Difference between Bank Remittance and Bank Transfer Explained

A minor difference, such as between a bank transfer and a bank remittance transfer, can create considerable confusion. Especially, overseas workers and expatriates come across heaps of information when they need to send money online to their family and friends in their native country. It becomes hard for them to easily differentiate between and understand such terms to decide on the best money transfer methods. Here, you will learn these differences conveniently along with the background of the entire system if you are still confused about it.

The background of bank transfers is interesting to know.

International money transfers have remained a strict domain of the global banking system for quite a time. But, their monopoly was engulfed by the advent of some highly credible international money transfer companies such as ACE Money Transfer. It does not mean that the expatriates have stopped going to banks, searching for the cheapest way to transfer money internationally. But, it instead implies that the expatriates have started looking for other ways that suit them to move funds cross-borders. For instance, Pakistani expatriates will always look for the best way to send money to Pakistan online, where they can enjoy the lowest fees, best exchange rates, and safe money transfers.

Now, let’s glance over the background of the banking system and banks transfers.

The history of banking is intriguing.

The early banking history can be traced back to 2000 BC in ancient Greece and the Roman Empire. Initially, the system operated on trust between the parties exchanging currency and valuables. But, this system conformed to the needs of the people, which attracted more and more people to it. It eventually started evolving the system, and it underwent numerous changes. The most important of those changes was to meet the monetary needs of the people using this system, the importance of record-keeping of financial matters and the structural changes necessary to accommodate a large number of people.

And if you analyse banking in its latest form, the essential functions remain the same as explained above.

The background of bank transfers will amaze you.

Expatriates always had the intense need to send money back to their families. Initially, moving their funds from one place to another was a challenge. But with the advent of banking, expatriates found it convenient to send money through an institution they could now rely upon. Banks, in turn, devised mechanisms to facilitate the transfers, and bank networking emerged.

Now, banks facilitated people to send money as they operated in a network instead of in isolation. And this is how the concept of bank transfer emerged.

What is the background of bank remittance?

The expatriates used the banks to move funds primarily from one place to another within the same country. As bank networking evolved, many banks crossed into other territories. This network connectivity beyond borders was a base for transferring remittances internationally through banks.

With a quick look at the backgrounds of the bank, bank transfers and international remittance transfers through banks, it is now essential to understand the difference between the two.

How does a bank transfer work? 

A bank transfer is when you move money between two accounts of the same bank. It can be local as well as international. It is also known as a wire transfer.

How does a bank remittance transfer work?

A bank remittance transfer is the transfer of funds from one bank account to another account of another bank.

Both of these transfers are somewhat similar except for the requirement of having an account in another bank in case of a remittance transfer through banks.

Technology has blurred the difference.

You need to keep in mind that the global networking of banks and rapid technological advances has bridged the gap between these two. Now, even wire transfers can be sent to another account of a different bank.

A few differences between the two are explained below. 

A bank transfer is cheap.

The typical wire transfer between two accounts of the same bank is cheaper as the bank will charge you a low fee for a money transfer to Pakistan or elsewhere.

 

A bank remittance transfer is expensive.

Sending money from one account to another of a different bank incurs costs. Therefore, the service charges for a remittance transfer are higher.

Simple bank transfers are quick.

The time a wire transfer can take ranges between three to five working days. But, its extension also depends on what time of the day you initiate a transaction and which day of the week.

Remittance transfer through the bank is slow. 

It can take several days for a remittance to transfer through banks as it involves two different banks operating in different countries.

Key benefits of bank remittance system

The banking industry is trusted worldwide. 

Many people worldwide still trust the banking services as they feel the banks are visible and available against some companies offering virtual services.

Money is securer in banks.

People believe that their amount will remain secure in their accounts. And if it is moved, it will reach the recipient safely.

The best method to send money online

The best method to send money online depends on your exact needs. If, for example, you are looking for trust-based transfers, you will choose banks. But, if you are looking for trust, speed, low fees etc., you will look for the best online money transfer companies such as ACE Money Transfer, as banks charge you a high fee and take huge time to transfer your remittances.

Deciding what option to choose for online money transfer to Pakistan or another country, you must consider the abovementioned factors. A thorough consideration of these factors will help you steer in the desired direction.