How to send money online?

Advice on how to ship money online? TransferWise’s mission is to make instant international money transfer, or at the very least make the transfer speed predictable to the extreme. However, what really determines the pace of a global cash shift?

It’s actually quite simple – here’s how it works:

The time each of these items fully contribute is determined by the currencies involved and how the native cost methods work. However, there are other components in play here as well.

1. Time for your money to reach TransferWise

Our prospects can fund transfers in 4 main ways: by using a card or payment methodology like Apple Pay, by sending us a wire transfer, by allowing us to debit their bank account immediately, or by paying from their Balance without borders. Each of these choices has totally different speeds, so by deciding on a specific cost methodology, our clients affect the length of their change.

For example, when a buyer pays by debit card, TransferWise is immediately notified of the cost-effective cost and begins processing the change within seconds.

Alternatively, if a buyer pays through a bank change, TransferWise needs to take care of how much to reflect in our bank account before completing the change – and that takes time.

incoming payment speed

2. Switch travel time

The TransferWise engine is quite fast. There are some things we need to do before paying for the transfer:

  • We are a money market company, so we are required by law to perform a few checks before making a change. We need to ask questions such as: is this the buyer they claim to be, or are there any dangers of money laundering or fraud? These are checks that preserve the cash flow of our prospects. Until more manual checks are needed, these checks only take a few seconds.
  • We allocate (or reserve) the necessary money in the beneficiary forex to pay for the transfer. Here, our treasury methods ensure that the necessary funds can be found in the correct account at the time of scheduled payment. This is where much of the magic of TransferWise happens.
  • We do make the payment. Again, it only takes a few seconds.

3. Shipping time to recipient

After TransferWise pays, it takes some time for the money to show up in recipients’ accounts. In some countries the costing methods are very fast (within seconds), while in others mirroring can take days. It comes down to building each nation’s cost system (there’s a nice clarification of this. here)

When the cost system is simply not in place, the determining factors for when transfers are to be paid are often compensation cycles or “cuts”. These are time limits on each day (usually only on working days) when all the banks linked to the cost system exchange information about the funds they have generated and obtained in the interval leading up to the deadline. Then, they settle the amounts they owe each other online and change the balances of individual bank accounts.

This is the reason why, for example, in the UK, funds are distributed quickly (at the time FPS cost system), while elsewhere in Europe and the world the supply of costs is slower.

transfers delivery speed

As a buyer, what can you do to maximize your pace?

Using some of the examples above, we will see that the majority of payments from a Stability Without Borders or Debit Card would almost immediately reach recipients in UK banks. Alternatively, transfers to Canada funded by a change of bank are more likely to take longer than 24 hours.

With that in mind, there are a few things you can do to maximize the pace of your change.

First of all, choose a faster payment methodology. The fastest and cheapest approach to funding a change is usually through Borderless Stability, so if pace is a priority, consider pre-loading your Borderless account. Second, proactively check yourself! This way, if it is worth making a change in a rush, it will not be delayed by any checks. Third, align your funds with the limits (or at least the working hours) of the forex cost system you are sending money to.

We will always take these and other elements into account when giving our customers an estimated time of arrival, which is proven when setting the switch. And over time, we’re sure that each of these will not only become earlier, but also more reliable and predictable.

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