How money is paid and transferred online

How money is paid and transferred online

Business today can be done across countries and across continents. The difficult part and most contentious part however is when it comes to payment. The internet provides a very good platform for communications but it does not necessarily provide a ready solution for safe payments. Payments are usually handled by third parties and these third party companies are usually different in terms of how they work.

Many times people who are transacting internationally will use banks. Banks are safe, fast and dependable. However, they are not always the best option. Some banks may take longer than necessary, say two or three days, to complete a transfer of funds, while other banks will charge excessive amounts for the services offered. This is especially due to the change of currency that might be involved if the funds are going to a different country.

Many times people may find out that they do not have the same bank located at both ends of the transaction and the funds have to be transferred over two different banks. This can be quite expensive or impossible.

There are other methods of transferring funds that are more flexible than the banks. There are companies that deal purely with online transfer of money and these include companies such as Paypal, Netteler, Payza, Squarecash and google wallet. You could also send cash through Western Union.

These are all ways that you can use to transfer money to ensure that your online business continues to thrive. There are other means that people may use to transfer money but they are not credible and you could end up losing money.

All the above methods of sending money have different terms and different costs attached to them. It is important to first study through all of them to find out the paying methodology that would be most convenient and cost effective for you.

Money does not always change hands over the internet because of purchase of goods. Many times it is also due to the payment of services offered. There are many jobs that are being done over the internet today and their subsequent payments are also sent over the internet. For example, there are many people who work remotely from all over the world and their clients are thousands of miles away from where they are.

Once they complete their jobs, or once they reach an agreed upon milestone, the client needs to pay the freelancer. Sending cash would not be ideal and using some of the above methods of money transfer would simply not be economical. However, systems such as PayPal and Skrill have been specially designed for freelancers and the costs incurred therein are minimal. People who work from home or who provide their services online trust these sites as being safe, and relatively fast.

However, these money transfer services do not work alone and eventually you will still have to use your local bank where you can get the hard cash from. You could also use another substitute outlet such as Mastercard or Visa outlet. These services will often charge for each transaction.

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