Should I use an online transfer or a bank transfer?

There are tons of ways to transfer money, but people are often not sure what is better: online transfers or bank transfers? Both of these transfer methods have their pros and cons, and here is a quick list of the benefits and disadvantages of both to help you make the best decision for yourself!

Why You Should Use an Online Transfer

Firstly, online transfer payment methods have tons of options. There are many payment platforms and alternatives that you can compare to see which one suits you the best. For instance, PayPal is a popular payment platform that is great for people who want to shop online. Venmo is ideal for small and quick money transfers for people who want to send small sums to their friends. First Payment Provider is an all-around website that is great, especially for mass wire transfers and automated payments.

Online transfers tend to be more convenient than bank transfers. Most online transfers can be done through your phone and computer as long as you have a secure internet connection. Therefore, you can send and receive money anywhere you want. That way, you do not have to rush out to the bank to send and receive money. 

Plus, online transfers are usually cheaper than bank transfers. Online transfers require fewer resources to complete a transfer process. Therefore, they would cost less money, which is why online payment platforms usually have lower fees than banks. Many online payment platforms offer free transfers, depending on where you are sending money, how much you are sending, how quick you want the process to be, etc.

However, online transfers are not perfect. It is possible for a hacker to hack into your account, especially if you use public internet connections or shared devices. That is because hackers are experts at trying to sneak into your phone and computer. Luckily, you can combat that by keeping your information private, using a secure and private internet connection (like your home WiFi), and only using your own device to log into your payment platforms.

A man holding a bag on dollars.

Why You Should Use a Bank Transfer

Bank transfers are more trusted than some payment platforms because they have been around longer. Therefore, most people may prefer to make transactions with you via bank transfer over online transfer. Plus, many bank transfers are available online since many banks have their own apps and websites that you can use. Therefore, you may be able to make an online transfer using your bank’s app or website.

In some cases, a bank transfer may be cheaper than an online transfer. For instance, let us say that the person you want to send money to has an account in the same bank as you. If your bank offers free transfers to different clients in the same bank, you can save more money by using their transfer services instead of an online one. Some banks also offer free checking and benefits, so it might be beneficial for you to use a bank transfer. 

Overall, online transfers have more benefits than bank transfers, but bank transfers can still be useful.