Demystifying Bank Transfers

Have you ever had questions concerning transferring funds between bank accounts? In order not to have any questions in the future, you need to read the article describing possible solutions which you can use. Your choice should primarily depend on the specific needs of your business while there are at least four possible techniques, but each of them has its advantages and disadvantages. Let's start with a short description of the most widely used one. 

Bank transfer or bank wire is usually performed through a SWIFT system. You can benefit from it while it can be used for international money transfers and it takes only a few hours to clear. But the main disadvantage of this solution is that only a few systems allow doing wires in batch. 

A bank draft is a transfer of money between two banks, using a clearinghouse (e.g., ACH (US), BACS (UK), SEPA (Europe)). A bank draft is not performed in real-time, and funds transfer can take several days, but a bank draft can be done in batch, and processing costs are lower in comparison with bank wire.

Transfers through debit cards are preferably used for hight ticket transactions, and they help to reduce processing costs. Still, in such a case, you will have to process only the Durbin-regulated cards through PINless debit networks, and such a restriction might be inconvenient for some businesses.

If the information above is interesting for you, then you definitely need to have a look at the full article called 'Demystifying Bank Transfers' at #Paylosophy. But there is one more thing you can read about in this article. Interested? Then check out the article.