Money transfers are one of the most common financial transactions today. EFT and wire transfer are two methods commonly used in money transfers. However, there are many differences between these two methods.
Knowing what EFT and money transfer transactions are, the differences between them, and the pros and cons of each method will help you make the right decision when it comes to money transfer transactions. For this reason, in our article, we will provide information about EFT and money order transactions and explain the differences between these two methods.
What is EFT?
EFT stands for Electronic Funds Transfer and is a method of transferring money between two banks. Since this transaction is done between banks, it is only performed during the banking hours of the banks. When making an EFT transaction, the sender first transfers the amount required for the EFT transaction from his own bank and this is transferred to the recipient’s bank. It may take several hours for the EFT transaction to reach the recipient’s bank account.
How is EFT Done?
To perform EFT, the recipient and sender must have different bank accounts. To carry out the EFT transaction via mobile banking, it is necessary to select the option of transfer to another bank or EFT during the transaction hours, then send the IBAN, the recipient’s first and last name, the write down the amount and send it for approval.
What is a bank transfer?
Wire transfer is another method used to transfer money between banks. It is performed in the same way as an EFT transaction, but the transfer is faster if the sender and recipient have accounts with the same bank. In the remittance transaction, the sender goes to their bank and executes the transaction by specifying the required amount for the remittance transaction. The transferred amount is immediately transferred to the account of the recipient.
How to transfer?
To transfer money, you must first open the money transfer section of your mobile banking. Then click on the transfer option and enter the recipient’s IBAN, first and last name details and the amount to be sent will be written and approved.
Differences between wire transfer and wire transfer
There are many differences between wire transfers and money transfers. One of the main differences is that if the sender’s and receiver’s banks are different, the EFT transaction can take longer than the money transfer. Remittance transactions, on the other hand, are faster because they are made between people who have accounts in the same bank.
Another difference is the transaction costs. Banks often charge higher fees for EFT transactions than for wire transfers. However, in some cases it can be more beneficial due to the speed of the transfer process.
In addition, it is necessary to comply with the banks’ transaction hours in order to make an EFT transaction. As long as the money transfer is made during the bank’s working hours, it can be done without any time restrictions.
In what situations are EFT and Money Order preferred?
EFT and money transfer transactions offer different benefits depending on the needs of people who want to transfer money. If the sender and receiver banks are different, the EFT transaction may be preferred. In addition, larger amounts can be transferred via electronic transfer. Transfer, on the other hand, is a faster and cheaper method because it is done between people who have an account in the same bank.
Are wire transfers and wire transfers safe?
EFT and money transfer transactions are carried out securely by banks. However, due to an incorrect account number or other errors during the transaction, money may be transferred to the wrong person. Therefore, it is important to be careful during the process and enter the correct information.
Advantages and disadvantages of wire transfers and remittance transactions
EFT and money order transactions have advantages and disadvantages. EFT is a method that allows larger amounts to be transferred, but entails higher transaction costs. Transfer, on the other hand, is a faster and cheaper method, but can only be done between people who have an account in the same bank.
Are there limits to wire transfers and money transfers?
With EFT and money transfer transactions, there is usually no limit. However, banks may limit the transaction amount in some cases. These limits may vary depending on the banks and transaction amount.
How long do EFT and money transfer transactions take?
EFT and money transfer transactions are executed during banking hours. While the EFT transaction is in the buyer’s account within hours, the wire transfer transaction is executed immediately.
What are the trading hours for wire transfers and money transfers?
EFT and money transfer transactions are executed during banking hours. Transaction hours vary from bank to bank.
What is the main difference between wire transfer and wire transfer?
EFT is a method of transferring money between different banks. Transfers can be made between people who have an account with the same bank.
How much are the fees charged by the banks for EFT and money transfer transactions?
Banks charge transaction fees for EFT and money transfer transactions. These fees vary depending on the banks and the transaction amount. In general, an EFT transaction charges a higher fee than a remittance transaction.