Money transfer is the process where money is transferred electronically with no actual money physically involved. Also called wire transfer and later evolving to electronic funds transfer or EFT, it generally involves transferring large sums of money, across an immense network of hundreds of banks all over the world. EFT transactions also include automated teller machine or ATM transactions and other such processes using the phone and other electronic means. In the United States, the Clearing House Interbank Payment System or Chips and the Federal Reserve Wire Network or federal wire are examples of transfer payment systems. The federal wire has the duty of linking the Federal Reserve offices, the US Treasury, depository institutions and other government agencies. It transfers by wire US government securities, funds as well as supervisory, administrative and monetary policy messages.
Although a money transfer is a quite simple operation, it has allowed people form all over the world to have a fast and easy means of exchanging money. Fast cash means fast business transactions and the economic impact of wire transfer cannot be underestimated. It has given people a convenient means of transferring money across geographical places which otherwise would have taken days to cross.
The term wire transfer is used when people actually mean money transfer originating from the days when messages directing somebody to give a certain amount of money to certain person were sent across the telegram wire. It is instantaneous and is safer than having the money sent through the traditional means. Today such transfer of money is commonly seen everyday through the seemingly endless ATM transactions. The long lines that are usually seen on ATM machines are a testament of how much people appreciate this modern day convenience.
Sending money to friends or relatives anywhere in the world can now also be facilitated through the computer. Online money transfer enables transfer of money to anyone in a secure, fast and relatively inexpensive manner. Its advantages are you can send money to friends, family or a business partner even if the receiver does not have a bank account or even an Internet connection. Money senders can have a fund for their sent amount by way of a credit card, bank account or Pay Pal. You can send money anytime of the day even from your own home so there is no need to wait on the line as is necessary in bank transactions.
If you have a credit card, money transfer is also facilitated through it by registering with an Internet banking service. You can just log in to a bank’s website and simply input the name of the person you are going to send to and the card number. This way, banks extend online banking service to their clients. You also need to know the card number of the person you are sending to in order to complete the transaction successfully. However, this is such a menial task compared to the convenience that online banking brings.
