Money Transfer Companies

Written by Linda Alexander
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Immigrants in the U.S. often send their hard-earned money home to help their families. College students are forever asking their parents for financial aid. And reliable long distance friends will help each other out during emergencies. It's all done with the services of a bank or company specializing in wire transfers.

Increased Competition and Demand for Services

There used to be only a handful of companies that transferred money within and between countries. The Internet has given rise to a new wave of online payment systems, most notably PayPal. Banks also offer the ability to wire money from one bank account to another.

The drawback to using wire services is that they are costly. However, the growing competition and increased demand for these services has prompted a drop in what were once outrageous fees. Online payment systems are perhaps the cheapest way to send money but since they are not run by well-established banks, many people distrust them.

When you wire money, it is always a good idea to learn about any fees ahead of time. It never hurts to check to make sure your recipient gets the money once the transfer is complete. Depending on the area and the method you use, it could take anywhere from a few minutes to a week or more for the transfer to go through.

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