The world of digital payments has evolved and grown at an unprecedented speed. Online money transfers have become increasingly popular in recent years, with businesses and individuals alike turning to this convenient method of payment for domestic as well as international payments. The ease of making payments, the low cost, and the speed of the transactions make online money transfers (domestic and international) an attractive prospect for many. But what exactly is online money transfer, and how can you make sure your transactions are secure and efficient?
Online money transfer refers to a financial transaction that is initiated and completed through the Internet. This can be done through a variety of methods, including via bank accounts, credit cards, debit cards, remittance agents, forex houses, and digital wallets. In order to carry out online money transfers, you will need to have access to an online banking system or a third-party payment provider such as a forex house.
Online Money Transfer Basics
The main reasons to send money via an online money transfer service are undeniable: Online money transfer is fast, convenient, and safe.
Mailed checks can take days to be delivered, and they can be lost in the mail or stolen. If that money is being sent internationally, where it might be needed most, there’s also the matter of currency conversion fees, which are generally costlier than a money transfer fee. Online money transfer allows nearly instantaneous delivery — it takes data only seconds to travel on the Internet — with no physical complications to virtually anywhere in the world.
Numerous safety dealings are in place to ensure that your money goes exactly where it needs to go. Multiple layers of data encryption are use for online money transfers. That way, if by chance the data is stolen or hacked en route to the recipient, it’s all code multiple times so that it’s illogical, illegible jibber-jabber. It’s money on a screen to you, but once you hit send on a secure money transfer Web site, it goes out into the Internet as code data, and once it’s receive by the recipient’s bank or service, it’s decode and deposit as currency.
Online Money Transfer Methods
The various options through which users can make money transfers online are listed below-
Regulated by the Reserve Bank of India, NEFT or National Electronic Capitals Transfer is an electronic method of transferring money online. Most Indian banks provide the NEFT feature on Internet banking and mobile banking. Money transfer made through NEFT does not require any additional transaction costs. Transactions made through NEFT are processed in separate batches. The RBI has specified a cut-off within which these transactions are settle.
IMPS, fully formed as Immediate Payment Service, is a method to transfer capital immediately from one bank account to the other. Banks allow money transfers using IMPS through Internet banking and mobile banking platforms. As the name states, IMPS is helpful in the case of immediate money transfer, which is chargeable according to the transaction amount set by the banks.
RTGS stands for Real time Gross Settlement, meaning that through this method, the money is the transfer from one bank account to the other in real time without any delay. It works out as the best payment method if you need to transfer an amount equal to or more than Rs. 2 lakh in real-time. RTGS does not follow any specific processing method, unlike NEFT; hence, the funds are settle in real-time without any delay. Through RTGS, each transaction gets process with every instruction, which makes the money transfer process easier and faster.
Unified Payment Interface, or UPI, is the most recent method of transferring money from one bank to another online. UPI money transfer eliminates the need for complex bank account details of the receiver in order to initiate a money transfer. UPI ID, which acts as the virtual payment address, and UPI PIN, which is the security password for confirming the transaction, are the only things require to transfer money through UPI money transfer. ID and UPI PIN should be create at the time of registration on the mobile payments application. After creating your UPI account, the money transfer process becomes possible with a few clicks.
To eliminate the effect of demonetization from the country, numerous digital wallets have been introduce in order to facilitate online transactions. Digital wallets, like Paytm, have become much more popular owing to their multiple benefits. Money transfers made through digital wallets are free of cost, can be access 24*7, and are easy and convenient.
Advantages of Online Money Transfer
Online money transfer offers multiple advantages. Some of them are listed below-
- One of the significant advantages of online money transfer is that it makes the cash readily available. Unlike banks which take around 2-3 working days to transfer money from one account to another.
- Banks/financial institutions that offer the facility of online money transfer allow both international and domestic transactions. While domestic transfers are primarily free of cost, international transfers are chargeable.
- Online money transfer is one of the fastest methods of transferring money. Domestic money transfer takes only a day’s time to be complete, while international money transfer takes a day or two.
- In comparison to other methods, online money transfer has the simplest and easiest process to perform and complete.
Online money transfer is a convenient and secure way to send money to friends, family, or businesses. There are many different online money transfer services available, each with its own advantages and disadvantages. It is essential to compare the fees, speed, convenience, and security of different services before choosing one.