ACH Transfer Versus Wire Transfer

What's the difference between ACH, EFT & Wire Transfer payments?

ACH is automatic clearing house. This is used mostly when people get direct deposit into their checking/savings account from their employer when they get paid. There is no fee to receive direct deposit. Wire Transfer on the other hand is a bank to bank transfer using the Federal Reserve System. Both the sending bank and receiving bank will charge fees for this service. EFT is just another was of saying ACH where funds are automaticall pulled from your account.- Mostly this is used when paying a bill over the phone.
ACH are electronic transfers that go through the Automated Clearing House system which is a transfer that takes several business days. Its usually free, but some banks charge a nominal fee.

Wire transfers go directly through the Federal Reserve instead of an ACH third party, and they can post within 24 hours.

Wire transfers are usually the preference for people wanting to transfer significant amounts of funds very quickly and can't wait the 2-4 business days an ACH/standard EFT will take. But the price is usually quite substantial (most US banks charge between $20 and $50 for the service and that's just for domestic accounts, international fees will be higher).

Oh, and EFT is a generic term that can apply to either wire transfer or an ACH transfer. Both are electronic (Electronic Funds Transfer).


Wire Money
Free Money Sending
Transfer Money
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Money Remittance
Transferring Money
Xoom Money
International Money

How To Wire Transfer Money | Instantly, Online, International

It is also possible to transfer money online. The most popular website is WesternUnion. Completing a wire transfer over the Internet is done by following the same steps as a bank initiated transfer.

If you need to send money online, new services like PayPal and Google Check Out have taken the next step in instant money transfer.

Both sites allow you to send money over the Internet to any party with an email address.

If you are looking to wire transfer money in a short time frame, make sure you ask the bank for its deadline and transfer time.

 Most banks will transfer money the same day requested, but there is usually a deadline that you will need to be aware of if you need the money to be received by a particular time. When you are requesting the wire transfer, ask the bank when the money will arrive.

How to Wire Transfer Money

Before beginning the process of transferring money by wire, you should have the following information handy:

•How much money you wish to transfer. If transferring from a bank account, make sure that you have sufficient funds to cover the transaction, including any service costs. Fees for overdrawn accounts can be very steep!
 •Name of who will receive the money you are sending.
 •The bank account number of the party who is to receive the money.
 •The routing number of the bank or financial institution that holds the account the money is being sent to. This is also referred to as the ABA (American Banking Association) routing number.
 •The bank account number and routing number of the account you are sending the money from.

References

1. ^ Regulation (EC) No. 2560/2001. European Parliament and the Council of the European Union
2. ^ Regulation (EC) No 924/2009.
3. ^ http://www.bankofamerica.com/deposits/checksave/index.cfm?template=lc_faq_wire#question4
4. ^ Regulation J - Check Collection and Funds Transfer. BankersOnline.com
5. ^ Section 4A of Universal Commercial Code. Legal Information Institute.
6. ^ OFAC facts
7. ^ "Correspondent Bank Fees". Openoffshorebankaccountsfornonresidents.com. http://www.openoffshorebankaccountsfornonresidents.com/Wire_transfer_correspondent_fees.htm. Retrieved 2010-07-01.
8. ^ "Western Union Money Transfer Options". Westernunion.com. http://www.westernunion.com/info/osMoneyTransferOptions.asp. Retrieved 2010-07-01.
9. ^ Can Western Union Keep On Delivering?. BusinessWeek
10. ^ ^{a b} "Money Transfer South Africa". MoneyTransferSouthAfrica.org. http://www.moneytransfersouthafrica.org/starting-information/. Retrieved 2011-01-01.
11. ^ "Currency Specialists". franceforex.com. http://www.franceforex.com/currency-specialists-%E2%80%93-rapidly-growing-participants-in-the-foreign-exchange-industry-fxcompared-com-%E2%80%93-%E2%80%98golden-pages%E2%80%99-of-the-industry/. Retrieved 2011-01-01.
12. ^ http://www.swift.com/biconline/index.cfm?fuseaction=display_aboutbic

How to Open Swiss Bank Accounts

Swiss bank accounts aren't just accounts for millionaires, government officials, celebrities or criminals trying to hide their money. Anyone can open one. However, people tend to be attracted to Swiss bank accounts because, by law, Swiss bankers and their staff are not allowed to give out information about your account. They have strict rules regarding your bank account's

1 Find a Swiss bank you want to do business with. UBS and Credit Suisse are the largest. Or contact an Offshore Banking Advisor

2 Contact the bank and ask about its terms and conditions and whether there are any fees required other than the initial deposit.  When you apply, you will be asked to provide a copy of your Passport or IR, employment contract, a bill of sale or other similar documents.

3 Make an initial deposit of at least the minimum deposit amount. Many Swiss banks will require an initial deposit. The Swiss bank will assign you an account number.

 

How to Transfer Money to Iran

For transferring money to Iran, you have the options of mail money order, personal check, bank wire transfer, and Internet transfer companies.

Companies such as Money Bookers and Western Union specialize in sending money to and from Iran. 

MoneyBookers

• 1
  Contact the recipient and ask her for her email address. Let her know that you are sending her money through MoneyBookers, which is a company that delivers funds to email accounts. Upon sending the funds, MoneyBookers will send your recipient an email that will guide her through the procedure of depositing money into her bank account in Iran.
• 2
  Register with MoneyBookers on their website. You will only be able to send the money once you fill out the form by providing the necessary information, including your contact details and credit card or bank account information.
• 3
  Go to the home page and click the “Send Money” button.
• 4
  Enter the recipient’s email address and specify how much money you want to send.
• 5
  Confirm that you want to transfer this amount. The money will then be deducted from your bank account and transferred to the recipient's email address.

In Somalia, fears over US wire transfer block

Somalis fear blocking of US wire transfers will lead to hardship; officials seek solution

By Abdi Guled, Associated Press
MOGADISHU, Somalia (AP) -- Somali officials said Friday they are pleading with U.S. authorities to persuade banks to reconsider a decision to block money transfers from Minnesota's Somali community to relatives in this Horn of Africa nation, where anarchy has given safe haven to an al-Qaida linked terror group.
A bank that handles the majority of money transfers from Minnesota to Somalia — Sunrise Community Banks — has said it will discontinue the service at the end of December over fears it could be at risk of violating government rules intended to clamp down on the financing of terror groups. Minnesota political leaders Rep. Keith Ellison and Sen. Al Franken, both Democrats, are seeking solutions.
Omar Jamal, first secretary of the Somali Mission to the United Nations, said in an email on Friday that he is working with U.S. politicians on the issue and is "close" to finding a resolution.
"To cut off the lifeline to millions of Somali refugees will lead to a colossal humanitarian crisis in Somalia," Jamal wrote.
An untold number of Somalis depend on small remittances — perhaps $50 to $200 a month — sent from family members in the U.S. Even that small amount of money goes a long way in Somalia, and can make the difference between a dignified life and homeless poverty.
"Adopting that decision will be catastrophe to the lives of millions of who depends on remittances," Abdiweli Mohamed Ali, Somalia's prime minister, said earlier this week.
Halima Osman, a mother of five in Somalia's impoverished capital, is among many worried about an even bleaker economic future. The 50-year-old Osman typically receives $150 a month from her son in Minneapolis, who is the family's only breadwinner.
"Without remittances we shall lead a new life of poverty and famine because there is no other alternative to get money from abroad," said Osman, who lives in a dilapidated five-room villa in Mogadishu.
Jamal said he is urging money transfer companies — known as hawalas — to make sure "money doesn't fall into the wrong hands."
The decision to end Somali remittances came weeks after two Minnesota women were convicted in October of conspiracy to provide support to al-Shabab, the most dangerous insurgent group in East Africa.
Evidence showed the women, who claimed they were sending money to charity, used the hawalas to send more than $8,600 to the terror group, which has ties to al-Qaida. In another case, a Somali refugee in San Diego admitted this month that she sent money to the group.
Joe Witt, president and chief executive officer of the Minnesota Bankers Association, said banks are required to monitor their customers and report on certain types of activity. If they make a mistake or report something wrong, they face huge penalties.
"It's an incredible framework of rules and regulations, and if you do it wrong, it's absolutely a nightmare for the banks," Witt said.
Meanwhile, he said, money service businesses that wire funds internationally — especially to places that might be unstable — have been tagged as businesses that involve heightened security and compliance measures. While that doesn't mean every hawala is risky, he said a lot of banks have "made a determination that it's not a type of business they are comfortable in conducting."
Adan Hassan, spokesman for the Somali American Moneywiring Association and a manager at Kaah Express, a Minnesota-based hawala with locations in six other states, said the hawalas are subject to federal and state regulations, and he understands the regulations are necessary for national security and the well-being of the community. The hawalas must comply in order to keep their licenses.
Federal regulations require that hawalas ask for identification from anyone submitting over $3,000, Hassan said, though some companies require IDs for lower amounts as well. The hawalas collect the name, location, and phone number of the beneficiary, and the sender gives the hawala cash or a check or money order. The money is processed and the sender receives a receipt.
The recipient must present an ID to pick up the money on the other end, Hassan said.
Transfers to Somalia are not the only ones affected. Hassan said Kaah Express sends most of its transmissions to Kenya, which has the largest number of Somali refugees. Kaah Express also works with a well-established Ethiopian bank. He said those accounts are all affected, regardless of the destination of the money.
Humanitarian aid in a region beset by war and famine could be harmed by the banking decision, said a statement from Oxfam American and the American Refugee Committee. The group said Somalia's famine this year would have been far worse without remittances from the Somali community abroad.
"It is estimated that $100 million in remittances goes to Somalia from the U.S. every year. This is the worst time for this service to stop. Any gaps with remittance flows in the middle of the famine could be disastrous," Shannon Scribner, Oxfam America's Humanitarian Policy Manager, said. "The U.S. government should give assurances to the bank that there will be no legal ramifications of providing this service to Somalis in need."
If the new banking rules are put in place, Somalis in Minnesota say they will find other ways to send money. One way is to send the remittances to another country, such as Kenya or Britain, and then have a third party pick up the money and re-wire it to Somalia.
Ali, the Somali prime minister, said his government is working to make sure the link between American banks and the Somalia hawala system continues.
"We have sent a memo to the U.S. authorities to call off that decision because that will cause Somalis to economical crisis," he said. "The monies sent from abroad are backbone for the lives of thousands."