How Online Money Transfers Work
In this century no one uses the old-fashioned concept of wiring money. Rather with the infusion of modern technology in banking, electronic funds transfer has come up. You surely must be using EFT for all kinds of transfers. It is a very simple and handy way to transfer money from one bank account to another bank account electronically. Note that data is exchanged in the process and not paper money. If you use a debit card while shopping, money is transferred from your checking account into the store’s banking account. Similarly, direct deposit payroll moves money from your employer’s bank account into yours. Such are examples of EFT and in some cases of online money transfer.
Keep in mind that online money transfer is no synonymous to EFT. It is rather completely different. It is nothing about paying bills over the internet. Online money transfer is the modern day counterpart of wiring money. Through this system you can transfer money (or the data that represents that money) from you to another person instantaneously. These generally involve very less steps and information. You will require the contact information such as a cell phone number or an e-mail address for the sending and receiving parties linked to a bank account. Online money transfers are made at the cost of a very small amount of fee from a secure Web-based service via any computer with Internet access. You need not bother yourself by going to money wiring office, telegraph station or a bank.
So, this is exactly how you transfer money in modern times!