Last Updated on 2023-06-26
Six Ways to Transfer Money
- Transfer online from one account to another. (ACH Transfer)
- Use a wire transfer
- Use a money-transfer app
- Send a money order.
- Write a personal check.
- Buy a cashier’s check.
ACH Transfer
ACH, which stands for Automated Clearing House, is a low-cost money transfer system in the United States. On banking websites or mobile apps, transfers through ACH are often referred to as “Transfer” or “Money Transfer.” To initiate such authorized transfers, you will typically need to provide the routing number and account number. ACH serves primarily four purposes:：
- Transferring funds between different bank accounts belonging to the same person.
- Some banks support transfers between different individuals within the same bank.
- C2P (Company-to-Person) transfers, such as salary payments, tax refunds, etc.
- P2C (Person-to-Company) transfers, such as tuition fees, rent payments, etc.
Advantages: ACH transfers are usually free and suitable for moving funds between accounts belonging to the same person.
Disadvantages: Transfers typically take 2 to 3 business days to complete, and there may be daily or monthly limits on the transfer amount. It is not a practical option for transferring money between individuals’ accounts from different individuals. Instead, self-to-self transfer is ok.
Direct Deposit
Many banks require setting up direct deposit to qualify for account opening bonuses or to waive account maintenance fees. Direct deposit is often facilitated through ACH, with employers using ACH to deposit salaries into employees’ accounts.
Routing Number (ACH)
A routing number for ACH transfers consists of a 9-digit code that varies based on the geographic location of the bank branch. It may be labeled differently on bank apps or websites, such as:
- Routing Number (Chase)
- Paper & Electronic Routing Number (BoA)
- ACH Routing Number
- Direct Deposit
To find this number for direct deposit purposes, you can check your bank’s app, online banking platform, or look at the bottom-left corner of your checks.
Set up a self-to-self transfer
Before initiating your first personal transfer, you’ll need to authenticate and link your account. There are two methods to link your account, both of which can be done online:
- Direct Login to the Bank Account:
- You log in directly to your bank account through the ACH transfer service.
- Temporary Amount Deposits:
- The bank deposits temporary amounts into your linked account.
- You need to verify and enter those amounts in the ACH transfer service to complete the account linking process.
ACH linking is unidirectional. Once you have linked Bank B to Bank A, you can transfer funds (ACH Push) from Bank A to Bank B or initiate a request to pull funds (ACH Pull) from Bank B to Bank A. However, you cannot initiate a push or pull from Bank B to Bank A without first linking Bank A to Bank B.
Wire Transfer
Commonly used for larger transfer amounts or urgent transfers, wire transfers require the recipient’s name, branch address, routing number, and account number.
Advantages: Same-day fund availability, ability to transfer across banks, and acceptance of larger transfer amounts.
Disadvantages: Both the sender and recipient may incur fees (around $15-$20).
Routing Number (Wires)
A routing number for wire transfers consists of a 9-digit code that typically represents the financial institution. Regardless of whether it is a domestic or international wire transfer, or which branch the account is opened with, the routing number for wire transfers is usually the same. It may be labeled differently on bank apps or websites, such as “Routing Number for Wire Transfers,” “Wires,” or “Domestic Routing Number.”
Common Wire Transfer Routing Numbers:
- Chase: 021000021
- BoA: 026009593
- PNC: 043000096
Different Transfer Methods Have Different Routing Numbers
The routing number required for ACH transfers may differ from the routing number required for wire transfers. If unsure, it is important to verify with the bank or financial institution.
History of Routing Numbers
Routing numbers, also known as Routine Transit Numbers (RTNs), are 9-digit codes distributed by the American Bankers Association (ABA). They have been used as identifiers for financial institutions, from the early days of paper check transactions to the recent electronic payment methods like Fedwire and ACH.
Money-Transfer App
Money-transfer apps involve payment being debited from your account balance or linked personal financial accounts (checking account, debit card, and credit card), and the recipient receives the funds in their system account. In some money-transfer apps, the account balance needs to be transferred to the linked bank account. As it is an instant transfer, once submitted, it cannot be reversed. The transaction platform does not provide protection for the payer, so it is important to pay attention to the transfer amount and recipient.
Zelle
Zelle is an instant interbank transfer system that allows you to transfer funds by knowing only the recipient’s mobile phone number or email address. If your bank is a partner of Zelle (most major banks are), the Zelle service is typically integrated into your bank’s app.
Advantages: Instant fund availability, ability to transfer across banks, no fees, and convenient operation.
Disadvantages: Daily or monthly limits on outgoing transfers (e.g., PNC: $1,000/day, $5,000/month; Chase: $2,000/day, $16,000/month), and the recipient needs to have Zelle. Currently, Zelle only collaborates with banks within the United States.
PayPal
PayPal is a well-established third-party transfer service that also serves as a payment channel for online shopping. For transfers, you can locate the recipient using their email address, and there are fees for transfers using debit cards and credit cards. Regarding online shopping, there are no fees for the buyer’s payment methods, and it offers the feature of protecting credit card information. Once the identity is verified, the single payment limit is $10,000, with no overall limit. It supports 25 currencies.
Venmo
Venmo is a emerging transfer app with social elements. The application process only requires your name, email, and a US phone number. You can find the recipient for transfers by their username or QR code, and you can also add friends (optional). Apart from transfer fees for credit card transfers, other methods are free of charge. There are weekly limits on outgoing transfers: $299.99 for unverified accounts and $2,999.99 for verified accounts. Venmo only supports US dollars.
票據
Personal Check, Money Order, and Cashier’s Check are common types of financial instruments in the United States, each with different purposes and issuance methods.
Personal Check
A personal check is a payment instrument made up of the ACH routing number and account number from a checking account. The account holder fills in the amount and signs the check to use it for payment. You can purchase personal checks from banks, check printing companies, or warehouse-style retailers like Costco or Walmart. Some banks offer free personal checks for premium accounts. To cash a personal check, you need a bank account, and you can do so at a teller counter, through an ATM, or via mobile banking (with limits).
Fraud Alert
It’s important to note that a personal check is not equivalent to cash and carries risks such as bouncing, being canceled, or having a mismatched signature. Therefore, it’s advisable not to accept personal checks from unfamiliar sources.
Money Order
A money order is a guaranteed payment instrument that functions similarly to a “hui piao” in the Taiwanese financial system. It does not carry the risk of bouncing. The money order includes the recipient’s and payer’s information, addresses, and the amount (up to $1,000). These details are printed by the issuing institution, and only the recipient can cash it. Money orders are a secure and non-negotiable form of payment. They can be purchased at post offices (USPS), stores like Walmart or CVS, and typically incur a fee of around $1. Recipients can cash money orders at banks, post offices, or other authorized locations that sell them.
Important considerations when purchasing a money order:
- Debit card or cash payment is accepted; credit card payments are not.
- Remember to keep the receipt. In case of loss, you can request a refund based on the receipt.
- Although the address on the money order may not be a required field, some payees (e.g., US government agencies) may require complete addresses for money orders.
- Purchasing money orders exceeding $1,000 in a single day may require photo ID verification.
Cashier’s Check
A cashier’s check is a guaranteed payment instrument issued by a bank. It does not carry the risk of bouncing. The cashier’s check includes the issuing bank’s information and the signatures of bank officials. Purchasing a cashier’s check involves debiting funds from your personal bank account, and it usually incurs a fee of around $10 to $20. Cashier’s checks are commonly used for large purchases, such as buying a car.