Money Transfer Services Key Terms

Learn money transfer service vocabulary for smoother transactions

By Susan Davis

There are many options for transferring money and a variety of fees associated with those options. Businesses need to be knowledgeable about the ins and outs of sending money in order to ensure that money transfers are smooth, inexpensive, quick and free from fraud. The following terms are important when selecting the money transfer options that work best for your business.

Money transfer company

Money transfer companies specialize in sending money for a fee. These companies send money to be picked up by a recipient in the form of cash, debit card, wire transfer, check or debit card.
Try: For an overview of money transfer companies as well as safety issues and questions to ask prior to choosing a money transfer company, read the information posted by Consumer Action.

Money transfer software

Money transfer software allows companies and small businesses to transfer money from one account to another by using the money transfer software loaded on their computer.
Try: ACI Worldwide is an example of a company providing money transfer software to businesses. Their website includes detailed information about what money transfer software can do.

Wire transfer

A wire transfer is simply another name for the electronic transfer of money.
Try: To learn how to make a wire transfer and for a summary of how wire, review the information at Transactmoney.com.

Prepaid debit card

Prepaid debit cards are becoming very popular with money transfer companies. These cards work exactly like bank debit cards or check cards. Instead of picking up cash, the recipient is given a prepaid debit card with the amount of money specified by the sender placed on the card.
Try: AccountNow lists advantages of using prepaid debit cards, as well as addresses safety concerns.

Transfer fees

Any type of money transfer transaction has a fee attached to it. Money transfer companies vary in the fees they charge, so it's important to choose the company you use carefully.
Try: Get more information on wire transfer fees at PageTech.

Currency exchange rate

The currency exchange rate is the amount of money one currency is worth when exchanging it for another currency. This is also known as rate of exchange, foreign exchange rate or exchange rate.
Try: Look to MSN Money for a current currency exchange rate comparison of the world's major currencies.