Online Money Transfers

Written by Linda Alexander
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Transferring money online can be accomplished in any number of ways. Wire services like Western Union and Moneygram are now equipped to handle online transactions with your credit or debit card. Local banks that have online banking also allow you to transfer money online instead of trekking to the bank in person.

Online Payment and Money Transfer Services

Perhaps the fastest and least expensive way to send money over the Web is through an online-only transfer service such as PayPal, iKobo, Paystone or eBay's BidPay. Services like these allow you to send money to anybody with an email account, usually for free or for a small fee. They work by directly debiting your bank account or charging your credit card. They then deposit the money into the recipient's bank account or account with the company. Some send a debit card in the amount of your payment, which the recipient can then cash out.

PayPal is the largest and most trusted online money transfer service. However, their accounts are not FDIC insured bank accounts, so you could potentially lose your money if the company were to go out of business. To avoid this risk, do not keep large sums of money in your online payment accounts.

Any of these services will allow you to send money internationally. Most of the time it costs less than wire service fees at Western Union or Moneygram. Companies each have their own ways of computing the exchange rate and their own privacy policies, so be sure to read the fine print before using them.


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