We all have friends and family to whom, at some point or the other, we’ve had to send money. We know that money is of the essence when it comes to events like sickness, unemployment, fee submission and more. Since you do not always hand in the money to the person physically, there should be viable options to equip you with the same. So which method should you use to send money quickly to friends and family? Let’s take a look at all the factors that you should ponder before choosing a suitable method.
The recipient’s requirements
You need to consider the following when you’re going to send money to friends or family:
What is the reason for sending money?
You need to ask if this is a single-purpose transaction or a recurring thing like money for buying groceries or essentials.
Does the person in need own an account?
Inquire if the recipient has a checking or savings account, as transfer obligates both parties to have them at times.
Are they tech-savvy?
Not everyone is used to the knicks and knacks of technology. However, options like P2P transfers are convenient, and if your loved one is fluent in using technology, this can be a suitable method.
Best ways to send money quickly
Zelle is a P2P service that has a vast network of over 750 banks and credit unions. It is incorporated on the websites of many credit unions and financial institutions too. To send money through Zelle, the sender, and receiver should have a dedicated account, registered at Zelle with a phone number and email.
- This option is best for payments that need to be done on a recurring basis and for people who are comfortable in using online banking services.
- The transfer speed of Zelle is unparalleled as it does so within a few minutes and takes up to 3 business days for first-time users.
- A complete transaction cannot be reversed on Zelle, so make sure you enter the correct amount and choose the right recipient while sending the money.
2. Digital gift card
Digital gift cards are offered by many merchants and accepted by the same too. You can find them at giftcards.com or giftcardmail.com. You can send a gift card on the same day or schedule it for later use, too. Gift cards are operable at various businesses, hotels and food delivery companies like Grubhub or Doordash.
- These are great options if you are looking for a one-time transaction, online or offline.
- The speed of delivery is 24 hours on websites like giftcards.com or giftcardmail.com
- Gift cards are easy to use and secured, as the recipient will receive one through email which does not require any bank account detail.
3. Third-party Peer-2-Peer applications
Some prominent P2P services are PayPal, Venmo, Square Cash, and Apple. It is great if both the sender and recipient have the same application on their device. However, free delivery on such apps comes with a time delay. If you want a quick transfer, a fee will be imposed, which usually is 1% of the total amount and a maximum of $10. Some of these services often provide debit cards to access funds.
- This option is the most suitable for people who are not in a hurry and have the same applications on the devices. If they want quick delivery, they can choose the fee option too.
- Depending on your choice, it can take many days or can be in minutes.
- The payments cannot be reversed once they are completed. These applications also use the 2FA process to secure that data. While Apple Pay Cash also allows fingerprints and face recognition.
4. Prepaid debit cards
Just like we use debit cards for purchasing and paying bills, prepaid cards allow you to make transfers by adding amounts of money beforehand into the card. It is advisable to use two debit cards, one for transferring money, and the other one for your use. You can also have an American Express’s Bluebird that provides the option of creating sub-accounts with the master account, with a separate card for each. You will have the option to link these accounts to the bank account and transfer money freely across different accounts. These cards might have a monthly fee, it is best to do thorough research before choosing an ideal one.
- It is ideal for people who want trivial formalities while transferring money and do not have a bank account.
- Transactions are complete in a very short period among cards of the same type.
- These require your information like name, address, Social Security Number, etc. The security factor may vary from company to company.
5. Wire transfer
This real-time transfer option is provided by traditional banks and usually imposes a lot of transfer fees on every money transfer. If the transfer is time-sensitive and you are sending large sums, then this option will be relevant for you. However, if you are not in a rush there is also a fee-free or low-fee option. This includes sending money to a linked account through an ACH transfer.
- This is best for hefty sums that you only need once.
- The transaction is complete within a few minutes.
- It is under scrutiny by the Federal Reserve System that applies to both government and banks. Remember, you cannot reverse this transaction.
6. Money order
Money orders are always mailed to the recipient at a relevant address. These can be through the post office, Western Union, or Walmart. They charge a minimal fee. A money order can be cashed easily through the mobile app or the location through which it was sent.
- This option is suitable for receivers who do not have access to the internet or bank accounts and recipients who want to receive money online.
- The transfer completes within 1-3 days via priority mail.
- A receipt is crucial as it will help you when your money order is stolen by replacing it.