How to send and receive money online?
Using money transfer services
Ideal for sending money internationally, money transfer services have made huge strides in the past couple of decades to make sending your money abroad cheaper, faster, and more accessible than ever.
With several transfer providers focusing significantly on their digital presence, you can now access your account and initiate international transfers 24/7 from your mobile app, with the possibility to send or receive funds from the other side of the world within minutes.
Money transfer services work by users signing up for a free account and entering the transfer's details. Most providers have several payment options, such as bank transfers and card payments.
Using a trusted provider
Whether you’re paying bills abroad, supporting family members back home, or something else entirely, transfer providers like WorldRemit are one of the best ways of getting your money abroad cheaply, quickly, and securely.
What are the benefits of money transfer providers?
Money transfer providers are one of the most popular ways to send money online because:
They tend to have lower fees than traditional banks
They offer more competitive exchange rates
They can get your money to your recipient within several minutes; in some cases
Many companies support transfers to hundreds of countries worldwide
Person-to-Person apps and services
Multiple services will allow you to send money for free straight from your bank account to another person. Usually, these services or apps allow you to link your bank account, or you can pay by card (credit cards will usually have a small fee).
Top sending apps include:
PayPal: One of the most popular ways to send money online to friends and family as well as pay for online purchases and subscriptions, PayPal is one of the most well-known payment services online. A bonus is that most other people will already have a PayPal account to save the hassle of setting up a new account when you need to get money to someone. When sending money domestically, most PayPal transfers are free.
Venmo: Available in the US only, Venmo is a free payment app that transfers funds from your bank account or debit card and can be sent using your recipient's username, phone number, or email address. Venmo is popular with the younger generation mainly because it allows messaging with each payment.
Cash App: Cash App is another popular app for sending and receiving money online with no fee. To send money, you simply need your recipient's username, phone number, or to scan their Qr code. Cash App is only available in the US and UK.
Zelle: Zelle is a US peer-to-peer service for bank transfers, offering fast and free bank transfers to customers whose banks are partnered with the service. To sign up, you need to register directly on Zelle via the app, and you can then send money directly from your bank account to your recipient.
What are the benefits of person-to-person sending apps?
For small, domestic payments between friends and family, the apps listed above are some of the most efficient ways of getting your money to someone quickly and cheaply. The one caveat is that both parties often need to have an account for the app you are using.
Banks
Of course, another option for sending your money online is to use your bank. If you are looking for a straightforward bank-to-bank transfer, using your bank's online app can be a convenient way to do this.
It's worth noting that banks will often have higher fees than third-party services. If you are sending your money abroad, for example, a money transfer provider will almost always have lower fees and better exchange rates.
What are the benefits of sending money online with your bank?
Sending money online with your bank can be a convenient way of getting your funds to your recipient, as you don't need to sign up for a new account with a third-party provider. However, banks also tend to have the highest fees associated with money transfers (particularly international transfers) and slower transfer times.
How can I send money online instantly?
It's important to know that not all online money transfers will be processed instantly, so if you need to get your money to someone urgently, you should first ensure the service you are using can facilitate this. Several things can affect how quickly your transfer is processed, including:
Where you are located
Where you are sending funds to
What payment method you select (bank transfer can sometimes take longer than a card payment, for example)
How you choose for your recipient to receive the funds (cash pickups are often available very quickly)
Our guide to sending money instantly covers some of the top services to use for rapid transfers worldwide.
It's worth noting that banks will often have higher fees than third-party services. If you are sending your money abroad, for example, a money transfer provider will almost always have lower fees and better exchange rates.
Sending money online with a debit card
Paying by debit card to send money online is a popular choice for many people looking to transfer money. Essentially an extension of your bank account, paying by debit card is a widely accepted payment method and means the funds will leave your account near instantly, which means you're not borrowing money to send a transfer.
However, remember that sending money via debit card can incur higher international transfer fees than other means. Our complete guide to sending money with your debit card will take you through the pros and cons in more detail.
How do I transfer money to someone else's bank account?
The steps to transfer money to someone may vary slightly depending on what method you use to send money online. However, generally speaking, the process will be relatively similar and straightforward:
Step 1: Choose your provider
Step 2: Create your account
Step 3: Enter the details of your transfer
Step 4: Double-check the charges
Step 5: Start your transfer
What details do you need to transfer money online?
Although your provider will no doubt guide you through the process of sending your money online, it's helpful to have all the details you'll need to be prepared ahead of time. For sending money online, you will usually require the following information about the person or organization you are sending to:
The name of the person (or organization) you are paying
The bank account number of the account you are paying into
The sort code of the account
The date you want the payment made
The sum you are sending
If sending internationally, what currency do you need it converted into
A payment reference, so the payee knows where the money came from
Occasionally, the name and address of the bank you are sending to
In some cases, the IBAN/BIC codes of the account you are paying into
In addition, you'll need to provide some details about yourself. This typically includes:
A valid form of ID such as a passport or driving license to verify your identity (may not always be required)
If paying by bank transfer, your full name as it appears on the account, bank account number, and sort code/BIC/SWIFT code
If paying by card, the long 16-digit number on the front of your card, the expiry date, and the CVV security code
Read our guide on sending large sums of money internationally for more information on the documents you may need if sending a larger amount abroad.
Other payment methods for sending money online
Sending money via bank transfer can be a convenient way of electronically transferring funds between two bank accounts, but it's not always the quickest way to get your money into your recipient's hands.
Other ways you can have your payment delivered to your recipient include:
Cash pickups or delivery
Cash is one of the fastest ways to get your money to your recipient. Unfortunately, not all money transfer providers offer this service, so make sure it's available before locking in your transfer. Some of our top recommended providers offering cash payouts include WorldRemit and Ria Money Transfer.
Depending on what provider you use, you may be able to choose between having your recipient pick up the cash at an agent location, or they may get the funds delivered directly to their door. Cash pick ups are often available instantly and have low transfer fees.
Mobile wallets
Many money transfer providers have a large digital focus with user-friendly apps to make managing your transfers accessible 24/7. One popular payout option is to send your funds to a mobile wallet, which your recipient can access if they also have an account with the provider you are using.
Mobile top-ups
Some money transfer providers even offer the option to send money as a mobile top-up. This can be helpful if, for example, you send money back home to family, and paying for their mobile so you can stay in regular contact is part of why you are sending money home.
Money orders
How much money can I send abroad?
How much does it cost to send money online?
What is the best way to send money online?
The best way to send money online will vary depending on the circumstances of your transfer. Different providers will be more suitable if you send money domestically than if you are looking to send money abroad, for example.
A few of our top recommendations include:
✓ Best for international transfers to friends and family
When sending money abroad, a money transfer provider is almost always the cheapest and most efficient way to get your money securely to your recipient's bank account - without losing a large percentage of the transfer amount to transaction fees.
TransferGo, for example, has a fixed fee structure that is clearly displayed when you enter the details of your transfer, with a range of options that allows you to prioritize cost or speed. One of their biggest advantages is the company's 30-minute transfer option when sending money from the UK, with the option for weekend transfers.
Ultimately, the best money transfer provider for your international transfer will depend on the circumstances of your transfer. That is, where you are located, where you are sending money to, the sum you are sending, and the payment and payout methods that best suit you and your recipient. We always recommend using our innovative comparison engine to find the best option for you.
✓ Best for domestic transfers to friends and family
For sending smaller amounts to friends and family, a peer-to-peer app will often be the most affordable and faster way to get your money to the receiving account. Popular apps well-known for their user-friendly interface and free transfers include:
PayPal
Venmo (the US only)
Cash App (the US only)
✓ Best for sending large sums
Not all third-party providers are suitable for sending large sums, for example, if you need to transfer a deposit for buying a home abroad (see how the Canada deposit insurance corporation affects money transfer customers). This is because many providers have a maximum sending limit, while others require further verification of your identity before processing your payment.
We would recommend using our comparison tool to help you find a suitable provider for the amount you are looking to send.
Looking for domestic money transfers?
FAQs
How much does it cost to send money online?
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What is the safest way to send money online?
Bottom line
Sending money online is more accessible than ever nowadays, with apps and online banking making it possible to access your accounts and move your money around the world within minutes. While sending money may be more accessible than ever, however, it also pays off to be informed about what to look for in a transfer provider to ensure you're getting the best deal in terms of cost, speed, security, and reliability.
The best way to do that? Research the best provider for your specific transfer needs. Specialist transfer providers will all have their own fee structure, exchange rate markup, and transfer time capabilities depending on the two countries you are sending between. Comparing services is the most efficient way to ensure you're matched with the best option for you.
