Best Ways To Send Money – USA TODAY Blueprint

Sending money electronically to friends, family or even a small business has become a modern convenience. A variety of providers have stepped up to meet the demand, marketing their particular service to you. The best one to use depends on various factors, including the location of the recipient and the amount you are trying to offload.

How to send money within the United States

You have plenty of choices when sending money domestically. Two of the most popular include Zelle and PayPal.

• Zelle: Zelle is a tool that facilitates bank transfers between accounts. If your financial institution participates, you can sign up for Zelle through your existing bank account. Once you sign up, you can send money directly from your bank account to someone else’s (if they also have Zelle) in a matter of minutes. And the best part is that it’s usually free. 

• PayPal: PayPal is a popular peer-to-peer money transfer platform. You can send money from your bank account, credit card, or debit card. Although the recipient may receive the funds instantly, it can take 1-3 days to transfer them to their bank; faster transfers, known as instant transfers, charge a fee. Typically, you are limited to up to $60,000 per transaction. With heavy international fees, PayPal is best for domestic users. 

How to send money outside the United States

Sending money outside of the United States is challenging, as it often involves finding the best exchange rate but lowest overall fees. Luckily, there are plenty of ways to facilitate the transaction safely. Below you’ll find some of the best ways to send money outside of the United States:

• Wise: Wise, formerly TransferWise, is focused on providing a borderless banking experience. It offers international money transfer options in 55 currencies and funds can be transferred with a debit or credit card, ApplePay, direct debit or wire transfer. 

• Xoom: Xoom, a PayPal service, facilitates money transfers across more than 160 countries. You’ll have the ability to send up to $100,000 per transaction via a bank account, credit card, or debit card. Typically, the funds reach the recipient in minutes. The fees vary based on where you are sending the funds.

There are multiple steps to transferring money internationally; it takes research and price comparison, as well as requires needing your recipient’s bank account details. Here’s what you’ll need to do. 

• Choose the right platform: Before you can send money, you’ll need to choose the appropriate transfer service for your situation. You’ll want to ensure that the platform can send money to the desired country, and figure out what fees it may charge to do so. Also take a look at what exchange rate it offers. 
• Create an account: Once you’ve chosen the right transfer service for your situation, it’s time to create an account. Typically, you’ll be required to verify your identity through a form of government-issued ID. 
• Enter the recipient details: The transfer service cannot facilitate the transfer without the recipient’s details. You may need to provide their name, banking details, address, and, if they want the cash delivered in person, a pickup location. Confirm the recipient’s name matches their government-issued ID.
• Select the transfer amount: You’ll need to indicate how much you’d like to send to the recipient. 
• Select a payment method: Depending on the transfer service, you might pay for the transfer with a bank transfer, debit card, or credit card. Typically, a bank transfer is the most affordable option. If you opt to send money via credit card, keep in mind that it’ll likely be charged as a cash advance—which usually incurs hefty fees.
• Confirm the details: Before hitting send, running through the information one last time can help you avoid an error. Unfortunately, errors could send your money to the wrong place. 
• Track your funds: Finally, it’s time to track your funds until they reach their destination. Many services will send a confirmation email to both you and the recipient when the funds are sent and when they arrive. 

Is it safe to transfer cash online?

Whether sending money internationally or domestically, avoiding scams is a necessary part of the process. 

“Be wary of unsolicited requests for money, and never send money to someone you don’t know,” says Andrew Lokenauth, founder of Fluent in Finance and professor at USF’s School of Management. 

Additionally, Lokenauth warns consumers to never provide any personal or financial information to someone they don’t know, and to always be suspicious of unsolicited requests for money. 

How much does it cost to send money?

The cost of sending money varies widely based on the method you choose. 

For example, those using Zelle to transfer money between participating banks won’t encounter a fee on either end of the transaction. In contrast, the cost of a wire transfer might range from $0 to more than $30. 

Transfer platforms, like PayPal, can take a percentage of your transaction. 

Before sending money, scope out all of your options. If you take the time to compare costs in advance, you can avoid overpaying to facilitate money transfers.