How to transfer money via bank: 3 quick and safe steps

Are you looking for a fast and secure way to transfer money via bank to send to relatives, business partners, or handle urgent matters? Wire transfer is one of the most popular solutions today, ensuring money arrives quickly, sometimes even on the same day.

This article will help you understand what bank transfers are , what information you need to prepare, the costs involved, and when to use this method instead of writing a check or depositing cash. The content is presented simply and practically, helping you choose the right money transfer method and avoid unnecessary mistakes.

Method 1: Transferring money from one bank to another

Step 1: What is a wire transfer?

The concept of transferring money through a bank.

• Wire transfer is a form of electronic money transfer from one individual or business to another.

• The most common method is transferring money from bank to bank , ensuring speed and high security.

• After the transaction is complete, the sender's bank will provide a confirmation code for verification and reconciliation purposes if needed.

Conditions for transferring money through a bank

• Both the sender and the recipient must have a bank account (or a credit union account).

• This applies to both domestic and international transactions, subject to the regulations of each bank.

Information needed when transferring money

• Recipient's bank name

• Recipient's bank ABA code (for money transfers within the US)

• Recipient's bank account number

• Amount to be transferred

• Some banks may require additional details such as the recipient's name or the transfer description to increase accuracy.

What is the ABA code and what is it used for?

• ABA stands for American Bankers Association .

• The ABA code is a 9-digit code used to pinpoint the exact bank or savings institution in the United States.

• The sender's bank uses ABA codes to route the money to the correct recipient bank.

• You can find the ABA code here:

  • On a bank check (usually located in the lower left corner)

  • On the bank's official website

  • Or search online from a reputable source.

Step-by-step process for transferring money through a bank.

1. The sender provides instructions for transferring the money to their bank.

2. The bank receives and verifies the recipient's information .

3. The money is transferred electronically to the recipient's bank account .

4. Recipients usually receive the money on the same day , especially for domestic transactions.

Bank transfer fees

• The sender typically incurs a fee of $20–40 per transfer (depending on the bank).

• The recipient may also be charged additional processing fees, depending on the intermediary bank's policy.

• When transferring money through a bank, it's advisable to inquire about the fees beforehand to avoid unexpected charges.

When should you choose to transfer money via bank?

• When you need to transfer money quickly and in large amounts.

• When security is a priority, transaction confirmation is required.

• When you need to replace a check or paper money order.

Step 2: How to perform a bank-to-bank money transfer step-by-step

1. Check your account balance before transferring money.

• Make sure your account has sufficient funds to complete the transaction.

• Please double-check your bank account before making the transfer.

  • Check checks that have been issued but not yet debited.

  • Check the pending funds (money not yet credited to the account).

• After determining the actual balance , subtract first:

  • Amount to be transferred

  • Bank transfer fees

• This helps avoid errors such as insufficient funds or rejected transactions.

2. Contact a bank or credit union.

• Depending on the bank, you may be able to:

  • Make a money transfer via online banking.

  • Or visit the branch directly.

• If this is your first time transferring money , you should:

  • Call the bank.

  • Or go to the counter for accurate guidance.

• Some banks require you to register for wire transfer services beforehand .

3. Fill out the bank transfer form.

• You need to complete the wire transfer form with the following key information:

  • Sender information

  • Recipient's bank information

  • ABA code (for domestic money transfers within the US)

  • Recipient's account number

  • Amount to be transferred

• Please double-check the information because errors can cause delays in money transfers or prevent the funds from being recovered .

4. Identity verification as required by the bank.

• When transferring money directly at the counter:

  • A government-issued identification document is required.

• When transferring money via phone or internet:

  • The bank will require security verification (password, OTP code, verification question).

• This is a mandatory step to ensure security when transferring money through a bank .

5. Receive transaction confirmation code

• After the transaction is submitted, the bank will provide a transfer confirmation code .

• Save this code for:

  • Check transaction status

  • Reference in case of problems

• Note:

  • The bank processes transactions in the order they are received.

  • You may not receive confirmation immediately.

  • The recipient's bank also needs processing time before the money is credited to the account.

Step 3: How to transfer money internationally via bank, step-by-step, easy to do.

Prepare the recipient's bank information.

• For international money transfers , you need the recipient's bank's BIC (Bank Identifier Code) .

• The SWIFT code is the most common form of BIC, used to accurately identify banks globally.

• If you are transferring money within the European Union (EU) , you are required to have an IBAN (International Bank Account Number) .

• If you are unsure which code to use, ask your bank for assistance in looking it up to avoid mistakes.

Complete the international money transfer form.

• You need to fill out the international wire transfer form with the following information:

  • Sender's bank information

  • Recipient's bank information

  • SWIFT/BIC code

  • IBAN (if applicable)

  • Amount to transfer and currency type

• It's advisable to ask a bank employee to double-check the information , especially when transferring money for the first time or for a large amount.

Proactively work with the bank when there is a language barrier.

• When transferring money abroad, you may encounter:

  • Foreign language forms

  • Unfamiliar bank and branch names

• To avoid misunderstandings, please:

  • Call or visit the bank in person.

  • Please provide a clear explanation of each important point.

• This helps reduce the risk of transferring money to the wrong person or being charged incorrectly.

Understanding exchange rates when transferring money internationally.

• International money transfers always involve currency conversion .

• Before confirming the transaction, please check:

  • Current exchange rate between the two currencies

  • Do banks use buying or selling rates?

  • Are there any exchange rate difference fees ?

• For example:

  • If you convert from USD to EUR, the exchange rate will directly affect the actual amount the recipient receives .

• Failing to check the exchange rate beforehand can result in the recipient receiving less money than expected .

Method 2: International money transfers without a bank account

Step 1: How to transfer money via cash counter (no bank account required)

Understanding cash transfers at the counter correctly.

• Transferring money through a cashier is different from transferring money from one bank to another.

• No bank account is required for either the sender or the recipient.

• The recipient does not receive the money through a bank account , but uses personal identification documents and a confirmation code to receive the money directly.

Choose a suitable trading location.

• You can:

  • Go directly to the transaction counter.

  • Call the money transfer service.

  • Or visit their official website.

• Note:

  • Money transfer fees may vary depending on the method of contact (in person, online, or by phone).

  • You should ask for the total cost before proceeding.

Check and make sure you have enough money.

• After learning the transfer fee , please:

  • Add the fee + the amount you want to send.

  • Prepare the corresponding amount of cash.

• This is the amount you need to deposit at the cashier counter for the transaction to be processed immediately.

Provide sender and recipient information.

• The information that is usually requested includes:

  • Sender's address

  • Full name of the recipient

  • Location for receiving money

• Once completed, the money transfer company will provide you with a transaction code (receipt code) .

• You need to send this exact code to the recipient .

How will the recipient receive the money?

• When collecting the money, the recipient needs to:

  • Present photo identification.

  • Provide the correct transaction code.

• Payment will only be made if the information matches.

Step 2: Consider alternatives when transferring money electronically.

It's not just banks and cash counters.

• Besides bank transfers and cash transfers at the counter , you have many other options.

• Comparing options helps you:

  • Choose the money transfer method that best suits your needs.

  • Save time and money.

• Some popular online money transfer services currently available include PayPal .

Email money transfer

• Some financial institutions, particularly large banks in Canada , offer money transfer via email.

• The most popular service is Interac e-Transfer .

How money transfers via email work

• The money was not sent directly via email .

• The recipient will:

  • Receive an email notification

  • Answer the security question set by the sender.

• After successful confirmation:

  • The money is transferred directly to the recipient's bank account.

  • Email acts like an electronic check.

The outstanding advantage of transferring money via email.

• Very convenient !

  • The sender only needs the recipient's email address.

• Low cost :

  • The recipient is not charged.

  • The sender usually only pays around $1–4.

• Suitable for small, personal transactions that require speed and simplicity.

Step 3: Learn how to transfer money via PayPal

What is PayPal and how does it work?

• PayPal is a globally popular electronic money transfer platform , used by many individuals and businesses.

• The recipient must have a PayPal account to receive the money.

• The sender can transfer money using a debit or credit card ; a direct bank transfer is not required.

How money goes from PayPal to my bank account.

• The recipient's PayPal account is usually linked to a bank account .

• After the money arrives in PayPal:

  • The recipient can withdraw the money to their bank account.

  • Processing time typically takes several business days.

• Compared to bank transfers (wire transfers) , PayPal:

  • More convenient to use.

  • But it's slower when withdrawing money to your bank account.

PayPal transfer fees you should know

• For small domestic transactions:

  • The fee is typically 2.9% of the amount received + $0.30 per transaction.

• For international money transfers :

  • Higher fees

  • There are additional foreign currency conversion fees based on PayPal's exchange rate.

• The larger the transaction amount :

  • The percentage of fees tends to decrease.

• Recipients should calculate the fee in advance to avoid receiving less than expected.

When should you use PayPal?

• When you need to transfer money online quickly and don't want to go through bank procedures.

• When dealing with small to medium-sized transactions

• When the recipient doesn't need the money immediately on the same day.

References

1. http://www.consumerfinance.gov/askcfpb/search/
   ?selected_facets=category_exact:money-transfers
2. https://www.bankofamerica.com/online-banking/service-agreement.go
3. http://www.theswiftcodes.com/
4. http://www.nerdwallet.com/blog/banking/deal-wire-transfers/
5. https://www.paypal.com/home

Translated by: Rene Lee Nguyen .