Sending Money without a Bank Account

With today’s families spanning across the globe and family members depending more and more on each other for financial help, many are faced with how to send money securely, quickly, and inexpensive. In today’s economy with everything on the rise from gas prices to airfare, sending money can be quite costly if you do it on a regular basis.

Another dilemma may arise if the person you are sending money to does not have a bank account. It may be hard to believe, but a national government study conducted revealed that 13% of people do not have bank accounts. For some that is unheard of, but the truth of the matter is that many people function perfectly fine without bank accounts and surprisingly, it is being done everyday.

If you send money on a regular basis and you are faced with the dilemma of the recipient not having a bank account, you do have options:

Gift Cards

This is perfect for the infrequent need to send money to someone. You simply purchase a gift card from a store or online for a specified amount. The card is then sent to the recipient. When they have used upon the dollar amount, the card is void. The downside to this is that you have to either pay extra for expedited delivery or they have to wait for delivery.

Bank Checks (Drafts)

These are checks made out by the bank specifically to the person you would like it to go to. There is usually a small fee for this service ($5.00 or so). When the person receives it, they may be able to take it to a check cashing service or have someone else cash it at their bank.

Money Wiring Services

These are often located various places throughout the community – convenience stores, drug stores, grocery stores, or stand alone locations. Probably the fastest and most convenient way to send money, same day, it is also the most expensive, often charging “x” of dollars per $100 being sent. In addition, the recipient has to find specific locations to retrieve the money.

Pre-Paid Debit Cards

This is the most convenient option if you send money to someone at regular intervals. Let’s say, your elderly aunt in another country, or even a college student in another state. These cards are re-loadable, which makes it easy to add money.

There are several different cards available. Before obtaining a pre-paid debit card, check the fees involved as they vary significantly from card to card. What makes these cards so great is that the recipient can go to an ATM and withdraw funds. They can make purchases online, or even pay bills. You, as the sender, can usually load funds from your credit card or bank account. Many times, you can do it from the comfort of your own home.