Send money to or from a debit card

Pros and cons of debit cards for sending money

Debit cards are similar to credit cards but are linked to your checking or bank account. The money is immediately deducted from your bank account when you make a purchase or complete a transaction using your debit card. A credit card allows you to borrow money up to a specific limit on your card, which then needs to be re-paid before a particular time or interest is added to the amount you have spent.

There are several positives and negatives attached to using a debit card for sending money overseas; each will play a factor in whether a debit card is the best way to send money internationally for your needs:

How to transfer money using your debit card

You can use several traditional methods to transfer money internationally with your debit card. For all of these, the essential pieces of information you will need are:

• The permanent account number: the 16-digit number which appears on the front of your card
• The card’s expiry date
• The security number (CVV): the last three digits printed on the signature strip on the back of the card

Occasionally you will also need to provide the bank account number and sort code that corresponds to your bank account: these are usually printed on the front of the card. Sometimes, your money transfer provider may also ask for your SWIFT code. You will typically be able to find the codes needed by logging in to your online banking and viewing your account details.

When using your debit card to send money, you’ll need to enter these details along with the amount you want to send, where you want to send it, and in what currency you want it delivered. Then, after you hit pay, you could be re-directed to your bank’s security page to verify your payment; this is a standard security measure.

How to receive money using a debit card instantly

If you want to receive money directly to your bank account or instant transfer – with immediate access via your debit card – all you need to do is give the sender your account details. These usually include:

• Your name as it appears on your card
• Financial Institution number (3 digits)
• Branch Transit Number (5 digits)
• Your Account Number (7-12 digits)

When sending funds, the payee enters your account information, and the money will be transferred directly to you, allowing you to use your debit card to spend the money the instant it is cleared in your account. This makes debit card transfers one of the most convenient ways to send and receive money, one of the biggest reasons for their popularity.

Can you send money to a debit card instantly?

While debit cards can be fast and convenient, the time it takes to send money abroad depends on several factors. Paying for your transfer with a debit card is undoubtedly faster than paying via check, cash, or bank draft. Most card transactions are processed instantly, but it might take up to 24 hours for the money to move out of your bank account. 

However, other factors determine how fast your money transfer is processed. Common factors to consider include: 

• Location: How fast you can send your money depends on the countries between which you are sending. For example, popular transfer destinations such as Canada and the USA are much quicker than places like Kenya and India, where money transfers may be less common

• Your transfer provider: Transfer speed also depends on the service you are using. It is a good idea to compare transfer times between service providers and choose the one that fits your needs. For example, you may find that one provider specializes in your chosen money transfer route more than its competitors. Remember, some of the faster transfer options may cost more, so weigh up cost vs. time when comparing your options. We’ve put together a list of top 10 money transfer companies to get you started

• The withdrawal method: Finally, transfer speeds may also depend on how your recipient wants to receive the money. If you’re using your debit card to send money to another bank account, it might be slower than bypassing banks and sending it directly to them with the help of a money transfer service

Can you send large amounts with a debit card?

When you send money using a debit card, the money comes directly out of your bank account, and, in theory, you could send the total available amount in your account. However, most debit cards have a daily spending limit which is the maximum amount of money you can send or withdraw in 24 hours. The amount varies from bank to bank and depends on the type of checking account you have.

Some debit cards will have a daily spending limit capped at $1,000, $2,000, or even as much as $5,000, but most will have an international transfer limit which is lower than this amount. Therefore, if your daily spending limit is $5,000, you might have a daily transfer limit of $1,000. You can find out your spending limit by checking on your bank’s website, reviewing the paperwork issued with your card or calling your bank branch. 

If you want to make a significant transfer with your debit card, you can also request to increase your spending limit temporarily. This may, however, take time and incur additional fees. For this reason, a money transfer service can be more convenient as most have much higher transfer limits. For example, most providers allow you to send up to $15,000 per day with bank transfers or $2,000 per day if you choose to fund the transfer with your debit card. 

How much does it cost to send money internationally using a debit card?

International transfers using a debit card typically have more costs attached than other means of payment but will still cost less than using a credit card. 

Charges might include online transfer fees (charged by your bank or money transfer provider), an exchange rate margin, and possibly taxes. It’s hard to accurately estimate how much these will amount to because the fees and margins vary significantly between individual providers. Our comparison tool presents precise comparisons between providers in real-time for anyone transferring funds using a debit card.

The cost of sending money abroad using a debit card also depends on which country you send it to. Transfer routes between popular countries and business destinations may cost less than transferring money to a remote corner of the globe.

Unless it is an emergency, it is always a good idea to do your homework in advance. 

Research your options and compare the costs between different banks and service providers. One of the best ways to do this before you actually have to make the transfer, giving you ample time to cross-compare and find out where you’re getting the best rates. We’ve put together a list of key points to consider to help you find the cheapest way to send money abroad.

Remember, you should do your research every time you’re planning to send money abroad. Just because one provider was the cheapest option last time doesn’t mean this will still be the case.

Summary: Is sending money with a debit card the best option?

Unlike credit cards, the money you spend or send using a debit card is deducted directly from your bank account. While most banks do not charge any annual or service charges for debit cards, international transfers can have a lot of associated costs, such as online fees and exchange rate margins. Most debit cards also have a daily spending and international transfer limit, making them less than ideal for large transactions. Debit card spending maximums are set by your bank or debit card provider, and they can vary greatly. Some debit cards may have a daily transfer limit as low as $1,000 per day. 

Fortunately, digital money transfer services make international transfers much more straightforward and cheaper than traditional methods. These online providers specialize in facilitating international transfers and can often offer you a better deal than your bank when using your debit card to make a transaction. It takes minutes to register on their sites, and many offer mobile apps too. In addition, these specialist companies offer much more value, including free international transfers, cheaper currency exchange, significant transfer limits and real-time alerts.

When it comes to finding the best deal, our simple and easy-to-use comparison tool will help you find your best option in seconds, from established banks to new and innovative digital brands.  

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