How to Send Money Online

Owe someone money for pizza last night, or need to send a birthday gift to a niece or nephew? A peer-to-peer (P2P) payment app makes it super easy to send money to friends and family.

These apps are a popular way to handle payments. You can send money in a few simple steps:

1. Download an app and connect your bank account, debit card, or credit card.
2. When you’re ready to pay someone, search the app for their unique user handle.
3. After confirming it’s the right user, enter how much money you’d like to send.
4. Confirm all the details and hit send.

Money transfers through P2P payment apps may take a few business days, though you can often choose to send an instant payment for a fee.

Pros and cons of P2P payment apps

Before you download the first P2P app you see, weigh the benefits and drawbacks of using P2P services.

Pros

• Ease: Most P2P apps make it easy to download the app, find your friends, and send money.
• Cost: Generally speaking, sending money via P2P apps is free or relatively low cost.
• Convenience: Using a smartphone app can be more convenient than carrying cash or writing checks.

Cons

• Domestic only: Most P2P apps don’t let you send money internationally.
• Competing apps: While some apps let you interact with other apps to send and receive money, others don’t.
• Fees: Apps may charge fees for using a credit card or for instant transfers.

Many online and traditional banks have a payment feature for transferring money built directly into their mobile banking app.

In most cases, sending money is free, and the funds are available almost instantly. As long as the recipient is enrolled, you’ll only need their email or phone number to send them money.

Pros and cons of bank app transfers

Using your bank’s app can be a helpful option, but here are the potential upsides and downsides.

Pros

• Security: You won’t need third-party apps to access your bank account or personal data.
• Speed: Money transfers via a bank transfer app are often nearly instant.
• Cost: Typically, banks and credit unions offer this money transfer feature free of charge.

Cons

• • Same-bank requirements: Sometimes, the other person must bank with the same financial institution. Some mobile banking apps include services like Zelle® to send money to accounts from other financial institutions.
  • Limited amounts: Banks often limit how much you can send in a set timeframe.
  • Domestic only: Most mobile bank apps do not allow international transfers.

Wire transfers are still a relevant way to send money electronically, especially for larger sums or international payments.

To wire money, visit your financial institution or use a wire transfer service. You’ll need the recipient’s full name, contact information, bank information, and bank account details (their account and routing number).

Pros and cons of wire transfers

Wire transfers are reliable, but they aren’t always the right fit. Here’s a deeper look.

Pros

• Large sums: Wiring transfers allow you to send and receive larger sums of money. That makes them ideal for large purchases, like a down payment on a home.
• International: Unlike most P2P apps, wire transfers allow international transfers of money.
• Security: Wire transfers are a safe and official way to send money electronically.

Cons

• Fees: Wire transfers typically include fees for the sender and sometimes for the recipient.
• Speed: Wire transfers are not necessarily instant and can take a few hours or even days.

So, what’s the best way to send money online? That comes down to a few key factors. Ask yourself these questions to figure it out:

• Who are you paying? If you and the recipient use the same bank, an in-app transfer might be the fastest and safest way.
• Where are they located? You’ll likely need an international wire transfer if the recipient is outside the country.
• How much are you sending? P2P and bank apps often have transfer limits. For larger sums, a wire transfer is probably your best bet.
• How fast does it need to get there? In-bank transfers are often instant. P2P apps can take a few days unless you pay a fee for an instant transfer. Wires can also take a few days, especially if they’re international.

No matter how you choose to send your hard-earned cash, it’s smart to practice a little caution. Here are some tips to avoid scams and keep your money safe:

• • Only send money to people you know and trust.
  • Double-check all the details, like the recipient’s username and the dollar amount, before you hit send.
  • Use built-in security features like PINs or multi-factor authentication to protect your accounts.
  • Never give away your account’s login credentials.
  • Be wary of unexpected payment requests, even from people you know. Their account could be compromised – it’s always best to verify with them through another channel.

Sending money online has never been easier, and now you know you’ve got plenty of great options to choose from. The best choice really depends on your specific needs – like who you’re paying, how much you’re sending, and how quickly it needs to arrive.

Chime members can use Pay Anyone to send and receive money instantly¹. Recipients only need a valid debit card to claim their cash if they’re not a Chime member.