The Best Way to Transfer Money Domestically

4 min read

When it comes to sending money to someone, there are no shortage of options—especially if the recipient lives in the same country. While cross-border and international funds transfer come with a few extra hoops to jump through, domestic transfers are much more straightforward. You can very easily send money directly to the recipient. It begs the question: what’s the best way to transfer money domestically?

There are several ways to send and receive money domestically, but not all of them offer the same prospects. In fact, the best way to transfer money domestically often depends on who your recipient is, how much you’re sending, how quickly you need to transfer funds and how often you’re sending money. 

Here’s a quick breakdown of the best ways to transfer money to domestic recipients, and why these modes work so well.

Best for speed: domestic wire transfers

We’ve all been in a situation where time is of the essence. When that situation involves money, it’s even more crucial to make sure you have the means to get someone the funds they need, fast. Enter: domestic wire transfers. 

Domestic wires offer unrivaled speed when it comes to sending money to a recipient—often same-day. Through these transfers, you can walk into a bank in the morning and have the funds landed and in someone else’s account later that afternoon. At their very slowest, domestic wires are next-day transfers, which means you never need to worry about delays. There’s no quicker way to transfer funds domestically. 

Just make sure you’re not relying on wire transfers too often. These transfers come with a hefty price tag per transaction—roughly $25 per outcoming wire and $5 per incoming wire. These fees vary from bank to bank, but add up very quickly if you’re wiring money more than sparingly. It’s good to have the option to send money quickly, but only as a last resort or in rare cases. 

Best for cost: ACH bank transfers

If the cost of wire transfers has you re-thinking your approach to domestic transfers, consider the more cost-effective alternative: ACH bank transfers. While not as lightning-fast as wires, Automated Clearing House (ACH) bank transfers still process in just a few days and, best of all, cost nothing. 

ACH transfers are great for recurring payments and transfers, and they’re simple enough to execute as long as you and your recipient both maintain accounts with traditional banks. You’ll need to set up each recipient as a payee through your bank, which can take some time—but it’s worth it if you’re going to send them recurring payments on a regular basis. For a no-cost approach, it’s largely unbeatable. 

There are a few downsides to ACH bank transfers. For one, every bank has its own batching rate, which means it could take two days to send funds… or it could take five or six. Moreover, there’s no transparency in the transfer process, so you likely won’t know where your funds are until they leave your account or land in the recipient account. 

Best all-around: digital payments

As the world of funds transfer becomes increasingly digital, digital payments have naturally emerged as one of the best all-around ways to send someone money. This solution requires both parties to have digital wallets, but those wallets unlock a world of functionality, transparency and simplicity. 

For starters, all you need to send money to someone is their wallet ID. No more gathering personal information or account and routing information. So long as you have the wallet ID, the funds will get to the right place. Moreover, you’ll have complete visibility throughout the transaction: the ability to see where your funds are at any given time. Finally, broad integrations make it possible for wallet owners to use their funds however they’d like: transfer to a bank, to another wallet owner or even use them to make payments. 

The only real obstacle in sending funds domestically through a digital payment platform like Veem is that both parties need a wallet. Some people may be hesitant to set up a wallet or accept payment via the digital payments platform because they’re used to traditional bank transfers. However, the transparency and ease-of-use of digital platforms is often enough to win even ardent resistors over. 

Consider your domestic funds transfer needs

When it comes to transferring money domestically, you’ve got plenty of options. The best way to transfer money domestically depends on your situation. Need to get it there fast? Wire transfer is the way to go. Sending payments frequently? ACH is a great option. Looking for a one-and-done solution to funds transfer? Digital payment solutions are ideal. Choose the one that works best for your situation!



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