Money order vs. money transfer, what is the difference?

difference between money order and money transfer
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Money transfer 

The electronic transfer of money initiated by one person to another is a money transfer. The old-school means of physically moving money from one person’s bank account to another’s through cheques, cash deposits at banks, and other techniques have been virtually removed thanks to services like UPI and online banking. One of the most noteworthy benefits of online money transfer is that it makes cash available immediately, unlike banks, which can take up to 2-3 working days to transfer money from one account to another.

Banks and financial institutions support online money transfer services, both international and domestic transactions. While domestic transfers are often free, international transfers are subject to fees. 

Online money transfer is one of the most efficient ways to send money. Domestic money transfers are completed in a day or two; however, international money transfers take a day or two. Internet money transfer is the most straightforward process compared to other options.

Money Order

A money order is issued the same as a paper cheque, but the funds are guaranteed, unlike a personal cheque. Money orders are purchased and created through an issuing institution, such as a bank. Still, they can also be bought and made at post offices, retail stores, convenience stores, pharmacies, etc.

You can purchase a money order even if you don’t have a checking account, and you can mail a money order even if you don’t know the recipient’s banking information. Because money orders are a safer alternative to sending cash, they are a popular choice for significant gifts.

What is the safest way to transfer money?

The protection of your funds should be your primary consideration when transferring money, whether as an individual or a corporation. The service provider you select must be approved, licensed, and controlled by the competent authorities in the marketplaces in which they operate. This offers you the assurance you need to send money anywhere globally.

As money is transferred directly from one bank to another, wire transfers are the most secure method of sending money. A third-party provider does not collect your information. You can only send money to those who have a bank account, ensuring that the other person’s identification has been verified.

Is a bank transfer is same as a money transfer?

The two methods go through the same steps. You need to send money to someone, but sending cash in the mail isn’t going to cut it. So, you provide your money to another service provider, pay them, give them your recipient’s information, and leave the task to them. They’ll get the money in a few days, and you’ll be good to go until your next transfer.

Let us discuss the difference between the two:

  • Depending on your bank, you may or may not need to set up your bank transfer in person. On the other hand, electronic money transfers can typically be initiated at any time and on any day.
  • Money transfers between bank accounts using bank transfers usually take 3-5 business days. It could take even longer if the bank is international. On the contrary, the quickest option to send international funds is through online transfers, usually processed within one business day. Depending on the effectiveness of the money transfer provider you’ve chosen, it may as well be instant in some situations.
  • Bank transfers can be expensive, especially when dealing with international payments. Online transfers can be costly, with some providers demanding hefty prices to process payments. However, if you look around, you may be able to find some transfer providers that charge a cheap and reasonable fixed fee.

 

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