Comparing Money Transfer Methods (Part 2)

The final two factors we will look at when comparing money transfer options are safety and convenience.

Safety

As technology has become more advanced, one of the benefits involving money transfers has been that security has increased in every available method.  Most companies that facilitate money transfers who hope to be competitive take every possible measure to ensure the safety and security of each dollar than is transferred.

Banks handle security with thoroughly protected computer systems that encrypt customer data and require government issued identification to send and receive money.  Banks are responsible to account for every dollar entrusted to their care, and they do a great job with security.

Both money transfer companies and online companies that offer prepaid debit cards provide adequate safety for their customers.  Over the course of the past decade, internet security has advanced to the point that it’s very difficult for hackers or others with malicious intentions to access protected information.

A security breach for a money transfer company is a serious problem, not just because of the loss of money, but also because of the damaged reputation that will result.  Today, with so many companies competing for a piece of the money transfer market, security is a top priority for successful companies.

Prepaid debit cards send money with the added security measure of a PIN number, ensuring that a card that is lost or stolen will remain protected until a new card can be issued.

Convenience

Technology has also provided more convenient money transfer methods today than ever before.  Banks have made money transfers more convenient by providing customers with the ability to initiate transfers over the telephone or the internet.  Customers don’t necessarily have to walk into a bank branch anymore.  For the recipient of the funds, each foreign bank has its own set of rules for accessing the money that is sent, so it’s important to make sure that the bank receiving the funds will be a convenient option for your recipient.

Money transfer services can also be very convenient, depending once again on the destination of the cash.  The biggest complaint about sending money through money transfer companies is the person receiving the funds has to find an agent of the money transfer company to access the funds.  In developed areas, this can be simple.  However, when sending money to people in more rural areas, this can become a major hassle as they attempt to access the funds.

By far the most convenient money transfer method is the prepaid debit or ATM card.  An internet connection and valid social security number is really all that is required to get started.  The person sending funds initiates the transfer online, and a prepaid debit card is sent via Fed Ex to the recipient.

The person sending funds then provides a PIN number to the recipient, who can access the funds at any ATM machine.  This prepaid debit card can be reloaded with funds by phone or online anytime once the recipient is holding the prepaid card, the ultimate in money transfer convenience.