What is a money transfer service?
Online remittances are the 2022 version of the telegraphic transfers of the old days. You can instantly send funds by transferring money (or data that acts as money) to another person.
As a rule, such remittance is associated with the contacts and personal information of the sender and recipient linked to an online account. For example, that can be their mobile phone number or an email address. Usually, all electronic remittances and transfers services provide them for a small commission through secure money transfer services.
How secure are electronic money transfers? Let’s dive into this topic.
Best Finance provides different levels of protection, such as phone verification from the sender and recipient (who must verify personal information), email confirmation, and even insurance that ensures your money is sent and your bank accounts are not hacked. Some service providers set limits on the minimum or maximum amount that can be sent, as well as a limit on the amount that can be transferred within a certain period.
To protect your money Best Finance advises:
- To transfer money to people you know and trust, just like with cash. Never make remittances to strangers.
- To call the person requesting the money transfer to prove their identity. Make sure you transfer funds to the right person at the correct email address.
- To pick a security question, the answer to which no one but you knows. Avoid answers that include names, dates of birth, hometown, etc. Don’t use anything that can be guessed from your social media pages.
- Not to include the answer to your security question in the wire transfer message.
One of the top international money transfer services, Wise, is regulated by the FCA in the UK, FinCEN in the US and many other regulatory bodies around the world. That means they act following the rules they have put in place to protect consumers in each region.
As well as Best Finance, Wise secures profiles with 2-step verification. Every time you log in and make a transfer, they will ask you to prove your identity using a text message, fingerprint, or face recognition. Thus, no one else can access your account or make payments on your behalf.
In the US, all Internet banking transactions, including online funds transfers/remittances, are processed by an automated clearinghouse, an independent agency offering secure financial data transfers.
Generally speaking, online money transfer services such as PayPal are quite a reliable platform that cares about its own security and constantly improves it. For example, the company has an official white hat bug bounty program, under which it has already paid almost $4 million in total since 2018. This program includes several other services owned by the company, such as Venmo.
But technology is technology, and no one has canceled the human factor. And if PayPal, for its part, really does a lot to ensure the safety of users, then users themselves sometimes make mistakes, which as a result cost them quite real money. Be better than most, follow these simple rules:
- You should ensure that the password for logging into your PayPal account is strong. “Reliable” means long, unique, and difficult to match.
- When it comes to finances, it’s useful to take extra precautions: be sure to turn on two-factor authentication.
- Be sure to set up notifications. In terms of security, mobile push notifications about outgoing payments will be most beneficial. If someone still crawls into your account and starts sending money right and left, you will immediately know about it.
Payment systems have become a profitable alternative to banks, as they offer more loyal and flexible conditions for opening accounts for different types of businesses.
Today, you may find hundreds of money transfer services available to users. They all position themselves as an effective and safe means of online transactions. However, not all services can be trusted. The main selection criteria are the service’s lifetime on the market, its reputation, tariff policy, support service, available options for funds withdrawal, and account replenishment.