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The Best Ways to Send Money Online

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Sending money online is no longer exotic. It’s actually a simple and hassle-free way to send dollars to that friend who bought you lunch yesterday, pay a freelance artist for designing your small business logo or purchase that robot-themed necklace on Etsy. And today, consumers have more options when they want to send money online, from well-known services, such as a PayPal and Google Pay Send, to newer options, such as Venmo and Zelle.

These services let you send money to friends, family members, businesses, contractors and freelancers — basically anyone who’s waiting for a payment from you. By sending money online, you eliminate the need to provide recipients with your credit card information, you don’t have to worry about writing checks and you won’t have to scramble to find an ATM to withdraw cash.

The big question: Which service should you use to send money online?

Not surprisingly, the answer varies depending on whom you are paying and what you are buying. Here’s a quick look at some of the more popular ways to send money online and the pros of each service.

Best to send money online to friends and family

Venmo

Send money online via Venmo
Image source: iTunes

You can use Venmo on your mobile device to pay for items on your own, or split up payments among your friends and family members. You can also use Venmo to deposit money in your bank account, make purchases through several apps and pay for items in physical stores.

To use the service, you’ll need to create an account with Venmo first, either through the Venmo’s app or on its website. You can then link your Venmo account with your bank account, and debit or credit cards. This way, you won’t have to add any money to your Venmo account to make purchases.

Features: Venmo’s biggest advantage is its flexibility. You can send money to people through Venmo by using the recipient’s email address or phone number. If these people already have Venmo accounts, the money will be transferred automatically. If a recipient does not have an account, they’ll first need to create a Venmo account to accept your payment.

Downside: It’s usually free to send money through Venmo. But if you use your credit card to send money to a recipient, you will pay a fee equal to 3% of the amount you send.

There are limits to how much money you can send through the service, too. Before Venmo verifies your identity, you can spend and send as much as $299.99 per week. Once Venmo verifies your identity, you can send a maximum of $2,999.99 each week in payments to recipients.

Zelle

Image source: iTunes

Zelle works much like Venmo, allowing you to send money to anyone whose email or phone number you know. However, you don’t have to download a separate app to use Zelle. Instead, many of the biggest banks across the country embed Zelle within their online banking platforms as a service to their consumers.

Some of the banks that already use Zelle include Associated Bank, Chase, Citi, Fifth Third Bank, Bank of America and SunTrust. If you bank with Chase, for example, then you simply send money through your Chase app. But if your bank does not offer Zelle, you still can use the service by downloading the Zelle app.

Features: If your bank or credit union offers Zelle, you can use the service to send money to anyone who has a bank account in the United States. If your bank does not offer Zelle, and you are using the Zelle app on your own, then the people you send money to must have Zelle through their bank or credit union.

Fees are a positive feature. Zelle does not charge consumers anything to send money. Zelle, though, does recommend that users check with their personal bank or credit union to make sure that these institutions don’t charge any fees.

Zelle is fast, too. If you send money to someone who already has access to Zelle, the money should show up in that person’s bank account in minutes. If you send money to someone who is not yet enrolled in Zelle, it will take from one to three business days for the money to show up.

Downside: You might be limited with Zelle according to your bank’s policies. As Zelle says, to determine how much money you can send each week through the service, you’ll need to check with your bank or credit union. If your financial institution doesn’t offer Zelle, you can send a maximum of just $500 a week with the service.

Zelle also doesn’t let you use a credit card to send money. You will need to connect the service with a bank account or debit card.

Google Pay Send

Image source: Google App Store

 

Like its competitors, Google Pay lets you send money to people by using their name, email address or phone number. You might remember this service as Google Pay. Last year, though, Google added the “Send” part of the name to signify that the service now combines the features of Google Wallet and Android Pay.

To send money online, you’ll need to link Google Pay Send to your bank account or debit card. Then, when you make a payment, the money is taken from these linked accounts. To get started with the service, you can sign in to pay.google.com on your computer or you can download the mobile app.

Features: Google Pay Send is completely free to use. The service is fast, too. Google says that linking Google Pay to a debit card results in the fastest transactions, usually within minutes. However, linking to a bank account can result in slower transactions. Google says it can take as long as five business days for the funds to be withdrawn from your account.

Downside: You are somewhat limited in how you can send money with Google Pay Send. You can use your debit card and bank account to send money through the service. You cannot, however, use credit cards or PayPal to send money through Google Pay Send.

There are limits, too, on how much you can send with Google Pay Send. You can send a maximum of only $10,000 in a single transaction, and as much as $10,000 altogether in a seven-day period. In addition, if you want to send someone more than $2,500 in a single transaction, then the recipient must add a bank account in order to receive the funds.

Cash App

Image source: iTunes

The Cash App is offered through Square. To use it, download the app onto your phone. To send money through the service, you’ll have to link it to either a debit card, credit card or the funds already available in your Cash App.

When you send the money, you’ll enter the recipient’s name or mobile phone number. The recipients receive an email or text telling them that they’ve received cash.

Features: It’s easy to send money through this app at no charge. You just can’t use a credit card. Sending money with your debit card or Cash App balance is always free. Sending money through a credit card, though, costs 3% of the amount of money you are sending.

Downside: There are limits to how much you can send through Cash App. If you send more than $250 in one week, Cash App will ask you to verify your name, date of birth and Social Security number. If you provide this information, you can then send as much as $2,500 in a week.

Best for business transactions or purchasing items online

PayPal

Image source: iTunes

PayPal might be the best known of all the platforms to send money online. And it’s easy to use via your computer or phone. You create a free account and then link it to your bank account, credit card or debit card. To send money online, you enter your recipient’s email address or mobile phone number.

PayPal then notifies recipients that they have received money. This money is directly deposited into their own PayPal accounts. If recipients don’t have an account, they are prompted to open one.

Features: You won’t have to pay to send money with PayPal as long the money is coming from your PayPal balance or bank account. However, you will be charged if your payment is funded by a credit card or debit card. PayPal has a particularly far reach, too. You can use PayPal to send money to recipients across the globe.

Downside: The biggest downside to using PayPal to send money online? It comes down to fees. If you fund your payment with a debit card or credit card, you’ll be charged a fee equal to 2.9% of the amount you are sending. You might also be charged a separate fixed fee depending on the currency of the transaction. If you are sending U.S. dollars, you’ll be charged an additional fee of $0.30.

The recipients of your funds also might need to pay fees. But, recipients won’t pay any fees when you send them money through PayPal’s friends or family option. However, if you send someone money for goods or services provided — which PayPal considers a commercial transaction — then that person must pay 3.4% plus $0.30 if you are making a domestic payment with PayPal’s standard rates. If you are sending an international payment, recipients from most countries must pay 3.9% plus $0.30 to receive the funds if you are sending in U.S. dollars.

Best for sending money abroad

TransferWise

TransferWise allows you to send international payments online, after you set up an account. To do this, you must first set up an actual payment through your account. When you do this, you enter how much you want to send and the recipient’s bank details. When it’s time to send your payment, you have the option of specifying how you want to pay.

Features: TransferWise allows you to pay in several ways. You can pay directly from your bank account, with a debit card or a credit card, or through an Automated Clearing House (ACH) service. Sending money internationally can get complicated when it comes to fees and exchange rates. But TransferWise will tell you the fees upfront when you set up your payment.

When it comes to exchange rates, TransferWise always charges the mid-market rate. It will also tell you the exchange rate it is charging when you set up your payment.

Downside: It’s not especially cheap to send money through TransferWise. TransferWise charges a fee of 0.6% of the amount you send plus $1.

Western Union

Western Union allows you to send money to more than 200 countries and territories. You can send this money online or by visiting a physical Western Union location. You can send money to recipients’ bank accounts directly online by using your credit card or debit card. You can also do this by transferring money from your bank account.

How long it takes for your money to arrive will vary according to your destination. Western Union says that you’ll be able to see these various arrival times as you enter your payment details.

Features: Western Union does make it easy to pay. You may download the Western Union app to start the payment process, or visit the company online to send payments. However, if you would like an agent to handle the transaction for you, then you can send money from more than 500,000 Western Union locations across the globe, and 43,000 in the U.S. alone.

Downside: You will have to pay to send money through Western Union. For instance, Western Union says it costs $5 to send a maximum of $500. You will, though, have to check what the fees might be for sending specific amounts to specific locations.

There are also limits on how much you can send through Western Union. When sending online, you can send a maximum of $2,999 per money transfer. If you are sending a transfer through Western Union’s mobile app, you can send as much as $500 per transfer.

MoneyGram

MoneyGram is another big player in the transfer business. This service also allows you to send money to overseas recipients either online or by visiting a MoneyGram location. With MoneyGram, you can send money directly to a recipient’s bank account or mobile wallet.

To send money online, you may pay with a credit card, debit card or directly from your bank account. You will need to tell MoneyGram to whom you are sending money and how this person wants to receive the funds.

Features: The biggest plus of MoneyGram is its flexibility. You can find in-person locations if you prefer to speak with a representative by visiting this page. MoneyGram offers you as many options to send money internationally as it does domestically.

Downside: You will have to pay fees to send funds through MoneyGram. How much depends on the amount you send and where you are sending it. For instance, if you want to send $1,000 to a recipient in Australia, it will cost you $32. If you want to send $500 directly to the bank account of someone in Great Britain, it will cost you $7.

You can estimate your fees before you send money here.

As with some of the other services, there are limits as to how much you can send online. MoneyGram says that you can send a maximum of $6,000 in most countries for every single online transfer. You can also send a maximum of $6,000 in most countries every 30 days.

How to send money online safely

Sending money online is convenient. But you do have to be careful. There are opportunities for scammers. The most common scams are when criminals try to trick you into sending them money online. Be sure to carefully read the fraud protection programs offered by these services. They do vary by provider.

MoneyGram provides a useful list of some of the most common scams criminals use to trick people into sending them money online. For example, scammers might call you, saying that they are from the Internal Revenue Service, and asking that you send them money to pay taxes that you owe. Others might say that they are from the Federal Trade Commission and they need you to send a payment so that they can refund you money from a legal settlement.

The bottom line? Don’t ever send money online to someone who calls you. And never send money online to someone you don’t know or trust adequately.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Dan Rafter
Dan Rafter |

Dan Rafter is a writer at MagnifyMoney. You can email Dan here

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How Regulation D Affects Your Savings Accounts

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

If you have a savings or money market account, you may have noticed that there’s a rule that goes with it — no more than six transfers or withdrawals per month from the account. It may feel oddly specific, but it’s true for all savings accounts at all banks and credit unions. Congratulations, you’ve experienced Regulation D.

What is Regulation D?

Regulation D refers to the Federal Reserve’s reserve requirements for depository institutions — or, more plainly, how much money a bank needs to hold in reserve as a percentage of the total amount of money it owes to its customers. So, for instance, currently banks must keep a minimum reserve of 3% of the total amount over $16.3 million and 10% of the total amount over $124.2 million.

Why is this important? “It’s designed to make sure that banks have an appropriate amount of money in reserve,” says Robert Föehl, J.D., executive-in-residence for business law and ethics at Ohio University’s College of Business. “It’s about making sure that banks are safe and sound.”

As part of these reserve requirements, banks must classify what types of deposit accounts they have and keep reserves accordingly. For accounts categorized as savings accounts, Regulation D limits bank customers to six transfers or withdrawals per month. This rule is in place, in part, because banks aren’t required to hold a reserve against savings accounts.

In general, transaction accounts, which include checking accounts, are considered riskier types of deposits. “You write a check; that check could bounce,” Föehl says. “There’s more risk to the financial institution to have transaction accounts than to have savings accounts.”

Savings accounts are considered safer for banks because — by definition — people aren’t using them for all of their financial business. If you’re writing all your checks on your savings account, it’s not really a savings account. “You can’t call something a savings account if it’s a transaction account,” Föehl says. “This is where the limit comes into play.”

Regulation D’s limits are also a way of encouraging people to save, says Mayra Rodríguez Valladares, a financial regulation consultant and trainer in New York City. “The downside is that if you wanted to withdraw more than six transactions a month you could incur some kind of penalty,” she says.

How does Regulation D work for customers?

If you go over your allowed six transfers or withdrawals, your bank may charge you a fee. If you do it regularly, they may convert your account to a checking account or even close your account entirely.

In general, any account that limits “convenient” transfers and withdrawals is considered a savings deposit account and would be covered by Regulation D. These include:

  • Savings accounts: Deposit accounts in which a customer earns interest on the money they deposit, which often have lower minimum deposits.
  • Money market accounts: Deposit accounts in which a customer earns interest on the money they deposit, and the interest is typically higher than a savings account.

These accounts also come with a “reservation of right” requirement, in which the bank reserves the right, at any time, to require seven days’ written notice of an intended withdrawal — but banks don’t typically do this in practice.

Transactions that are limited under Regulation D

Essentially, Regulation D caps transactions that are considered easy for you to initiate without having to drive to a bank or visit an ATM. That would include:

  • Preauthorized, automatic transactions — including those from a savings account for overdraft protection or for direct bill payments
  • Telephone transfers
  • Withdrawals initiated by fax, computer, email or the internet
  • Transfers made by check, debit card or another similar method made by the depositor and payable to third parties

How can I get around the limits of Regulation D?

You may bypass the six-withdrawal limit under certain conditions, including if you’re willing to travel to your local branch in person. “It’s getting to be less and less of a problem,” Valladares says. Transactions that don’t go against your limit include:

  • Transfers and withdrawals made in person at the bank
  • Withdrawals and transfers requested by mail
  • ATM withdrawals and transfers
  • Transfers and withdrawals initiated by telephone, where the withdrawal gets disbursed as a check and mailed to the depositor

How to avoid trouble with Regulation D

If you’re feeling hemmed in by the six-transaction limit of your savings accounts, there are a few ways to work around it:

  • Visit your bank branch or ATM. Transactions made at your local branch or from your bank’s ATM don’t go against your monthly limit — this is the simplest way to avoid trouble with Regulation D.
  • Plan ahead. If you know you’ll need a certain amount of money in a month, don’t drag it out over multiple transactions — get what you need in fewer trips. Withdraw more at a time.
  • Decline overdraft protection. Generally, overdraft protection works by dipping into your savings account if you write a check that your checking account can’t cover. That counts as one of your six transactions, but if you decline overdraft protection, it can’t happen.
  • Get a checking account. If you need more than six transfers or withdrawals, save yourself some trouble and get a checking account with unlimited transaction power.
  • Don’t pay bills from your savings or money market accounts. Your checking account makes the most sense for regular payment withdrawals. Reconsider setting up a direct debit from your savings account, which will count toward your six transactions.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Kate Ashford
Kate Ashford |

Kate Ashford is a writer at MagnifyMoney. You can email Kate at [email protected]

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Banking

I Lost My Debit Card, What Should I Do?

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

You’ve dug through your purse, rifled through your drawers and turned the house upside down — but no matter where you look, you can’t find your debit card. What do you do now?

Whether you have a lost debit card, or you suspect it could have been stolen, here are the immediate steps you should take to protect yourself.

Log into your account online as soon as possible

Check your account balance immediately and go over your purchase history for any transactions you don’t recognize, even if they are in small amounts. Take note of any purchases you know are fraudulent or unauthorized, and write down all the details.

You might even be able to disable or lock your lost debit card via your bank’s app or website, said Kris Alban, executive vice president of iGrad, a San Diego-based financial literacy company.

“Bank of America, Wells Fargo and a few other banks offer this feature, making it possible to shut down the card yourself within seconds of theft or loss,” he said.

Call your bank and notify them about the lost debit card

Let your bank know that you have a lost debit card, and inform them of any suspicious transactions you’ve noted from checking your account online.

Below is a handy alphabetical table of contact phone numbers for major U.S. banks, depending on whether you’re calling from the U.S. or from abroad. If you can’t find your bank below, check their website for their toll-free customer service number.

BankFrom the U.S.From abroad
Bank of America800-432-1000+1 315-724-4022
Capital One800-655-2265+1 804-967-1000
Chase800-935-9935+1 713-262-3300
Citibank800-274-6660+1 813-604-3000
PNC Bank888-762-2265+1 412-803-7711
US Bank800-872-2567+1 503-401-9991
Wells Fargo800-869-3557Check number to call here

Decide whether you want to cancel the lost debit card outright and get a replacement, or simply put a temporary hold just in case it turns up somewhere in between your sofa cushions. There may be a fee for the replacement card or to have it rushed to you in case you need it right away.

Whatever the course of action, make sure to keep track of your conversation by asking for the confirmation number for your case and the name and employee ID of the person you speak to. Keep this information somewhere safe and easily accessible.

Understand your rights under the law

According to Alban, the sooner you report your lost debit card, the more likely it is you’ll recover any funds that were stolen.

“While debit cards don’t have the same protections as credit cards, there are federal laws that protect you,” he said.

Federal law stipulates the following:

  • If you contact your financial institution within two business days of the discovery of the missing card, if fraudulent charges have already been made, the most you’ll be responsible for is $50.
  • If you wait longer than two days to report a lost debit card, your liability increases to $500.
  • If you don’t inform your card issuer for more than 60 days after receiving your next statement, you’ll be responsible for all unauthorized charges.

Thanks to the Electronic Funds Transfer Act, you are not responsible for any charges incurred on your card after you’ve notified your bank of its loss.

Cancel any recurring or scheduled debit transactions

Make alternative arrangements to pay your bills, so you don’t get hit with late fees or get your electricity suddenly cut off without warning. Update your suppliers as needed with your new bank card information once you receive it.

Follow up with your bank in writing, if required

Some banks may ask you to provide written confirmation of any disputed transactions on you account; make sure you follow up in writing within 10 business days.

In most cases, your bank or card issuer has 10 business days to investigate the issue. If they need more time, they need to issue a temporary credit to your account of the disputed amount — minus $50, maximum — while they continue to investigate. They have to correct any errors within one business day after determining them and must report their findings to you within three business days.

Implement a plan of action to ensure it doesn’t happen again

Some measures you can put in place for your added security include changing the PIN number to your card and asking your bank to alert you when purchases are made over a certain amount.

Ensure your bank can get ahold of you in case of an emergency, and that you also have their toll-free number handy if you need to contact them again in a hurry.

To avoid an embarrassing situation where you find yourself unable to pay, consider getting a backup credit card for emergencies.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Barbara Balfour
Barbara Balfour |

Barbara Balfour is a writer at MagnifyMoney. You can email Barbara here

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