Is it safe to transfer money online

When it comes to international money transfer, people (including me) are a bit guarded. Exercising caution is not bad at all. However, it is good to debunk the myths from the facts. Here are 14 Misconceptions about money transfer services:

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  1. International money transfer process is hectic

Many people believe that to sending money across the border you must walk into a Money Remittance Operator’s offices and queue before you can fill in the forms to send the money.

The truth is walking into the Western Union® or MoneyGram® office is just but one of the numerous choices available today. Nowadays, at the comfort of your couch, you can send money, thanks to online transfers. Even these MTOs offer online service, which is a more convenient alternative, and operates 24 hours a day, seven days a week.

With the advent of digital currencies and Fintech startups in the money transfer industry, there should be no more hustles. It definitely takes less than a week for your recipients to use the money you send them.

2. It takes days to process a transfer

There is wide belief that it must take at least two days for the recipient of the sent money to receive it. This assertion may be partly true. However, it is only true if you choose to use the traditional money transfer systems. Such systems take 3 to 7 working days to complete such transfers.

But not all money transfer service providers take that long. FinTech startups that have embraced the cryptocurrencies, including Ripple, only take seconds to transfer money overseas. So the duration the money takes to reach the recipient will depend on the choice of the service provider. The bottom line is that presently it is possible to receive money from abroad almost instantly.

3. International money transfer is expensive

International money transfer is not as expensive as some people or firms would want you to believe. However, if you use the conventional MTOs, you are likely to relinquish up to 12% of the amount you are sending, depending on the country you are sending to.

Those who choose to adopt the latest technology – Bitcoin and altcoins – can spend merely less than 1% to send whatever amount (regardless aif used as currencies or mode of transfer). Unlike money remittance operators, Fintech Startups that have adopted virtual currencies can facilitate such transaction without incurring extra charges, other than rates of currency conversion and paltry transaction charges.

4. Money Transfer Startups can’t handle high-value transfers

Never judge a book by its cover, or simply don’t allow their size to fool you. As simple and small as these firms may seem to be, they handle transactions worth billions of dollars. These startups are well equipped to handle high-value transfers, thanks to their technological sophistication. Nevertheless, because of regulations and compliance, the maximum amount one can send or receive may vary from one country to another.

5. Money transfer gives up your privacy

Traditionally, to send money you need to provide your details and the details of your recipient. And with the spying agencies and criminals preying on this data, you tend to be at risk of giving out too much information. However, this is no more. The new technology allows you to send or receive money without linking your details to the transactions. All you need is bitcoin wallet address, and that is it!

6. Using my bank in Sending or Receiving money is better

Though it may be convenient to receive money directly in your account rather than receive it and bank it later, inter-banks international money transfers take 3 – 7 days working days to process. On the other hand, online transfers take merely minutes if not seconds.

7. It doesn’t matter the system I use; regardless I get about the same amount

There is a misconception that the money transfer rates are flat across all systems. Online transfers are very cheap, but those that use the digital currency technology are even cheaper.

8. Online transfers are cheap but technical

Many people may know that using online money transfer is cheap, but there is a wide perception that using such a system is a preserve of the tech savvy customers. This take is not true as sending money online can be as easy as sending an email.

9. Online money transfer is risky

There are people who have never given online money transfer a chance on the premise that it is risky to use. But if this is true, then why do the two leading MTOs, Western Union and MoneyGram, offer online transfers as an alternative? Online transfers are just as safe as the traditional way of sending money, perhaps even more secure.

10. Creating Online Money Transfer Account takes time

There is nothing like online money transfer account if you choose the modern technology. All you need is a Bitcoin wallet address, which only takes minutes to create. Your recipient too needs such an address. Creating an online account is just as simple as creating Facebook or email account.

11. I can’t use online transfers as there is no customer service. What if I have questions?

Although online money transfer eliminates the need for you to walk into the MTO’s office, it doesn’t disconnect you from talking to the agency’s representative. There is a variety of online tools that allows you to connect and interact with the agency’s customer attendant in case you have questions. So your concerns are addressed at the touch of a button.

12. Writing a Cheque Home is Safer and Better

Sending a cheque back home cannot be a good option for you as it takes time, will attract processing charges in addition to foreign exchange commissions. What’s more, banks offer dilute exchange rates that water down the total amount you send.

13. Online Transfers are always safe

Online transfers may be safe yes, but not always. The internet is full of scams and scammers, and you should be careful the provider you choose to use.

14. Cryptocurrency is a money transfer tool for criminals

When you advise someone to use Bitcoin or digital currencies to transfer money, you are likely to get a cold shoulder. This treatment is probably because quite many people still believe that since Bitcoin has been linked to criminal activities because it is pseudonymous. While many people have assumed that their activities on the network are untraceable, this is not true. If the private keys of a users is identified, his identity can be easily revealed. Bitcoin is ultimately a technology platform. Currency is just one of the use cases.

Conclusion

The payment system, which constitutes the money transfer industry, has over the last 150 years evolved. However, the adoption of internet technology, which would make the transfer faster and efficient, has been rather slow in this industry due to misconceptions surrounding online money transfer service. With these outdated perceptions debunked, don’t let them stop you from exploring the cheaper, safer and quicker way of transferring money.

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