Electronic money transfer is useful if you do not want to use a debit or credit card. It is also good if you want a quick transfer, but if you want to have a canceled check, you should use the traditional money transfer methods.
With the developing technologies in the financial sector, the traditional transfer of money that involves cash is being phased out by electronic money transfer. It is being used in all sectors to transfer money locally, internationally, and even to pay for services.
What is money transfer?
Money transfer is described as the transfer of money from one bank account to another. The bank accounts can be from the same bank, different banks, the same country, or different countries.
When it happens in the same country, it is referred to as domestic money transfer, but from one country to another, it is called global or international money transfer. Money transfer can be done physically with cash or electronically using a computer, phone, or an electric terminal.
Some several advantages and disadvantages come with electronic money transfer.
Advantages
You can dispute a transaction
If you make a mistake when using EFT, you have the right to ask your bank to investigate the issue.
Although it may take some time, you have the security of knowing that you won’t lose money over any transaction.
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It is fast
Sometimes when you transfer money traditionally, it may take some time for you to access the money. However, with electronic money transfer, you can access it within 1-2 business days, or even the same day. That’s helpful when you need money fast for an emergency! Thankfully, LoanMart could give you quick funds with a direct deposit whenever you need it! Contact 800LoanMart for more information.
If you transfer money overseas, it will take 3-4 business days for the recipient to access the money.
Cheaper and safe
Traditional money transfer is more expensive because of the bank fees charged. It also eliminates any chances of you losing your money through fraud.
You don’t have to use a credit or debit card
If you want to pay for something, you can do it directly from your phone or pay using an electronic check conversion.
You can organize automatic payments
If you have monthly subscriptions, it can be easy for you to forget to pay for them every month. Electronic money transfer allows the business person to bill money directly from your account without you doing anything.
They don’t need a hold on your funds
You do not have to wait for any money to clear before claiming or using your money.
Convenience
You do not have to walk to the bank to transfer money overseas or domestically because you can do it anywhere, anytime.
Disadvantages
You must have the money immediately
To transfer money electronically or pay for something, you need to have the money with you, unlike when you use a credit card.
You don’t get a canceled check
After making payments using electronic money transfer, you do not get a canceled check from the bank, so you have to look at your statements to ensure it was the right transaction.
Some EFTs have to be reported to the government
If you want to transfer over $10,000, the transaction has to be reported to the International Revenue Service in the US.
How much can you transfer in a day?
There is no fixed limit to how much money you can transfer, and it all depends on the type of your transaction.
Electronic money transfer is useful if you do not want to use a debit or credit card. It is also good if you want a quick transfer, but if you want to have a canceled check, you should use the traditional money transfer methods
