The latest trend in money transfers is the Online Money Transfers. Under this, the money is transferred online from one account to another. There are various ways of doing an online money transfer.
Most banks offer this method. If you have signed up for the Internet user ID and password for your account, you can transfer money online from your account to the account of another person. However, most banks allow money to be transferred only to another account with the same bank due to security reasons. It is a safe and convenient method if the user takes care not to misplace his password.
The other form of online money transfer is using your email account. Companies like PayPal provide facilities for online transfer of money. This is quite an ingenious way of transferring money. Paypal requires you to create an account using your email ID. Once your account is created, you can fund it using either your credit card or your bank account. The funds in your account can be instantly transferred to another Paypal account. Money can be withdrawn from the PayPal account of the receiver either online, to the linked bank account or a check can be requested.
Banks and a lot of governments encourage online money transfers as well. In such cases there is no physical money changing hands. This helps the economy of a nation, as the government does not have to spend money on printing and maintaining currency notes. This type of money transfer is especially beneficial for long distance or international transfer of money across different countries. Companies such as Western Union, which have traditionally been in the money transfer business, also offer online money transfers.
Recently credit card companies such as Visa and MasterCard have also introduced online money transfer services which allow the quick transfer of money from one credit or debit card account to another.