Understanding Third-Party Fund Transfer Transactions
An online account is not just about making it easy to pay for your shopping cart. If you choose the right online payment platform, you can do more things. One of these is transfer funds to third-party accounts. What does that mean, exactly? Here are some facts that you should know.
Types of funds transfer
All banks can transfer funds in various ways. One is to transfer funds from one of your accounts to another account in the same bank. Another is to transfer money to your account to another person’s account in the same bank. The most difficult type of funds transfer is from your account in one bank to another person’s account in another bank. This is what is known as third-party funds transfers.
Back in the day, you have to go through a song and dance to transfer funds to third-party accounts. That’s no longer the case if you have a good online bank account. Now, it’s as easy as clicking a link and putting in the banking details of the third-party. The processing service will place the funds directly into the account of the beneficiary
Typically, you have to log into your online account and look for something like “Funds Transfer” or “Send Money.” You’ll see a form that you have to fill in the details of the transfer. In most cases, you also have to provide one of the following details of the beneficiary to your online money service:
- Bank name, country, address, and SWIFT/BIC code
- Full name and account number/IBAN, beneficiary address
- Intermediary bank name and country, address, and SWIFT/BIC code
It’s important to make sure you have the correct information of the beneficiary. A failed funds transfer usually comes with a penalty of around $50.
The great things about online third-party funds transfers are speed and security. Typically, the beneficiary gets the funds within seconds of the transfer, and the processing service will protect the transfer on either end with several layers of encryption and safeguards. It charges a small fee depending on the size of the fund transfer, but definitely less than that for traditional bank or wire transfers.
This is a particularly important service for people making multiple transactions to several parties outside the country and using different currencies. You want an online payment service that uses the SWIFT system for secure and reliable communications.
If you have a multi-currency online account, the transaction will be smooth and stress-free. In addition, you also have a digital record of all your third-party fund transfers, meaning, your assets are more protected.