Online Money Transfer: How to Send Money Online 

Online Money Transfer: How to Send Money Online 

With the technological advances of the 21st century, sending money online has become an increasingly popular method for transferring funds.  

While convenient and straightforward, make sure you consider a few things before sending money online, such as exchange rates, fees, and security. Additionally, there are different benefits to sending money online that you should be aware of. 

In this article, we will go over everything you need to know about how to send money online. By the end of this guide, you’ll be an expert on the topic! 

Common Reasons to Send Money Online 

There are many reasons that people send money online. Some of the most common reasons include: 

  • To pay for goods or services

This is perhaps the most common reason that people send money online. Whether you’re paying for a service or buying an overseas property, you’ll need to send money online in order to complete the transaction. 

  • To send money to friends or family

Sometimes we need to send money to people who are close to us but don’t live close by. Sending money online is an easy way to do this, and it’s usually free or very low-cost. 

  • To make an international payment

If you’re doing business with someone in another country, you’ll need to send them money electronically. This can be done easily with a service like PayPal or Wise

The Basics of Sending Money Online

When you’re sending money online, there are a few things you’ll need to keep in mind. First, you’ll need to make sure that you have your own and the recipient’s banking information, such as their account and routing number

Next, you’ll need to decide how much money you want to send. This will be based on the current exchange rate and the amount of money in your account. 

You’ll also need to choose a method of payment. There are several options available, including credit cards, debit cards, and bank transfers. Once you’ve made a choice, you’ll be able to enter the amount of money you want to send. 

Finally, you’ll need to confirm the transaction by entering your password or PIN number. Once the transaction is complete, the funds will be transferred from your account to the recipient’s account within a few days. 

The Benefits of Sending Money Online


One of the biggest benefits of sending money online is the convenience it offers. You can send money anytime, anywhere – all you need is an internet connection. This means you don’t have to take time out of your busy schedule to go to the bank or post office. 

Another big plus is that you can send money to anyone in the world – whether they’re in the next town or across the globe. All you need is their email address or phone number. And if they don’t have a bank account, there are plenty of other ways to receive the funds, such as a mobile wallet. 

Finally, many online money transfer services offer competitive exchange rates and low fees, so you can get more for your money. 

The Ability to Send Money Online 24/7

Another great benefit of sending money online is that you can do it 24 hours a day, seven days a week. This means you can make international payments outside of regular banking hours, which can be very helpful if you need to make an urgent payment. It also means you don’t have to worry about banks being closed on weekends or public holidays. 

The Safety and Security of Sending Money Online

When it comes to safety and security, sending money online has several advantages over traditional methods like cash or cheques. 

For starters, most reputable online money transfer services use encryption technologies to protect your personal and financial information from cybercriminals. They also have strict anti-fraud measures in place to prevent fraudsters from gaining access to your account or making unauthorised transactions. 

Finally, many online money transfer services offer buyer protection policies that will refund your funds if something goes wrong with the transaction (e.g., if the recipient doesn’t receive the promised amount).  

Different Ways to Send Money Online 

Bank Transfers 

Banks offer the ability to send money online to both individuals and businesses. The sender and recipient must have a bank account with the same bank, or with an affiliated bank. Sending money online through a bank is typically free if both parties are using the same bank. 

Some banks may charge a fee for sending money to another bank. When sending money online through a bank, the funds are typically available immediately or within one business day. 

Sending Money Using Bank Services

If you have a bank account, you can usually send money online by logging into your account and selecting the option to send money. You will then need to enter the recipient’s name, account number, and routing number. Some banks may also require you to set up a separate transfer account. 

To send money using online banking, you will typically need the following information: 

  • Your bank account number 
  • The recipient’s bank account number 
  • The routing number for the recipient’s bank 
  • The amount of money you want to send 

Online Money Transfer Services 

Money transfer services allow users to send money to recipients in other countries. These services typically have lower fees than banks and can be used to send money to recipients who do not have a bank account. 

Money transfer services often have higher exchange rates than banks, so it is important to compare rates before choosing a service. When sending money online through a money transfer service, the funds are typically available within one business day. 

Sending Money Using a Money Transfer Service

There are many companies that offer international money transfer services, such as Western Union and MoneyGram. To use these services, you will need to create an account and then provide the recipient’s name, address, and phone number. You will also need to know the recipient’s bank account information in order to make the transfer. 

Some companies may require you to pay a fee in order to use their service. Fees vary depending on the company and how much money you are sending. Exchange rates may also apply when sending money abroad

Peer-to-Peer Payments 

Peer-to-peer payments are becoming increasingly popular as they offer a convenient way to send and receive money without using a traditional financial institution, such as a bank or money transfer service.

P2P platforms such as PayPal are among the most popular, although there are other options available (e.g. Venmo). When sending money via peer-to-peer payments, the funds are usually available immediately or within one business day at most. 

Sending Money Using a Peer-To-Peer Payment Service

To use these services, you will need to create an account and connect it to your bank account or credit card. You will then be able to send money directly from your account balance or credit card limit without having to pay any fees (although some services may charge a small percentage fee for transfers made with a credit card). 

Different Factors to Consider When Sending Money Online

Exchange Rate

The first factor to consider when sending money online is the exchange rate. The exchange rate is the rate at which one currency can be exchanged for another. When sending money internationally, you will need to take into account the current exchange rate so that you know how much your recipient will receive in their local currency. There are a few different ways to find out the current exchange rate. 

It’s also important to keep in mind that the mid-market rate is not always available to consumers. Banks and other money transfer providers add a margin on top of the mid-market rate to make a profit, so it’s a good idea to compare rates from different providers before making a decision. You can typically find out the margin by checking their website or contacting customer service. 


Another factor to consider when sending money online is the fees charged by the sender and/or recipient’s bank, as well as any third-party providers involved in the transaction. When sending money internationally, there are typically two types of fees: foreign exchange (FX) and transfer fees. 

FX fees are charges assessed by banks or other financial institutions for exchanging one currency for another. Transfer fees are typically charged by third-party providers like Western Union or MoneyGram in addition to any FX fees assessed by banks. 

Both sender and receiver may be charged these types of fees, so everyone should ask about all potential charges before initiating a transfer. Fees vary depending on factors like how much money is being sent, where it’s being sent, and how it’s being sent (e.g., bank-to-bank transfer, cash pickup, etc.).

A good rule of thumb is that international transfers tend to be more expensive than domestic ones because there are more parties involved in processing the transaction (e.g., banks in both countries, foreign exchange providers, etc.). 

To avoid any surprises, we recommend asking your bank or third-party provider about all potential fees upfront so that you can factor them into your decision about whether or not to send money and how much money to send. 


When sending money online, you should be mindful about security, as some methods are more secure than others. For example, if you’re sending money from your bank account directly to another person’s bank account (i.e., a bank-to-bank transfer), then your transaction will usually be processed through an automated clearing house (ACH). 

This type of transfer typically takes longer than others but is very secure since both banks are involved in processing the transaction and verifying each party’s identity/account information.” 


The fourth factor to consider when sending money online is the speed of the transfer. The speed will depend on the method you choose as well as the banks/financial institutions involved. 

For example, a bank-to-bank transfer will typically take a few days to process, while a cash pickup can be done in minutes. If you need the money to be available to your recipient right away, then you’ll need to choose a faster but potentially more expensive option like a cash pickup or wire transfer

Security and Safety When Sending Money Online

When you send money online, you are typically required to provide some personal information, such as your name, address, and bank account number. This information is necessary for the transaction to be processed. 

However, there is always a risk that this information could be intercepted by someone who is not supposed to have it. There are a few things you can do to keep your personal information safe when sending money online: 

  • Only provide the minimum amount of information necessary

When you are asked to provide personal information, only give the bare minimum required for the transaction to be processed. 

  • Make sure the website is secure

Before entering any personal information on a website, ensure the site is secure by looking for https in the URL and a closed lock icon in the browser window. 

  • Don’t email personal information

If a website asks you to email them your personal information, this is a red flag that they are not taking security seriously. Do not proceed with this transaction. 

Protecting Yourself From Fraud When Sending Money Online

In addition to keeping your personal information safe, it is also important to protect yourself from fraud when sending money online. Unfortunately, there are people who will try to take advantage of others by claiming they need money for an emergency or promising a high return on investment if you send them money first. 

Here are a few things you can do to protect yourself from fraud when sending money online: 

  • Research the person or organisation you are sending money to

If you don’t know the person or organisation well, do some research on them before sending any money. Try doing a Google search on their name or looking for reviews from other people who have used their services. 

  • Be wary of promises of high returns with little risk involved

Anytime someone promises you excessive financial gain with little risk, it should set off alarm bells in your head. Be very sceptical of these offers and do not send any money unless you are 100% sure it is legitimate. 

  • Never send money upfront without knowing what it will be used for

If someone asks you to send them money upfront without knowing what it will be used for, this is another red flag that they may be trying to scam you. 

  • Consider using a secure payment service

If you are sending money to someone you don’t know well, consider using a secure payment service, such as PayPal. These services provide an extra layer of protection by holding the funds until the recipient has confirmed they have received them. 

Transfer Limits  

There is no set limit for sending money online, but most banks have limits in place for security reasons. For example, banks usually allow their customers to send between $5,000 and $10,000 per day via their online money transfer services. If you need to send more than that, you’ll need to do so in multiple transactions or visit a branch in person. 

Best Ways to Send Money Online 

Currencies Direct
  • Bank-beating Exchange Rates
  • Zero Transfer Fees
  • Personal Currency Expert Advice
  • Bespoke Currency Solutions
  • The Most Trusted Money Transfer Service
  • 5-Star Trustpilot Rating from over 8,000 Reviews
Clear Currency
  • Highly-competitive exchange rates
  • Zero Transfer Fees
  • Dedicated Currency Strategy
  • Personal Currency Support
  • FX Strategy Tools
  • FCA Regulated 
Key Currency
  • Excellent Exchange Rates
  • Zero Transfer Fees
  • No Hidden Fees
  • Award-Winning Service
  • 5-Star Trustpilot Rating from over 1,000 Reviews

1. Currencies Direct 

Currencies Direct

Providing competitive rates for cross-border payments since 1996, Currencies Direct offers a wide range of services. Whether you’re sending money overseas for business or for personal reasons, there are more than 60 currencies available. 

Once you’ve completed the application process and received approval for a Personal, Business, or Online Seller account, you can start sending money. 

In foreign exchange markets, companies earn money by applying spreads. While Currencies Direct’s exchange rates are marked up, they remain competitive and considerably cheaper than those of most banks. 

You can transact fee-free with Currencies Direct. Third-party providers might charge additional fees, however, which the company cannot control.  It usually takes 24 to 48 hours for Currencies Direct transfers to reach their recipients. 

Before transferring funds, ask the customer service team for an estimated delivery date. Exotic currencies may take longer to transfer than common currencies. 

You can read our comprehensive review of Currencies Direct for further information.

2. Clear Currency 

Clear Currency

You can easily and securely transfer money internationally using Clear Currency. By using a forward contract, you will be able to take advantage of favourable exchange rates for up to one year. 

Clients can pay their employees and suppliers from multiple locations simultaneously using Clear Currency’s global payment system. Automated currency conversion also allows you to make safe and secure international payments. 

You can schedule payments in several currencies and manage inbound payments with Clear Currency. You can mitigate international payments and receipts by working with a dedicated account manager. 

Clear Currency offers competitive exchange rates that can save you money. For the best rates, check live rates on the company’s payments platform or contact a specialist. You can process funds quickly and efficiently using Clear Currency’s automated payments system. You will receive your funds in the new currency within two working days of placing your funds in your Clear Currency account. 

No matter where you are, you can use Clear Currency to make currency payments 24/7, 7 days a week. The system allows you to monitor and control payments, as well as purchase currency. 

3. Key Currency 

Key Currency

Key Currency offers fee-free international money transfers since it operates at a lower cost than banks and specialist currency brokers. Key Currency provides customers with up-to-date currency data and excellent customer service.  

There is no better company for transferring money overseas or exchanging currencies than this one. Key Currency representatives guide customers through choosing a transfer service, exchange rate, and payment method, and include a personalised, one-on-one service.

Key Currency doesn’t provide real-time foreign exchange rates. The Key Currency system eliminates transfer fees, saving you both time and money. In most cases, Key Currency transfers reach their recipients within 1 – 5 working days.  

4. TorFX 


Foreign exchange services and money transfers are available through TorFX for a lower price than banks. In both the business and personal transfer sectors, TorFX is highly regarded for its reliability and trustworthiness.  

Customers can contact customer service representatives at any time for assistance with transfers. When sending money abroad, this service provider can save you time and money.  

With TorFX, you can get a free quote as well as register immediately and will be guided by a TorFX account manager during the quote process. TorFX offers fee-free transfers. Companies charge the difference between their own rates and mid-market rates. 

TorFX usually completes transfers within one to three days after you create your account. The currency, where the money is coming from, and where it’s going to determine this. 

5. OFX 


The services OFX provides for money transfers are also renowned around the world. In addition to the 55 currencies they can transfer, they have offices in more than ten countries. Over two decades of experience have enabled the company to develop systems to handle most transactions. 

In addition to offering low exchange rates, they provide excellent customer service. It is also possible to protect customers against sudden fluctuations in exchange rates by using a hedging strategy. 

6. Wise 

Wise has a reputation for being a trusted name in the industry. To provide greater transparency and eliminate hidden fees, the company is transforming the financial services industry.  

Wise’s biggest selling point is its transparency regarding fees and exchange rates transparency. After you enter the currency and amount, you will see the fees for each payment method.  

In addition to accessing mid-market rates and locking in rates for 24-48 hours, Wise customers can access rates unaffected by exchange rate fluctuations. The amount you transfer, the speed, and the currency you use may all affect the amount and the additional fees. 

Most fees range between 0.5% and 0.7% of the transferred amount. Transferring funds to a recipient’s account usually takes three to five days. 


When sending money online, it’s important to consider the exchange rate, fees, security and speed of transfer time. All of these factors can affect how much money you ultimately send or receive. 

By taking the time to research and compare your options, you can ensure that you’re getting the best possible deal. 

by Matt Woodley
Matt Woodley is the Founder of Money Transfer Expert and is a recognised expert on international money transfers. Matt holds a Bachelor of Commerce (BCom) majoring in Finance and Marketing and a Bachelor of Arts (BA) majoring in Economics and History from the University of Auckland.