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A money transfer usually refers to one of the several possible modes of cashless money relocation. These could refer to either wire transfers, using your credit or debit cards to make payments, engaging the services of companies such as PayPal, writing someone a cheque, cashing a cheque or issuing a demand draft among others. As you can see, even though the act of transferring funds without using liquid cash is quite simple, there is more than one option available to do so. It is important to be able to distinguish between these, in the same way as we educate ourselves about other commodities. An online money transfer, or a wire transfer as it is otherwise known, for example, is refers to the electronically facilitated movement of money and other assets (such as securities) from one account to the other, usually to an account which belongs to another financial institution. Online money transfers are executed by almost all of the world’s major banks. Their biggest advantage is that they allow for the shipment of money across vast geographical distances in a matter of minutes. Banks and money transfer services charge a fee for their transfer services, in proportion to the scale of the transfer. A balance transfer on the other hand doesn’t refer to a transfer of funds, but, as the term suggests, a transfer of balance. For example, balance transfers allow credit card users to reallocate their outstanding amount of one card to another card, which has been used to a lesser extent or has been newly issued. To elucidate further, if you have run up an outstanding amount of, say, 10, 000 Rs. on one of your cards, you may transfer this amount to a zero interest balance transfer card. In this case your original card will reflect 10,000 Rs. less in its credit limit. Moreover, balance transfer credit cards are interest free, which means that if one pays off their dues in time, they pay no interest on the amount. This service functions almost like an interest free loan. If used smartly, balance transfers are a useful tool in effectively managing your debts, and paying them off. Any money transfer service will charge you a fee, so pay close attention to their rates. These usually vary with the currency and amount being transferred, and to where. It is also important to avail only of those money or balance transfer services that you know and trust. The digital medium is still prone to criminality, such as phishing and cyber fraud, so shop around for the institution that is most technologically secure. It will go a long way in ensuring that your finances remain safe on the internet. Transferring money online is a very useful and important service that many of the banks provide now days. It makes our life easy in such a busy and hectic schedule. You need not to stand in Bank queues to deposit money to someone else’s account or transfer money to your close ones.
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