Electronic Money Transfers

Written by Linda Alexander
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Long before the Internet went commercial, people were transferring money to each other electronically. This was done through wire services, most notably Western Union or Traveler's Express Moneygram. Banks were also a part of the network of companies that facilitated wire transfers. They could wire money or create a foreign bank draft.

Wire services and bank drafts are still available today and they are among the most trusted ways to send and receive money. Sending cash through the mail is not advised and sending checks can take days plus a week or two to clear. Wire services, however, are nearly instant. In most cases, the recipient has access to the money in 10 to 60 minutes.

Types of Electronic Transfers

With electronic transfers, you might never physically see the money you send or receive. This is because they can be done with credit or debit cards or checks instead of just cash. Some companies pay the recipients with checks or bank drafts, which they can then go and cash out.

Online electronic money transfers are growing in popularity. They are convenient, quick, cheap, and easy to do right from your computer. Often, you don't need a bank account to perform transfers. You can charge your credit card for the amount and anybody with an email address can receive money, either in their service account or through a check or stored value or debit card.

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