Sending cash to family and friends is so widespread these days that “Venmo” has entered the lexicon as an precise verb.
And whereas peer-to-peer fee apps like Venmo and Money App are actually probably the most handy methods to pay your buddy again for live performance tickets or cut up a invoice at dinner, some individuals have to ship a lot bigger sums of cash, usually internationally, to assist households again dwelling.
Happily, the common individual now has entry to a mess of secure and inexpensive methods to ship and obtain cash — however some are actually safer and cheaper than others.
The best way to Switch Cash
Stuffing an envelope full of money, slapping a stamp on the nook and dropping it in a blue United States Postal Service (USPS) field is actually handy, nevertheless it’s in all probability the least secure solution to ship cash these days. To securely ship cash to a buddy or member of the family, think about one in every of these choices:
- Cash switch apps
- Wire transfers
- Paper checks
- Cash orders
- Linked financial institution accounts
What Are Cash Switch Apps?
Cash switch apps are a type of peer-to-peer fee utilizing smartphones (or not less than a pc related to the web). Popularized by PayPal, which is usually used as a fee platform for small enterprise house owners and freelancers, cash switch apps at the moment are a dime a dozen.
Whereas it’s good to have a selection, it may be irritating when somebody owes you cash and you employ separate apps. One in every of you’ll have to give in and obtain the app the opposite is utilizing. “Do you will have a Money App?” is the brand new “Is Pepsi OK?”
Undecided which on-line service to make use of? We rounded up the most effective cash switch apps of 2022, together with:
- PayPal
- Venmo
- Zelle
- Money App
- Fb Pay
- Apple Pay
- Google Pay
We’ll dive into a few of these apps extra under.
What Are Wire Transfers?
Wire transfers actually predate cash switch apps and are a comparatively safe (however pricey) solution to ship giant sums of cash, domestically or internationally. You’ll work with a financial institution, credit score union or establishment like Western Union to electronically (by “wire”) ship cash to a different financial institution.
So why wire transfers? Digital switch apps usually have caps on how a lot you possibly can ship at one time, however when you’ve got a bigger sum to ship — whether or not as a down fee on a brand new home or cash to assist your loved ones again in your house nation — wire transfers can get the job executed.
However simply how a lot do wire transfers price? We’ve damaged down the standard wire switch charges so you possibly can plan to your subsequent switch.
What Are Paper Checks?
On this world of debit playing cards, on-line banking, e-commerce and the cellular pockets, checks can actually really feel antiquated. However they nonetheless serve a goal (do you know you need to use them to search out your account and routing quantity?), and it’s essential to know learn how to write a verify, even in 2022.
Checks are tied on to your checking account. You possibly can write a verify for the quantity owed to a different individual and hand-deliver it to them or mail it. The recipient then must bodily deposit the verify at a financial institution or ATM (or simply money it). With cellular banking, the recipient would possibly have the ability to deposit the verify from the consolation of their very own dwelling.
Writing a verify is a raffle generally. If the recipient waits a number of months to money it, it’s attainable you could possibly neglect about it and abruptly not have sufficient in your checking account once they lastly take motion.
Which means the verify may bounce (just like a debit card being declined), or, when you’ve got overdraft safety, you could simply pay an overdraft price.
As a recipient, you ought to be cautious of accepting a verify as fee, particularly if you’ll by no means see the payer once more. When receiving fee for a service or sale, it is best to be certain that it clears earlier than ending the transaction with the opposite individual.
What Are Cash Orders?
With the appearance of peer-to-peer fee apps, cash orders are not a family title. Nonetheless, they nonetheless exist, and so they’re a terrific, inexpensive different to a paper verify.
For a nominal price (USPS costs $1.45 for cash orders as much as $500), you possibly can pay for a cash order, which is basically a verify that may’t bounce since you fund it once you buy it.
Word: You possibly can’t use a bank card or verify to buy a cash order. Have money or debit readily available.
For the individual sending the cash, this takes the guesswork out of the method. You don’t should surprise when the recipient will in the end money your verify; you’ve already spent the cash, and also you’ve washed your arms of the transaction.
For the individual receiving the cash, this instills a degree of confidence. The verify can’t bounce, so there’s no danger of being swindled by the payer.
The USPS caps cash orders at $1,000, and if you are going to buy greater than three separate cash orders at $1,000 every in a single day, you’ll should fill out a kind (and supply a government-issued photograph ID).
If you should ship a bigger sum of cash, attempt a cashier’s verify. These can be utilized to ship higher quantities of cash without delay, however you’ll pay extra for the service.
What Are Linked Financial institution Accounts?
When you have a checking account and financial savings account with the identical monetary establishment, these are linked.
For instance, you possibly can transfer cash out of your financial savings account over to your checking account to arrange for an upcoming automated fee, or you possibly can take a part of your direct deposit paycheck into your checking account and fund your financial savings with it.
Typically, you may need a checking account with one financial institution (maybe for his or her beneficiant ATM reimbursement coverage) however a financial savings account at one other (perhaps due to a better APY). You possibly can set every up as a linked checking account to the opposite.
As an alternative choice to sharing one checking account (referred to as a joint account), some spouses and home companions select to hyperlink their very own financial institution accounts. This makes it simple to ship cash forwards and backwards for shared bills, however there may be inherent danger to this. Solely hyperlink financial institution accounts with somebody you completely belief.
Word: In case your banks embrace Zelle (extra on this under), there’s no cause to hyperlink your accounts to ship and obtain cash. Zelle can do all of that by your financial institution apps for you — with out sharing confidential account numbers and whole entry to accounts.
9 Greatest Methods to Ship Cash
So what’s one of the simplest ways to ship cash? It relies on your wants: How briskly do you should ship and obtain cash? Is it home or worldwide? How a lot cash are you sending?
To get you began, we’ve damaged down the fundamentals like charges, switch limits and switch time of 9 distinctive methods of sending cash.
Zelle: Greatest for Quick Cash Transfers
With Zelle, you possibly can ship cash immediately (or simply about). Most cellular banking apps embrace Zelle, which implies you don’t should obtain and hyperlink your checking account quantity to a third-party app.
If you should ship a bigger sum of cash, attempt a cashier’s verify. These can be utilized to ship higher quantities of cash without delay, however you’ll pay extra for the service.
Inside your banking app, you possibly can simply discover family and friends with an e-mail handle or cell phone quantity to request and ship cash. So long as the opposite individual has Zelle by their financial institution, home transfers ought to be quick and safe — with none charges.
A chief promoting level for Zelle: Cash goes instantly into your or your recipient’s checking account. No have to shuffle funds from an app over to your financial institution after you obtain cash from a buddy.
Should you can’t discover Zelle inside your financial institution’s cellular app, you possibly can obtain the Zelle app instantly for iOS and Android, however your recipient should financial institution with a monetary establishment that companions with Zelle.
Charges: $0.
Switch limits: Range by financial institution or credit score union; if utilizing Zelle by its personal app, you’re capped at $500 per week.
Switch time: Zelle is among the quickest methods to ship cash on-line. You possibly can obtain your funds in only a few minutes, if not immediately, at no cost to you.
Venmo: Greatest for Straightforward Transfers
Venmo is arguably among the finest apps for sending cash solely because of its reputation. In 2021, Venmo noticed $230 billion in fee quantity, which was up practically 50% over 2020.
The social media side of Venmo is well-liked with youthful spenders, as is the convenience of establishing the account. You possibly can hyperlink Venmo to your financial institution or credit score union for direct withdrawals and deposits into your account, or you possibly can arrange Venmo with a linked debit card.
So long as you join Venmo to a checking account or debit card, home transfers are free. Should you’re prepared to pay a price, connecting a bank card is simply as simple. Worldwide transfers aren’t attainable.
Charges: $0 for checking account and debit card transfers; 3% for utilizing a bank card to ship cash; 1.5% price (minimal $0.25 and most $15) for immediate transfers.
Switch limits: Upon sign-up, person-to-person spending is restricted to $299.99, however as soon as the account is verified, you possibly can ship as much as $4,999.999 on a weekly rolling foundation.
Switch time: 1-3 enterprise days, except you pay charges for immediate transfers.
Money App: Greatest for Cryptocurrency
Venmo doesn’t essentially nook the market on transferring cash. The truth is, in late 2021, Cash App introduced that it had greater than 75 million lively clients, which means the app is gaining on Venmo, which stands at 75 million lively customers.
And Money App is interesting. Should you’re into cryptocurrency, this app serves as a platform for getting and promoting (for a price). There are additionally in-app “money boosts,” that are promotions and reductions for various items and providers, like Chipotle and DoorDash.
There’s even a $5 referral bonus once you get a brand new buddy to enroll utilizing your invite code.
Not like Venmo, debit card transfers carry a price, however they’re instantaneous. In any other case, you possibly can join your checking account or request a Money Card you could spend like a debit card (with instantaneous entry to funds in your account).
Charges: $0 for checking account transfers; 3% for utilizing a bank card to ship cash; 0.5% to 1.75% (minimal of $0.25) for immediate debit card switch.
Switch limits: Beginning out, you possibly can ship as much as $250 in every week and obtain as much as $1,000 a month. You possibly can enhance these limits by offering information like your birthday and the final 4 digits of your Social Safety Quantity.
Switch time: 1-3 enterprise days, except you pay charges for immediate transfers.
Cash Orders: Greatest for Paper Fee
Not a fan of linking your checking account to an app? Your choices for sending cash are restricted, however you possibly can nonetheless do it the old style approach. Somewhat than ship a paper verify within the mail, go to the USPS and get a cash order (or cashier’s verify for a bigger quantity).
Charges: $1.45 for transfers as much as $500; $1.95 for transfers as much as $1,000.
Switch limits: $1,000 per cash order.
Switch time: You’ll mail your cash order, so it relies on the transport choice you select.
PayPal: Greatest for Small Companies and Contractors
PayPal has been within the sport a very long time and can be utilized for peer-to-peer funds and enterprise transactions alike. PayPal gives stability and safety simply by advantage of getting been established for thus lengthy.
Not like a few of the apps already mentioned, a PayPal account allows worldwide transfers (charges apply). You may as well get a enterprise account with PayPal, however the price construction (already sophisticated for particular person customers) is extra nuanced.
You’ll hyperlink your checking account to PayPal, can ship and request funds by the platform and have to know the cellular quantity or e-mail of anybody you propose to transact with. Charges apply for connecting playing cards.
Charges: $0 for home transfers; 1% for immediate transfers; 2.9% + fastened price for playing cards; 5% for worldwide transfers (minimal $0.99 and most $4.99). As a result of the PayPal service is extra complicated, we advocate reviewing their devoted fee resources.
Switch limits: As much as $60,000, however this may range.
Switch time: 1-3 enterprise days, except you pay charges for immediate transfers.
Financial institution Wire Switch: Greatest for Giant Home Transfers
Wire transfers are the most costly solution to ship cash, but when you should get a big sum of cash to somebody securely, it is perhaps your best choice.
If the switch is home, banks and credit score unions usually supply the bottom wire switch charges. Relying in your financial institution, you would possibly pay a small price (or nothing in any respect), and your recipient is much less more likely to should pay a price to obtain the cash.
That’s why we advocate utilizing a financial institution or credit score union, quite than a service like Western Union, for home wire transfers.
Charges: Range by financial institution.
Switch limits: Range by financial institution ($100,000 a day is widespread).
Switch time: 1-3 enterprise days domestically, with many executed in 24 hours.
Western Union: Greatest for Worldwide Cash Transfers
As a result of Western Union is the biggest cash switch firm on the planet, it has probably the most intensive community of areas for sending and receiving cash. This makes it supreme for worldwide wire transfers.
Simply be ready for charges to match the comfort.
Charges: Range by location, forex, in-person vs. on-line banking, and so on. Charges are typically costly.
Switch limits: Varies by receiver’s nation.
Switch time: Usually 24 hours domestically and 1-5 enterprise days internationally.
Digital Wallets: Google Pay or Apple Pay
In case you are snug with digital wallets, paying with Google Pay (Android customers) or Apple Pay (Apple customers) may be fairly handy.
These not solely permit you to ship and obtain funds from family and friends, however you too can use them to make in-store purchases at collaborating distributors. You’ll simply want a linked debit card or linked checking account.
There typically aren’t charges for Google Pay and Apple Pay except you want instantaneous transfers.
Worldwide Switch: WorldRemit and Remitly
WorldRemit is rising in reputation for fast worldwide money transfers. Its community is nowhere close to as intensive as Western Union, however the switch is quick and the charges are low.
Remitly is nice for dwelling supply. You possibly can ship cash from the U.S. to one in every of many growing nations. Somewhat than requiring your recipient to go to a retailer or financial institution for a money pickup, you possibly can have the funds delivered to their dwelling, for a price.
Listed below are another fee strategies to switch cash on-line:
- Clever
- Walmart2Walmart
- Fb Pay
- Xoom
- OFX
Steadily Requested Questions (FAQs) About The best way to Ship Cash
You might have a lot of questions on the most effective methods to ship cash to family and friends. We’ve bought the solutions to the most well-liked questions.
How Can I Ship Cash to a Pal?
These days, there are many methods to ship cash to mates, however one of many best methods of sending cash is through digital banking apps like Venmo, Money App or Zelle. You possibly can obtain these from the Apple App Retailer or Google Play Retailer.
Android customers may also think about Google Pay whereas Apple customers have Apple Pay at their fingertips.
What Is the Quickest Strategy to Ship Cash?
Zelle gives instantaneous financial institution transfers totally free. For a price, you possibly can usually do instantaneous transfers through different cash switch service choices like PayPal and Venmo.
What Is the Most secure Strategy to Ship Somebody Cash?
Digital peer-to-peer fee apps are typically secure, as are wire transfers once you personally know the recipient. (By no means wire cash to a stranger.)
Cash orders and cashier’s checks are a safer different to paper checks or sending money within the mail.
Contributor Timothy Moore is a author and editor in Cincinnati, Ohio. He focuses on banks, loans and insurance coverage for The PNW. His work has been featured on Debt.com, The Ladders, Glassdoor, WDW Journal, Angi and The Information Wheel.