How to send someone money: 9 swift and safe ways

1. Money transfer apps

Money transfer apps can offer fast ways to send money internationally and domestically to businesses, friends, and family. This method typically requires the recipient's email, phone number, or username to send funds through one of these apps.

Many money transfer apps are free to download, but transactions may incur fees depending on the connected bank or transfer specifications. Business payments, large sums of money, and international payments may carry extra fees.

2. P2P payments

Another way to send money to people is through peer-to-peer (P2P) payments.

Senders make P2P payments through a website or money transfer app, which links to each party's bank account or credit card. P2P payments can typically be made with just a few taps or clicks.

While people often use the terms "money transfer app" and "P2P payment apps" interchangeably, there are some notable differences. P2P payments specifically refer to sending money directly from one individual to another, usually for personal reasons like splitting a bill or repaying a friend.

Many money transfer apps facilitate P2P payments but also offer a wider range of services. Examples include international transfers, business payments, bill pay, or even cryptocurrency transactions, going beyond just person-to-person exchanges.

So, P2P is a type of transaction that many money transfer apps support, but not all money transfer app features are strictly P2P.

3. ACH transfer

ACH transfers are one of the more traditional ways to send money to someone, processed in batches through a centralized network (the Automated Clearing House in the US).

Banks collect multiple transfer requests daily and send them together for processing. These transfers are generally slower, taking anywhere from one to three days, but same-day transfers are sometimes possible for an additional fee.

People generally use ACH transfers to send money domestically. They're ideal for recurring payments, like direct deposit of paychecks, automatic bill payments, online bill pay, and person-to-person app transfers.

4. Wire transfer

Wire transfers are real-time transactions that move directly from one financial institution to another through secure networks (like Fedwire in the U.S. or SWIFT for international transfers). International transfers can take 1-5 days, while domestic wire transfers can happen the same day or even in minutes.¹

Wire transfers are generally irreversible, meaning that they can't be cancelled after someone sends them. Because they're secure and have high transfer limits, people often use them for urgent, high-value, or time-sensitive transactions, such as real estate closings or large business payments.

5. Digital wallets

Digital wallets are a convenient way to send money to others directly from a smartphone or other compatible device. Typically, the user links their bank account, debit, or credit card to the digital wallet app (like Apple Pay, Google Pay, or PayPal).

Then, to use the digital wallet, simply open the app, select the recipient from their contacts (often using their phone number or email), enter the amount, and confirm the transfer.

The digital wallet acts as an intermediary, either drawing funds directly from the linked payment method or from a pre-loaded balance within the wallet app itself.

It then electronically transfers the money to the recipient's digital wallet or, in some cases, directly to their linked bank account. This process often happens instantaneously or within minutes, making it a fast and efficient way to send funds or pay for goods and services.

7. Personal check

A personal check is a traditional method for sending money in which the person writes a physical instruction to their bank to pay a specific amount to a designated recipient.

To send money this way, the sender fills out the check with the date, the recipient's name (the "payee"), the monetary amount in both numbers and words, and then signs it. They then physically give or mail this check to the person they wish to send money to.

Once the recipient receives the check, they can deposit it into their own bank account or cash it at their bank. The funds will then be drawn from the sender’s checking account.

8. Cashier’s check

A cashier's check is a secure form of payment that is guaranteed by the issuing bank, rather than by a personal bank account. To send money using a cashier's check, a person visits their bank or credit union and requests one. They'll need to provide the exact amount and the name of the person or entity they're paying (the "payee").

The bank will then withdraw the funds directly from the person’s account (for a small fee) and issue a check drawn on the bank's own funds, not the person’s. The person then gives the check directly to the payee.

This method is considered secure because the bank's backing eliminates the risk of the check bouncing due to insufficient funds in the personal account.

Cashier's checks are often required for large transactions, like down payments on a house or car, or when dealing with parties a person doesn’t know well, as they offer a higher level of assurance than a personal check.

9. Money order

A money order is similar to a check; it's a prepaid document that people can use as a form of payment. However, they can be a more secure way to send someone money than paper checks or cash.

Here’s how they work:

1. Purchase: A person buys a money order from a bank, credit union, or other retail location, paying in full up front (typically with cash or a debit card).
2. Information: They'll fill in the recipient's name and sometimes their address, as well as their own name and address.
3. Delivery: They give or mail the money order to the recipient.
4. Cashing: The recipient can then cash or deposit the money order at a bank, credit union, post office, or check-cashing service. They will usually need to endorse the back and show identification.

Key considerations when sending money to someone

Safety and security are major factors in protecting personal and financial information when transferring money online. Below are some key considerations for when choosing your method of sending money.

• Convenience: The method of sending money should be convenient for both the sender and the receiver. This means it should be fast, easily accessible, secure, and without hidden fees.
• Cost: Fees for sending money vary by method, with some free and others, like international wire transfers, potentially costing upwards of $50. Individuals should choose the method that best fits their needs and budget.
• Fraud protection: Not all methods of sending money include fraud protection. Payment apps and wire transfers have systems in place, whereas a paper check is less secure.
• International transfers: Options are more limited when sending money internationally, so consider an option like wire transfers, which are relatively secure and fast.
• Security: Different transfer options have varying degrees of security. For example, a payment app like PayPal is encrypted, ensuring data remains secure, whereas a personal check is less secure as there’s the risk of check fraud.
• Speed: Transfer lengths vary by method, with some being instantaneous, like peer-to-peer apps, and others taking multiple business days to complete.
• Transfer limits: Certain transfer methods or applications may limit the number of transactions a user can complete within a certain timeframe.
• Verification: Many types of transfers are irreversible once sent, so it's a good idea to verify all recipient details.

Safe and secure money transfers with PayPal

There are many different ways to send someone money, whether looking to pay a friend back or send funds to a person who doesn't have a bank account. Choosing the right one is about knowing how soon the money needs to get to the recipient and how secure the transfer needs to be.

Discover how to send someone money online with PayPal’s digital wallet.