Advantages and Disadvantages of Money Transferring

by David Botham Writer

Money transfer in this age is a concept which is not new and is known even to school and college students. Money transfer can help in quick access of money in less time period from one location to another location. Most of the e commerce transactions and important business deals today operate on money transfer principle

Money transfer actually is a service that allows anyone to take cash from the credit card and put it into a current account. It is quick and easy thing to do. One can do so anytime by using his account 24*7.

Money transfer can be needed when one is short of money, during business deals, in emergency, holiday outing or other circumstances.

Money transfer generally comes in following payment modes of systems like Email money transfer, Paypal method, Giro or direct deposit, ETF or electronic fund transfer, money order and wire transfer. Payday loans and Payday Advance is sometimes considered as Money transferring.

Let us see some advantages and disadvantages of Money transferring

1. Advantages of Money Transferring

A) Speed

Money transfer can be done instantly and processed within a 1 or 2 days helping to manage the finances.

B) Security and Privacy

Immediate confirmation of money sent and received is made. Privacy is maintained individually.

C) Flexibility and Convenient.

Transfer of money takes only some minutes making it easier to take money and roam from one location to another.

D) Good exchange rates.

Users can get the benefits of prevailing exchange rates of the country and also the bank.

E) Low transfer charges by the bank.

F) Past history system

You can check histories and present status of your transfers from anywhere in the world

G) Direct deposit facility

This reduces paper work of writing and issuing cheques.

H) Direct facility of debit and credit

Electronic payments reduce paper money and cheques as one can pay in shopping or bills by plastic cards that help in money transfer. This reduces the strain to carry paper money in pocket. Debit card will directly take out the required money from your bank account for which transaction has been made.

2. Disadvantages of Money transfer.

A) Compulsory transfer fees by online services

Sometimes, online services take the advantage of having their monopoly and charge some transfer fees in return of money transfer. Since online services are fast, one is bound to give them the fees

B) No guarantee of secured data of credit and debit card transactions.

Sometimes hackers might infiltrate by latest software into the machines of debit and credit cards and take out important pin or passwords and use it against you.

C) Danger of hacking of bank accounts and passwords

The hackers can infiltrate into bank account softwares and websites and take your account data and passwords and use it against you.

D) Occasional case of technical difficulties.

E) Accounts can be frozen by authorities for months if they suspect fraud

So we have seen here that money transfer has its own advantage and disadvantage, but ultimately it can be used more for its advantages.

David Botham is an expert in finance and is currently researching on advantages and disadvantages of money transfering and radical financial tactics for the common man.