Bank Transfer: Definition, Types and Classification, and Commissions

Everything you need to know about what a bank transfer is, we tell you its main definition, types and classification, commissions, and more.

What is Bank Transfer?

A bank transfer is a transfer of money that is made through banking entities, from the account of a person who orders the transfer to the account of another that receives the money ( beneficiary ). It is executed between different banks, that is, there are usually at least 2 banking entities involved.

When transfers are made within the same bank, that is, when the person ordering and the beneficiary have their account at the same bank, the transfer is called a transfer.

Types of Bank Transfers

Bank transfers can be classified according to different criteria, including geography, method, and time.

Depending on Geography

Depending on geography, bank transfers can be:

  • National: when the payer and the beneficiary are in the same country (the USA, for example).
  • Foreign: when the payer and the beneficiary are in different countries (USA and Canada, for example). Transfers between localities could also be included within this classification; However, as the banking systems are national, it does not usually make a difference to make a transfer between localities or within the same locality.

Depending on the method

Depending on the method with which it is ordered, bank transfers can be:

  • Through ATMs: some ATMs have the option of making bank transfers by introducing the card and the data of the destination account.
  • At the branch: we can go to a bank branch and order to make a deposit in a person’s account.
  • By phone or fax: you can call the bank or send a fax with the transfer details.
  • By internet: banks have online platforms with which people can make transfer orders from home or work without having to move to a site.

Function of time

Time-based bank transfers can be classified as follows:

  • Ordinary: which takes between 1 and 2 business days. This varies depending on the regulations in the countries.
  • Urgent: they are credited the same day to the beneficiary’s account.
  • Immediate: as soon as the transfer is made, the beneficiary has the money available in his account. This usually happens when transfers are made.

Bank Transfer Fees

Operations through banking entities generate an expense, and in this way, these entities manage to generate income to maintain their activities. This expense represents the commission that must be paid by those involved in the transaction.

The fees for bank transfers depend on the nature of the transfer, that is, on the classification seen above:

  • Ordinary transfer: the commissions of ordinary transfers are usually low, but can vary depending on the method by which they are requested.
  • Transfer: transfers are usually free of commission because they are an operation within the bank.
  • Refund: when a transfer is not made because there was an error in the data indicated by the payer.
  • Transfer abroad: this type of transaction usually charges a higher amount than national ones.
Ahmed Ismailhttps://www.ipostjournal.com/
Post Journal is a Smart Journal, which provides internet viewers access to world news and real-life stories. Whether it is entertainment, Technology, Allrecipes, business, Insurance, Lifestyle, Travel or such.

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