A wire transfer and PayPal are both used as a medium to send and receive money. These are also methods to send money from one account to another, if you have bank accounts in at least two different banks. You won’t have to physically go to one bank and withdraw money, and then go to the second bank and deposit the funds into your bank account there.
PayPal is one of the more popular and more reputable ways of transferring money electronically. If you have a PayPal account and your recipient has a PayPal account too, then you just transfer money from your account to his.
Your Paypal account can be tied to your bank savings account or credit card so you can simply add money from your bank account to your PayPal account and then transfer the funds to your recipient’s PayPal account.
You can even add two bank accounts to your PayPal account. This will just take a few days, as PayPal will first verify your bank accounts.
To transfer money from one bank to another through Paypal, first you need to choose the bank account from which you would take out the money from and then simply transfer the funds to your PayPal account. This will take 2-3 days to complete.
When that’s done, you then access your PayPal account and use the “withdraw” function. You select “transfer to bank account” and you choose the other bank account to receive the money you transferred. In three to five business days, that money will appear in the second bank account.
The entire process can take up to 14 business days, so it’s not suitable for emergencies when you need to transfer money quickly. But at least it is completely free and you don’t have to leave home to do it.
Using a Wire Transfer
A wire transfer generally refers to any electronic means of sending money. This means that using PayPal is actually a kind of wire transfer, technically speaking.
But for the most part, a wire transfer refers to using banks or commercial services like Western Union to transfer money from one place to another. With banks the recipient must have an account with that bank, and the bank you use should offer a wire transfer service. Some banks, for example, may only enable wire transfer when both accounts are with the same bank. If you use bank ABC, and they have a location in the city where your recipient lives, then he can just open a bank account with that bank. You can then transfer money from your account to the recipient’s bank account.
You can also just send money through Western Union for a small fee. You just need to fill out their form and they will give you a code called MTCN. You need to give this code to your recipient so that he can claim the money you sent. He must also show proof of ID before he can get the money.