*Article contributed by Eunice Williams.
Gone are the days when the only way you can transfer money from one bank account to another is through an over-the-counter transaction. Indeed, fund transfer is one of the most common banking transactions. This is why banks and financial institutions work hard to make it easier for everyone. From online banking apps to third-party providers, it’s now more convenient than ever to transfer funds.
Still, there are plenty of things that you should take into consideration when conducting fund transfer in the Philippines. Keeping these details in mind will make every transaction more seamless. Here are some of the most important ones:
The Transfer Limit
Just like ATM money withdrawals, there are limits per fund transfer transaction when you do it online. Different banking apps and providers have different rules. For example, one bank may impose a Php50,000 transfer limit per day with a Php 25,000 maximum per transaction. Another bank may allow you to transfer that Php50,000 all at once. Some financial institutions may allow you to transfer higher amounts or even waive the limit if you pre-register or enroll the recipient into the system. There may also be certain memberships that can further increase or remove the fund transfer limit. Otherwise, take note of the amount specified of your bank so you won’t have any issues sending large amounts of money.
The Transfer Fees
When using a banking app, there are usually no fees or at least a minimal amount per transaction for same-bank transfers. For bank-to-bank fund transfer, the fees may be bigger. You may also be required to enroll the account beforehand. Meanwhile, when using a third-party application, the transfer fees will vary depending on the destination bank. If the fund transfer is a one-time transaction, you might not be worried too much about the transfer fee amount. However, if you regularly transfer money, the transfer fees will soon add up. Ask your bank for alternative methods, such as enrolling the receiving account or transferring via QR code.
The Availability of the Transferred Funds
For fund transfers within the same bank, the money is often instantly available. On the other hand, for fund transfers to other banks, the money might take a little longer before it can be withdrawn and/or used. The same goes with third-party finance solution apps. The standard waiting time is usually 3 banking days. Consider this factor, especially if the recipient needs to be able to access and use the money as soon as possible.
The Channels
As earlier mentioned, there are now more ways than ever to transfer funds from one bank account to another. One of the most common is through the use of a banking app. Many banks now have their own apps available on Google Play and the Apple App Store. There are also third-party providers that allow you to send money to any bank, among other functions. Again, these transactions can be either free or for a minimal amount.
Aside from mobile apps, fund transfer is usually available on the bank’s website through a dedicated URL. There are also ATMs that have a fund transfer feature so you don’t have to withdraw money and then deposit it over the counter.
The Exchange Rate
When you transfer money to people abroad, you have to take the exchange rate into account. There might be a slight difference, so make sure to provide a little wiggle room to make sure that the recipient gets the intended amount.
The Receiving Options
There are some fund transfer services that have a variety of receiving options aside from crediting the money into their bank account. For example, there are partner establishments where one can “cash out” the fund transfer. Upon the verification of the recipient’s identity and a few validation steps, the recipient can get the cash directly. Other services, especially those that facilitate international fund transfer, also have pick-up and delivery partners like local banks and courier services.
The Maintenance Schedules
Banks and financial service companies need to perform regular system maintenance to ensure the security of every transaction. Barring any emergencies, customers will receive a notification when these maintenance activities will take place. You should take note of these dates and make necessary adjustments to your fund transfer schedule.
The Security
Handling money is serious business. Nobody wants any single peso that they worked hard for to go to waste. Thus, you have to make sure that each fund transfer you do is as safe as can be. Check the security measures of the bank or the third-party app before you make a transaction. There should be 2FA or two-factor authentication for log-ins, as well as an OTP or one-time PIN to confirm transactions. For online transactions, make sure that the website is secure. It should have an SSL certificate; check the URL to make sure it starts with “https” instead of just “http.” The address bar should also have a padlock icon that you can click to verify the security of the website. With the help of technology, fund transfer has become virtually frictionless. Nevertheless, there are several factors at play to ensure this seamlessness. Keep the above-mentioned details in mind to make fund transfer truly convenient for you and your recipients.
*Article contributed by Eunice Williams.