Did you ever think about how to send money to Bangladesh? This article will throw light on some of the advantages and disadvantages of using online money transfer companies to transfer funds electronically. This method is also known as Electronic Funds Transfer or EFT.
An EFT is defined by the US Electronic Fund Transfer Act 1978 as a transfer initiated by telephone, computer, electronic terminal or a magnetic tape for ordering, instructing or authorizing a financial institution to debit or credit an account.
Let’s now take a look at the advantages of using online money transfer companies.
Right to dispute:- If you feel there is some doubt in a money transfer to Bangladesh or your home country you made, you are legally authorized to ask your bank or the said company to investigate anything you feel is suspicious. Remember that there is a deadline that varies from company to company within which you can move the concerned financial institution to investigate something unauthorized in a transaction.
Access funds faster:- An EFT helps both the sender and beneficiary have faster access to funds. Normally, a wire transfer takes about two to three working days to complete and reach the beneficiary. But, an EFT takes between minutes to hours to complete.
Pay without cards:- There are many businesses that do not accept payments through a traditional cheque and rather accept an electronic cheque conversion as a form of payment. This enables customers to pay for items that they could miss out if they were to pay for those through their debit or credit cards.
Automated payment:- If you have subscribed to a service requiring you to pay monthly bills for uninterrupted usage of the concerned service, and EFT enables you to pay bills automatically if you forget to make timely payments. In this case, your service provider will initiate a transaction and you do not have to do anything but this option will keep your accounts updated. Besides, it does not give exclusive access to the service provider to your account. Rather they can only get what is due; nothing more nothing less. Besides, you can stop automatic payment anytime you see fit.
Do not hold funds:- It means that you do not have to wait for the funds to become available such as through banks and wire transfers. In an EFT funds are available as soon as the transaction completes.
Safety:- Funds transferred through online companies are considered safe and secure. Banks are also secure but companies such as ACE are faster and cheaper.
Availability:- There is a wide footprint of companies helping you send or receive funds internationally. You do not have to travel far to send or collect funds and rather can find many companies nearby.
Now, let’s take a look at the disadvantages of sending money online through companies.
Immediate availability of funds:- You must ensure that you have the funds to send quickly because EFTs take place within just a few clicks and there is no margin to wait for the funds to become available.
Record keeping:- Suppose you present a cheque in a bank or another financial institution and it gets cancelled due to any reason and you want to keep it with you for the record, you will not get it. The cancelled cheque will not be returned. This can distort your financial record keeping.
Purchasing opportunities:- EFTs create 24*7 purchasing opportunities, but there are still some businesses that are reluctant to accept payment through an EFT. Therefore, its universal acceptance may never become possible or will take a lot of time, if it ever happened.
Payment can bounce:- An online money transfer to Bangladesh or more generically EFT can bounce and come back as returned similar to a bounced cheque. The customer should take immediate action to ensure payment is made. Companies or financial institutions do not automatically reprocess the retuned or bounced transaction unless requested by the customer.
Anonymous transfer:- There are some companies which allow anonymous transactions which mean you can initiate a transaction and complete it without providing your personal details. But, it is rare and most of the countries have strict laws in place disallowing anonymous transactions.
Irrecoverable loss:- Online transactions can be hacked or lost along the way and this loss is completely irrecoverable because these transactions take place at quick speeds. Therefore, never use an EFT for someone you do not personally know.
Verification:- You cannot fully verify if the intended beneficiary has collected the funds you have sent in. A thief can collect your funds with a fake ID. Therefore, be cautious with verification.
Report to government:- Different countries have certain rules regulating EFTs in which you are required to report a transaction to the respective government. It depends on the volume of amount. For example, an EFT transaction dealing in more than 10,000 USD cash will be reported to the Internal Revenue Service in the USA.
Lost transfer:- A wire transfer can ever get lost in a bank because numbers can get transposed while writing down a cheque or important information.
High fee:- An EFT can involve huge amounts of fee or service charges which makes it important for the customers to draw comparisons to check fees or charges different companies offer.
Conclusion:- We have studied the advantages and disadvantages of sending money online with companies and even banks. The best option in all of this to stay away from disadvantages is to find companies such as ACE Money Transfer to send money to Bangladesh online which have marginalized these disadvantages and rather turned those into positive points.