People send money to others for many different reasons: they may need to pay a neighbour who helped mow their lawn, transfer tuition fees to their kids studying at university, or split the bill for a meal.
This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.
When those moments arise, it's important to know how to transfer that money safely and securely. Here, we'll explain different ways to send people money and protect your funds in the process.
There are many different solutions and tools available to help you quickly transfer money to friends, family members, or even someone you’re purchasing something second-hand from.
Common ways to send money to people include:
Money transfer apps can offer fast ways to send money electronically. And there are many types of apps that people can use to transfer money internationally, to businesses, or to friends and family. You'll typically need the recipient's email, phone number, or username to send funds through one of these apps.
Money transfer apps are usually free to download, but their transactions may come with fees depending on your connected bank or transfer specifications. Business payments, large money amounts, and international payments may carry extra fees.
Potential benefits of money transfer apps include:
Another common way to send money to friends is through peer-to-peer (P2P) payments.
P2P payments are made through a website or money transfer app, which is linked to each party's bank account or payment card. P2P payments let you send money to others with normally just a few taps or clicks.
One of the more traditional ways to send money to someone is through bank transfers. As established financial institutions, banks offer safe and secure ways to send cash, especially to strangers.
This involves transferring money from one bank account to another. Typically, all you'll need is the other person's sort code and bank account number to complete the transaction. Funds could take between 2-5 business days to reach the other account. The time it takes for funds to be transferred may vary depending on the financial institution.
Bank transfers may come with fees depending on where and when you are sending your money. International transfers, transfers to other currencies, or transfers to an account at another bank, for example, may carry fees.
Keep in mind that overseas transfers may also require more information, such as the receiving bank’s SWIFT (Society for Worldwide Interbank Financial Telecommunications) or IBAN (International Bank Account Number) code.
When you transfer money to someone else, it's important to make sure the payment is verified and the process is secure. If you don't send money securely, you risk losing your funds or personal information to fraud.
Common types of fraud include identity theft and imposter scams. Imposter scams are typically the most frequent type of fraud, which occur when fraudsters use hacking or phishing methods to steal people’s bank account information and make unauthorised transactions.
Banks and money transfer apps offer certain protections to keep your payments secure. Banks, for example, may have built-in insurance to protect customers from wire fraud and making accidental payments to fraudulent accounts.
Learn about keeping your transactions secure.
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