a message on the form. One of the key advantages that one can avail by sending money order is that the sender does not require having a bank account. Services for sending money orders internationally are also available in certain countries. Overseas money order are similar to the regular ones, the only difference being is the former allows you to make your payments overseas which the latter does not.
- Wire Transfer– Before the banking systems got computerized, a need was felt by the world to have a safe method of transferring money from one place to another. This led to the emergence of wire transfer, and since then it has been one of the most used methods of money transfer. This medium is considered to be one of the safest as the financial institutions or banks verify the account details of both the person sending the money and the person receiving it. Therefore, neither of them can afford to be anonymous.
- Bank Draft– It is also known as Demand Draft. A bank or a company of money transfer can issue a draft. It is cashable in a bank. Large businesses generally opt for this medium of money transfer. The credibility and clearance is a surety in case of this medium of money transfer as the draft gets issued after the amount has been paid.
- Internet Money Transfer– These days, money can be send to any part of the world by clicking the mouse a few times. Thanks to the internet, transferring money has become immensely easy. One just needs to have a Login ID and a password that is given by the respective financial institution or bank. The location of the branch, the account number, and the name of the receiver also has to be registered.
Mentioned and discussed above are some of the most common methods used for money transfer. Each of them has their own set of advantages. Depending on your requirements, you can choose the medium that is the most suitable for transferring your money.
Author’s Bio: Dan Young is a freelance writer, professional blogger, and social media enthusiast. Her blog International Money Transfer focuses on Finance and Money Transfer bloggers.
Image Credit: Richard Allaway