Money Transfer Services Basics

Get oriented with simple money transfer solutions

The idea behind money transfer services is pretty simple: You have money at your location or in your business bank account that someone else needs. If sending a check isn't appropriate or fast enough and you're not in a position to use a credit card, your next best option is sending money through a specialized service.

Money transfer companies have offices or bank agreements that allow them to collect money at one location and then distribute it at another. In return for providing this service -- the physical arrival of your money at its designated destination -- they will collect a fee that may vary. Read on for money transfer services basics that include:

1. Understand different types of money transfer companies.
2. Decide whether you need specialized software.
3. Make sure your money can get where it needs to go.

 

Sort through various ways of sending money

The first step toward understanding the many options for wiring money is to decide whether you want to send money online (over the computer or a mobile phone), offline (in person at a bank or money transfer office) or by telephone. You should also consider what your source and destination currencies will be and how soon you need the money to arrive. Then use the information you've gathered to see which money transfer services are a good match for you and your business.
Try: The Money Transfer Guide walks you, step by step, through how to transfer money both online or offline. Icici Bank, an Indian bank that offers its own niche money transfer service, explains the difference between an offline or online wire transfer and offers a helpful money transfer FAQ.

Investigate money transfer software

If your business consistently transfers large amounts of money, you might need specialized software to track your transfers. Software lets you conduct the bulk of your business directly from your desktop, and should only be purchased from an established consulting firm that can make sure you're fully trained in how to use it.
Try: Pristine Consulting produces a money consulting software product called Cashpoint that allows users to directly send and track the transfer of money, as well as aggregating and analyzing other useful corporate information such as profit margin. Learn more about bank money transfer software systems like ACI Worldwide.

Find a money transfer business with the right destination in mind

While some niche money transfer companies deal specifically with transfers to and from a specific country (such as India), you'll probably want to deal with a money transfer company that has an established international presence in multiple countries. This makes it more likely that they will be legitimate, as opposed to a clever fraud; it also expands your options of where to deliver money while still dealing with a trusted business partner.
Try: PayPal Merchant Services offers world-wide transfers of money online, with a Recommendations Wizard to help you choose the right service for your business. Xoom is another online money transfer service that operates in a number of countries and includes an informative FAQ.

 

• Make sure there is a guarantee or refund policy in place if your money is not available where it needs to be and when it needs to be. Make sure that the company you choose to deal with also refunds all fees collected from a failed attempt to wire money, too.

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