Log in to your personal account
Sign up
Please fill in all the fields carefully
registration form. A registration notification will be sent to the e-mail address you specified.
If you want to use Telegram @username, click Login and enter your Telegram @username in the login field
Attention! Password must consist of 8 or more characters, uppercase and lowercase letters, as well as numbers
Password recovery
Enter the e-mail address specified during registration
You send
You send
Go back

Money transfers: pros and cons

2016-05-15

Money transfers: pros and cons

Money is in constant flux - it moves through banks, postal orders, electronic and other systems. Today, there are more than a dozen options for transferring funds, and each of them has individual characteristics. Below we will consider the main methods of money transfers, their pros and cons.

Mediators

Classic (intermediary) money transfer systems. Today, many intermediary companies have appeared, ready to stand between the two parties to the transaction - the sender and the recipient. The task of the system is to organize and execute the transfer, for which a commission is charged from the client. Among the popular intermediaries, it is worth highlighting the Russian Post, Western Union, Contact and many others.

Before highlighting the disadvantages of such remittances or the positive features, it is worth examining the organizations workflow. The algorithm is as follows:

- The sender comes with papers that confirm his identity to the transfer acceptance point.

- A special form is filled in (recipient data, amount, city and country, information from the passport, and so on).

- The commission agreed by the system is made.

- The amount to be transferred is transferred. In return, the sender receives a receipt that confirms the fact of the transfer. The transaction number is indicated on the document.

- The recipient of the funds is given the number by which he receives the money.

Benefits:

- High speed of registration.

- Minimum time to complete the transfer.

- A sufficient number of points where you can get funds.

- Ability to cancel the transaction until the receiving party takes the money.

Disadvantages:

- Commissions are too high in some systems.

- The time to complete the transfer is usually longer than the specified one.

- The amount of funds available for transfer may be limited by the intermediary itself (by its rules).
 

Bank

Bank transfers are the traditional and most reliable way to transfer funds from one location to another. To carry out such an operation, it is enough to go to any banking institution and transfer money. There are two options for such an operation - with or without opening an account. If you need to carry out only one transaction, then opening an account is necessary.

Pros of money transfers using a bank:

- Depositing funds for a transaction can be carried out in different ways - in cash or by non-cash payment (from a salary or deposit card).

Disadvantages of such transfers:

- If a transaction is carried out between several institutions, then the money often goes for several days.

- The commission fees for making a transaction are higher than for transferring funds through an ATM or online banking.

- Citizens of the Russian Federation cannot carry out transactions without opening an account;

- To carry out a banking operation, you cannot do without visiting the bank itself.

ATM

Transfer using an ATM. This method is gaining more and more popularity. Users have two options. The first is to make a wire transfer, that is, the funds are not withdrawn to fiat, but are transferred from account to account. The second - in cash using a bank card.

The advantages of such transfers:

- Possibility to conduct transactions in foreign or national currency.

- ATMs are installed almost everywhere in big cities, so there is no need to look for a bank branch.

- To make a transfer, it is enough to know the card number of the receiving party

Cons of money transfers using an ATM:

- The operation can be carried out within one payment system.

- Time for transfer between different contractors takes 2-3 days.

- The ATM tends to break. If this happens, then it will not work to receive the check.
 

Internet banking

Online (internet) - banking. This option involves the use of a PC (tablet, laptop) connected to the global network. The service has become widespread due to its simplicity and availability.

Pros of money transfers via Internet banking:

- The minimum commission for the transaction.

- Ability to manage your account and order a transfer without leaving your home.

Disadvantages:

- The need to connect a computer to the global network, without which the transaction will not work.

- For the full-fledged work of Internet banking, you cannot do without an agreement with a financial institution.
 

Mobile banking

Mobile banking is a type of service that allows you to manage money through a mobile phone (Internet connection is required). The advantage of the transfer is that the transaction can be carried out at any time of the day. Disadvantages - mandatory installation of a special application on the phone. In addition, the mobile banking service is not provided by all financial institutions.
 

Electronic payment systems

Electronic currency systems. This means making transfers through an Internet wallet of one of the electronic systems, for example, Yandex.Money.

Benefits:

- Transaction time is several minutes.

- Replenishment of an account for subsequent transfer can be carried out from a bank card, using one of the terminals, and so on.

Disadvantages of money transfers through electronic systems:

- Availability of limits on amounts.

- High level of commission.