A bank transfer, also commonly known as a credit transfer or a wire transfer, is a banking option that allows people to send electronic funds to another person or company wherever they happen to be in the world. In this article you will find out everything that you need to know about this particular method of payment.
A Very Quick Look at the History of the Bank Transfer
We now live in a world where absolutely everything seems to happen online. Many of us are not entirely sure how it came to be like, but we are not complaining as things are much easier now. For example, if we want to transfer money to a friend or a company that we are buying services from, we can go on our computers or mobiles and do it in a matter of minutes. But, how did we get here? Well, if we take a quick look at what has happened in the last 150 years, we can get a much better understanding.
Money has been around for over 3,000 years and, for most of this time, financial institutions and banks have existed as well. However, global industrialization completely changed the way that money could exchange hands. As more and more people began working with innovators and contractors overseas, a new method was needed for people to send and receive money. This is when the bank transfer came into being.
Since the 19th century, they have become one of the most popular and best methods of sending money around the world. The popularity of this money-sending method led to a number of companies being created that specialise in this service. Some of these companies still exist to this day, such as Western Union. In fact, Western Union is now one of the world’s biggest money transfer companies. These types of transfers were made possible thanks to the major advances in telecommunication technology. ATMs were soon introduced, and financial institutions started doing everything electronically.
In 1991 the World Wide Web was made available to the public and, before long, millions of people had a computer and a modem. Then, seven years later Wi-Fi came into being and we all know how dependent we have become on that. This improvement in technology led to a significant rise in e-Commerce, which meant that financial institutions had to find solutions so that people could transfer money online. These solutions were eventually found and now we can make bank transfers anywhere in the world without having to leave the comfort of our home.
How Do You Make a Bank Transfer?
There are a number of ways that you can carry out a bank transfer.
- Online bank transfer: Nowadays, this has become the most popular method because it is quick as you do not need to wait in a queue for your turn at the counter nor do you need to hold the line until a member of the bank’s customer service team can speak with you. To make this type of bank transfer, you simply need to log on to your online banking account, click the “Make a Transfer” option (the words might vary slightly depending on what bank you are using) and then follow the easy instructions that you are given.
- Telephone transfer: Call up your bank’s banking service and one of their customer service agents will talk you through the process. In some cases, though, you might actually be guided by an automated recording. Whether it is an agent or a recording, you should still find the process to be hassle-free.
- In-branch transfer: If you have the money as cash, you can visit one of your bank’s branches and pay it directly into the recipient’s bank account.
What Details Will You Need?
Whichever method you decide to use, you will usually have to provide the following details in order for the transfer to be successful:
- The date that you would like the payment to be made.
- The name of the company or business that you are paying.
- The account’s 6-digit sort code.
- The account’s 8-digit account number.
- Some sort of payment reference (this can be your customer number or name) so that the beneficiary knows who sent the money.
- You will also sometimes be asked to provide the address and the name of the bank that you are sending money to. This allows those who are responsible for processing your transfer to make sure that the sort code is correct.
How Long Will Your Transfer Take to be Cleared?
This depends on what bank you are using, but it will often take two to three working days before the money shows up in the recipient’s bank account. Sometimes, it can take four or five days. We now live in a time where you can buy something from your local fruit and vegetable store using your bank card and when you get home you will be able to log on to your internet banking account and see that the bill has been removed from the balance. So why can’t bank transfers be just as quick? Why does the recipient have to wait for their money?
Well, banks do not allow instant transfers due to the risk of fraud. They need to make sure that the money being sent hasn’t come about through illegal means. Once they are certain that it hasn’t, they will authorise your transfer. Another reason why they delay your transfer is that by holding on to your money, they earn a tiny bit of interest off it.
Therefore, with all this in mind, if you know that you are going to soon have to make a bank transfer, do your best to plan ahead.
How to Avoid Any Bank Transfer Issues
To make sure that you have no issues while making a bank transfer, follow these tips.
- Always double-check your details: Always make sure to double-check the information that you input. It can be tricky to receive your money if you accidentally send it to the wrong account. If you are making a bank transfer over the phone, then ask the customer support agent that you are talking to repeat the letters and numbers to you.
- Make sure you don’t overdraw: If you have not specified a payment date in the future, the money will leave the account immediately. Therefore, always make sure that you have enough money in your account to cover the transfer. Failure to do so could result in some expensive fees.
If You Are Using a Bank Transfer, What Fees Are Involved?
This depends on which bank you use as each bank has its own fees. Therefore, you will have to check with whatever bank you have an account with, in order to see what their bank transfer fees are. However, for most banks, when you are sending money to a person or company in the same country as you, the fees will be a lot smaller than if you were sending money to a bank account that is abroad. Some banks will not even charge their customers when they make a bank transfer to another account in the same country.
N.B. If the bank that you use state that there is no transfer fee for international transfers, you need to check the exchange rate that they will use. This is because instead of charging you a fixed fee, they might be converting your cash using unfavourable exchange rates.
Here Are the Pros and Cons of Using This Virtual Card
- Money can be sent anywhere: A bank transfer gives you the power to send money anywhere in the world. For example, if you live in Delhi and want to join a sportsbook based in Europe and would like to use bank transfer as your payment method, you won’t have any problems.
- Secure: Banks use all the latest security and encryption software, so you can be sure that your money will be received by the intended recipient.
- Widely accepted as a payment method: Whereas other methods of payment might not be accepted by a good number of betting sites, you can be certain that most (if not all) betting sites that you come across will allow you to make bank transfers to deposit money into your account.
- Difficult to get a transfer back: If you make a mistake and accidentally send the money to the wrong person, then you will find it extremely difficult to get your money back. Your only hope is that the person who received the money is an honest person and is willing to send it back to you. This is why it is important to always double-check the details that you have inputted.
- You will need to wait before you can play: If you are using a bank transfer as your method of payment for a betting site, you will usually need to wait at least two to three days before the money appears in your account. Therefore, unless you already have some funds in your account, you won’t be able to bet until your bank transfer has arrived.
Are There Banking Apps Available?
The answer is that it depends on the bank that you use. There are plenty of banks out there that gives their customers the opportunity to download an app which they can use for all of their banking needs, be that checking your balance, making a payment, or sending a bank transfer.
To find out if your bank offers an app, you will either have to contact them and ask, or simply search for the bank in the Apple Store or in Google Play.
Some Final Thoughts on Bank Transfer India
A bank transfer is a reliable and secure way of making an online payment and if you don’t mind waiting a few days before your money appears in your bookmaker account, then you definitely won’t have any issues with this payment method.
If this will be an issue for you, then you will need to choose another banking option. Thankfully, there are plenty of other options out there that you can choose from.