International Money Transfers have become a necessity for almost every other person. People are using banks and money transfer companies such as ACE Money Transfers to send money to Africa, on a regular basis. A lot of migrants have to send money to the Gambia for their families and loved ones. But, many people still don’t know how money transfer really takes place between banks and companies, working around the globe.
Send Money Online – But First Understand the Methods
Here is a short explanation that will help you in understanding the methods used by banks to send money online.
Transfer Between Same Banks
Most of the banks have branches in almost every city of a state. If you transfer the money from a bank to another branch of the same bank that is located in another city, then your service charges cost zero mostly. In this scenario, the cash doesn’t even move an inch physically. Each bank has specific cash amounts at each branch. When you transfer money it’s simply deducted from your account and added to the account of the recipient. When the receiver goes to a payout location, he is paid from the cash that is already present in the store of that branch. This system is totally automated and works by calculations and advanced systems which help the people to do an easy money transfer to Gambia.
Transfer between Different Banks
Every bank usually has dealings and contracts with other banks which helps them in transferring the payments smoothly. In this case, a central bank or account acts as a mediator between two different banks. Both banks have their accounts in a central bank. We can explain this process in two simple steps. When a person sends money to Gambia online from bank A to bank B,
- The amount is deducted from its account in bank A and added to the account X (in the central bank).
- The payment is deducted from account X and added to the receiver’s account in bank B.
It is a must for every bank to stay affiliated with other national and international banks. In this case, you may have to pay some service charges. The charges may vary from bank to bank and state to state. The central bank is a state’s national bank mostly.
Transfer between banks of different countries:
- Many international banks such as Central Bank are operating in major countries of the world. If you send money by using a bank account to another branch of the same bank, then it may take 1-3 business days and currency exchange rates will be applied to your transfer.
- If you send money between different banks internationally, then the process is the same as explained above. The only difference is that in this case, the mediating bank must be international and have branches in both sending and receiving countries.