Transferring money online is an easy way to move funds around when you need to.
In fact, online banking offers many money transfer options. This is much simpler than transferring money through paper checks or cash transfers. But with that ease and convenience comes the possibility of theft and fraud.
To help you minimize these risks, we’ve assembled a list of five common mistakes with money transfers that you should avoid.
1. Not Using Credit Cards When Shopping Online
One of the most common mistakes with money transfers is to not use a credit card for online shopping.
Safe money transfers are critical, and much online theft and fraud follows from hackers getting their hands on credit and debit card info. That’s why it’s always a good idea to use secure credit cards with good consumer protection mechanisms.
Debit cards are riskier to use online since it’s usually very difficult to recover stolen funds.
2. Not Finding the Best Exchange Rate
If you’re transferring money abroad, it’s a good idea to shop around for competitive exchange rates.
Now, currency values are one thing, and they remain the same regardless of which bank or provider you’re using. But exchange rates are different, and they can vary depending on which service you’re using to make a money transfer.
Check with sites like transferly.com to review other money transfer options and services, as well as the exchange rates and money transfer fees they offer.
3. Not Signing Out After a Bank Session
When transferring money online, it’s important to remember to log off after you’re finished.
These are the situations that can provide opportunities to hackers and identity thieves, which is why you must remain vigilant when doing any online banking. Always make sure that you sign out before exiting a banking app or web browser.
4. Not Minding Transfer Timing Restrictions
Many banks and transfer services observe certain money transfer timing restrictions.
As an example, some banks may require that a money transfer request be made by a certain time—1:00 pm local time for same-day service, for instance, or 3:00 pm local time for next-day service.
It’s easy to overlook these timing restrictions, which can leave you short of funds when you need them most.
5. Sending Money to People You Don’t Know
Okay, this one may seem obvious, but it bears repeating.
Transferring money to friends, family, and other loved ones is one thing, and there’s a level of trust or at least personal interest involved. But sending money to strangers is one of the biggest mistakes with money transfers that people make.
There are countless online scams that involve sending money to strangers, so do yourself a favor and avoid doing this at all costs.
Avoid These Common Mistakes With Money Transfers
The ease and convenience of online money transfers account for their popularity in the world of financial transactions.
But don’t let this convenience become an opportunity for the nefarious activities of hackers and fraudsters. Avoid these common mistakes with money transfers, and keep your financial transactions safe and secure.
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