There are so many ways to send money in the age that we live in, thanks to technology. However, what is the best way to send and receive money: traditional bank transfers or digital transfers? Here is a quick look at the pros and cons of both.
Digital Transfers
There are many banks that offer online bank transfers, but for the sake of this article, we will focus on alternative digital payment methods, like taxcorporation.co.uk or PayPal.
Pros
Firstly, mobile money transfers are easy to use for almost anything. Mobile payment methods can easily pay for bills, taxes, international transfers, school fees, and more. Digital money transfers work a lot like traditional bank transfers, but they are a lot more convenient. You do not have to wait for long lines in the bank to make a few simple transfers; using your phone, you can get them done in minutes.
Next, mobile money transfers are usually more affordable. Mobile money transfers usually have lower exchange rates, interest rates, and fees, making it cheaper for most people. It is especially beneficial if you make a lot of regular transfers.
Given that you choose a reliable payment service, digital money transfers are as safe as bank transfers. Most payment services are protected by the same departments and follow the same regulations as financial institutions.
Cons
If you do not have a smartphone, then it is unlikely that you can use most digital money transfers. While most applications will not require the latest phone, some digital money transfers will require relatively new devices.
While digital transfers are usually safe, that does not keep you completely protected. There are still scammers out there who will sell you fake products/services, and the digital money service may not protect you from sending money to them. Additionally, scammers may send you fake texts and emails that tell you to send them their personal information, click suspicious links, etc. to get your details.
Bank Transfers
Pros
Depending on where you are transferring money and how much, there are low or no fees. For instance, sending money to another person who has an account in the same bank as you, it is likely that there will be no fee or a very low fee.
Some people still have a preference for traditional bank transfers. Some people are old-fashioned, while others know that it is a “trusted” establishment. Therefore, some businesses and people may only accept and send funds through banks.
Cons
Unfortunately, banks can rack up fees pretty quickly, especially for large sums of cash, international transfers, exchange rates, and more. Additionally, there is a wide range of fees and other banks may be better for certain things, so you may need to open multiple costly bank accounts.
Another major downfall of banks is their customer service. If you gave wrong information, want to change something, found an issue with your funds, etc. you could be on the phone for days and wait for weeks for the issue to be solved.
There are advantages and disadvantages to traditional bank transfers and digital transfers. However, digital transfers tend to have more benefits than traditional bank transfers because of convenience, fees, and accessibility.