Your brother is stuck in a small departed town in foreign country. His car was stolen along with his money and he needs your immediate help. You have to send him some cash as soon as possible, but how will you get the money to him?
Your daughter suddenly loses her job. She calls you up asking for some money for the monthly rent. What are you going to do to help her?
For the most of the people money transfer can be a tricky problem. The speed and the flexibility is of greater importance when you want to send money urgent, but the quicker and flexible it is, the more you’ll pay.
As it seems, there are numberless different ways to transfer money between people, who are separated by distance. In this article I’ve pointed out four of the most popular ones. Each opportunity has some pros and cons to it.
With Western Union the process is very simple – you just have the person you’re sending money to go to an agent location with a form or ID and you can send money from your computer or from another agent location. In a few minutes the recipient has cash in their hands.
Pros: It’s quick and requires only a form of ID from the recipient.
Cons: Compared to other methods it’s rather expensive and it does require that a Western Union office be available near the recipient.
When to use it: A person has rather limited resources and needs money instantly.
Basically electronic transfer means to transfer money from one account at a financial institution to another account, either the same institution or another. This is not one of the fastest ways to send money. It can be a preferred plan of money transfer if it doesn’t need the money to be there immediately.
Pros: In most cases costs nothing and can be done from your computer,all you need is just a routing number and an account number.
Cons: It takes a several days to make it happen.
When to use it: The recipient has a bank account and some time.
You can send money orders from any post office. Anyway, you should keep in mind, that this solution works best when you’re sending a small amount(up to £250 ). Furthermore, the recipient may need to use check-cashing services to cash it, which means 5% or so off the amount.
Pros: The recipient should be able to receive mail.
Cons: It costs between 50p and £12.50, depending on the amount of money and it takes a few days to arrive
When to use: A person has no bank account and limited resources
Basically checks and electronic transfers are, in the end, the same thing without the paper document.In these days checks are surpassed by electronic transfers for person-to-person money transfers.
Pros: It’s extremely convenient and virtually free.
Cons: It takes a few days to arrive, a person has to be able to receive mail and should have a bank account. If they don’t have a bank account they’ll have to use a check-cashing service which is additionally charged.
When to use it: Most uses that aren’t covered above, but in my opinion the electronic transfers work better.