Money Transfers generally refer to when one or more means of cashless payment or payment systems are used to complete a financial transaction. When you need to send or receive money quickly, a Money transfer mode like a bank transfer or a wire transfer might be the right tool for the job. We decided to explain 5 terms commonly used in money transfer contexts.

Remittance:

The term “remittance” was derived from the word ‘remit” which means to send back hence a remittance is a used to mean money transfer from one party to another, usually overseas. Remittance can be money sent to friends and family or even business partners. Today, more remittance is being sent especially into African and Asian countries because more people are moving abroad for work and education and more than ever, businesses are now being globally connected.

Electronic funds transfer:

This directly means the transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems, without the direct intervention of bank staff.

Wire Transfer:
A wire transfer is a form of electronic transfer of money. A traditional wire transfer goes from one bank or credit union to another using a network such as the Society for Worldwide Interbank Financial Telecommunication (SWIFT) or Fedwire. Usually, if somebody asks for a “bank wire,” they want the traditional bank-to-bank transfer. Wire transfers are quite slow, especially for international transfers that take an extra day or two.

4. Giro or direct deposit:

A direct deposit (or direct credit), is a deposit of money by a payer directly into a payee’s bank account. Direct deposits are the most commonly used form of money transfer, giro transfer is a payment transfer from one bank account to another bank account and initiated by the payer, not the bank.

5. Money Order.

A money order is a paper document that can be used as a form of guaranteed payment. A money order can be bought or cashed at a variety of locations including banks, post offices, credit unions and some retail stores.

At Nimerex, we make sending remittances and electronic money transfer online simple, seamless and convenient. Using Nimerex is as simple as sending a text message. Our low fees and fair exchange rates are shown upfront, and there are no hidden fees. Simply visit Nimerex to get started or download the Nimerex app on your mobile device to start enjoying fast and seamless cross border payments.