Thanks to the time that we live in and the technology we have, there are tons of methods to send funds. However, there is still a major question we need to answer: are digital transfers or traditional bank transfers better? Here is a fast look at both options to see what works for you.
Most banks have online bank transfers that their clients can use. For this article, let us focus on other digital payment methods, such as PayPal and AvantPay, when we make our comparisons.
Mobile money transfer options are easy; mobile payment methods easily help people pay for school fees, taxes, bills, etc. You may use them for international transfers, too! A digital money transfer is similar to regular bank transfers, but they are much more convenient. Making a few essay transfers do not mean you have to wait in long lines; you can use your phones to complete transfers within minutes.
It is usually affordable to make a mobile money transfer, too. There are usually lower fees, interest rate, exchange rates, etc., when you use mobile money transfers, which means it is more affordable for many people. Plus, it is usually great if you make transfers regularly.
Digital money transfers are usually safe like bank transfers, as long as you select a reputable payment service. Many payment services get protected by the departments that financial institutions are protected by, so they often follow similar regulations.
However, it may be difficult to use a digital money transfer service if you do not own a smartphone. Additionally, many of the apps will require relatively newer phone models.
You are also not completely protected when you use digital money transfers. Scammers will still find ways to sell you illegitimate services/products, so the digital money service company will not protect you if you send money to a scammer. Plus, scammers can still send fake emails and texts that can trick you into clicking faulty links, sending personal info, etc. to steal your information or money.
Traditional Bank Transfers
There may be little to no fee depending on how much and where you are transferring cash. For example, you may not have a fee or a very small fee if you send money to another account within the same financial institution.
Plus, some people prefer regular bank transfers. Certain people may be old-fashioned, so they may prefer an established institution to transfer cash. Plus, some people and businesses may only accept bank transfers as payment/
However, banks can also cost you a lot of money, especially if you send a lot of money, the exchange rates, international transfers, etc. Plus, there is a huge variety of fees. Other banks may have better rates for specific service, which means you may need to open several bank accounts for your different needs.
Another issue that banks have is customer service. Trying to fix an error. Fixing your funds, changing details, have a question, etc., could mean you wind up on the phone all day ten wait weeks to fix the problem.
Regular bank transfers and alternative digital money transfers both have their pros and cons. However, there are usually more benefits to using digital money transfers over bank transfers because they are cheap, accessible, and convenient.