Transfers of funds are quite interesting and topical issue, so today we continue our review, and consider our attention it a great area of transfer of funds through non-banking remittance services.
In the previous post we examined the characteristics of bank transfers. However, bank transfers are only one part of all transfers, a significant portion of the transfers are made also through non-bank organizations.
A non-bank transfer of funds is a transfer which is made through the non-banking remittance services without opening a bank account.
The majority feature of non-banking payment services is in the fact that You can send money worldwide and receive funds worldwide but only within one system.
When transferring funds through the bank account you can transfer funds from one bank to any other. In carrying out non-bank money transfer, you can transfer money in one office of financial company and receive them in its other office. Although it is often the banks are representatives of non-bank payment systems, so for transfer you still have to go to the bank.
On the other hand transfer through non-bank payment systems can be much faster, the beneficiary may receive money already a few minutes after the transfer (immediate payment service).
Let’s consider the main features of non-banking money remittance:
1. Types of payment systems.
Payment systems that transfer funds may be national and international:
- A national payment system is a system that operates in a single country.
- An international payment system is a system that operates on the territory of two or more countries.
It is clear that for transfers within the country you can use a national or international payment system, but for the foreign transfer you only need to choose the international system of payments.
Thus it is necessary to know is it payment system branch in the location of payee, because otherwise the payee will have to find the closest office, which can be located far enough.
2. The number of transfer’s currencies.
Banks if necessary, convert the transfer currency, but payment systems often pay out the funds in the currency in which the sender made transfer.
Also non-bank payment systems may use a limited list of currencies for payment. Often this can be such currencies as the US dollar and the euro.
If you need to deal with another currency you must find out whether the system provides the transfer of such currency.
3. Payment details.
As with a bank transfer, for the implementation of the non-bank transfers it is necessary to define the transfer details and information about the payer and payee.
Name and data of the ID document is the most often payer information needed.
Most often for the beneficiary also required special details of the payment.
Special details of the payment that the recipient should know can be a special secure code password, a digital transfer number or other details that allow to clearly beneficiary identifying.
The payee, when receiving a transfer should present a passport or other document proving the identity.
4. Transfer fees.
Non-bank remittance service typically charge fees for transfer as a percentage of the amount of such payment.
If the bank transfer fee rarely exceeds 2%, the percentage of payment systems can reach even 15%.
Therefore, the sender must know the size of merchant fee before transfer implementation.
The priority payment systems in non-banking sector are the Western Union and MoneyGram, which belong to world non-banking financial services.
These systems working in the financial services market already for a long time (e.g. Western Union for more than 150 years) and they have an extensive network of representative offices around the world.
In every country there are also a lot of their money transfer systems. So when you make choices for the transfer payments system analyze the conditions and rates of each of them.
After reading the above listed features, I hope you can choose the best non-bank money transfer system and will have possibility to make quick transfer conveniently every time you need.