How to Send Money Online

Peer-to-peer (P2P) payment apps let you send money directly from your phone to friends and family using their email, phone number, or username. These apps connect to your bank account or debit card and make it super easy to split bills, send birthday gifts, or pay someone back for pizza.

Here’s how to send money through a P2P app:

1. Download an app and link your bank account or debit card
2. Find the recipient by their username, email, or phone number
3. Enter the amount and confirm the details
4. Hit send

Transfers typically arrive to the recipient’s app instantly or to their bank account within a few business days. You can often pay a small fee for instant bank account delivery.

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 of use: Most P2P services are easy to download, letting you quickly find friends and send money.
• Cost: Sending money via P2P apps is often 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: Not all apps let you send and receive payments across different payment platforms.
• 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.

Sending money is often free, and the funds are typically 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 may limit how much you can send in a set timeframe.
• Domestic only: Some 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, and bank account details, including their account and routing numbers.

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.

Sending money internationally

Wire transfers are often a good option for sending money to another country. You’ll need the recipient’s bank name, address, SWIFT code (a unique identifier for routing international transfers), and sometimes an International Bank Account Number (IBAN) for certain countries.

International wires usually take one to five business days and cost more than domestic transfers. Expect fees from your bank and possibly foreign transaction fees, so ask about the total before you send.

The best method depends on your specific situation. Consider these key factors:

• Who are you paying? Same-bank transfers are fastest and safest when you share a financial institution.
• Where are they located? International transfers typically require wire services.
• How much are you sending? Larger amounts need wire transfers due to app limits.
• How fast does it need to arrive? Bank apps offer instant transfers, while P2P apps and wires take longer

Different methods have different limits and timing. Here’s what you need to know:

• P2P app limits: Usually capped at a few thousand dollars per week or month until you verify your identity. These aren’t meant for large purchases.
• Bank transfer limits: Your bank sets daily and monthly limits to protect your account. Contact customer service if you need to send more.
• Wire transfer limits: Much higher limits, often up to six figures, making them ideal for major purchases. Expect stricter verification for large amounts.

Small transfers can be instant, but larger amounts may take a day or two for security checks. Always confirm the arrival time before sending.

When sending money online, you can protect yourself with these security practices:

• Only send money to people you know and trust
• Verify all details – recipient info, username, and amount – before confirming
• Enable multi-factor authentication on all your accounts
• Never share your login credentials with anyone
• Confirm unexpected requests through another channel to avoid phishing scams, even from known contacts

Sending money online has never been easier, and you’ve got plenty of options to choose from. The best method depends on who you’re paying, how much you’re sending, and how quickly it needs to arrive. Whether you choose a P2P app, bank transfer, or wire, you can now make the right choice for your situation.

For more insights on moving funds across institutions, check out our guide on transferring money between banks.