In the last few years, it has become more popular and more secure to send money virtually. Virtual money transfers are just as quick as wiring money, but they have very different modes of transportation and operation. If you are trying to decide which method of sending money would work better, here are the differences between these two methods and how it affects payments received.
Going to a Wire Transfer Location
If you wire the money, you have to go to a wire transfer location. Some of these locations are inside petrol stations, while others operate inside big box stores. Regardless of where you go, you have to go to the location. (You could wire from your computer at home, but the cost to wire from a computer is significantly greater than if you just drove to the location and paid the wire transfer fee.) Likewise, the person you send the money to has to travel to a receiving station to get the money. The money is not transferred directly into the receiver's bank account.
Transferring Money Virtually
When you transfer money virtually, the money leaves your online account and travels to the other person's virtual account. The transfer is usually instantaneous, free of charge (unless it is a business transaction), and the receiver has the money without having to leave the house. On occasion, there may be system-wide glitches that would prevent the money from getting to the other person's account.
Cash in Hand
To do a wire transfer, you have to have the cash amount in hand, plus whatever the fee for wiring the money. It does not have to be the exact amount, but it does have to be the amount on hand. For example, if you are going to wire $150 dollars, and there is a $5.95 fee, you need at least that much cash in your hands. You can have several dollars more than that, but not less than the amount needed. It must be cash, as the money cannot be drawn or sent via a debit or credit card.
The virtual transfer requires that you have enough money to complete the transaction. If you send money to friends and family, your bank or financial institution usually requires no fee. If you are sending money for business purposes, there is always a fee, in which case both you and the recipient may be charged. Both virtual transfers and money wires have to be in some form liquid currency, meaning that the money is moved in the form of cash, or in the form of virtual cash. On this one point, neither method will allow a credit or debit card to be used.
Adding Funds to Make the Transfer
If you need to beef up the amount you are sending so that the recipient gets the full amount from the wire transfer, you will have to pull it from your checking or savings account with your debit card. You can also pull the money from your credit card as a cash advance. Keep in mind that the fee charged to you (and the recipient, if applicable) should be included in the amount you send.
With a virtual transfer, you may either have to have more funds in the account before making the transfer, or you can add money to virtual money account by buying cash cards in local stores. The cash cards allow you to move money from your checking account to your virtual account, which is often a process not typically allowed. The cash card needs at least an hour or more to be active and have the funds present before you transfer the cash from the card to your personal account. Then you can make the virtual transfer as needed.
Contact money transfer services for more information when you need to send someone money.