3 Types of Money Transfers and How to Do Them

3 Types of Money Transfers and How to Do Them

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Technological advancements are making life easier for both businesses and consumers, with innovations such as transferring money without needing an ATM. Several new technologies facilitate this process. Consequently, you no longer need to go out to find the nearest ATM and endure long queues.

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So, what are the technologies that enable money transfers without using an ATM? Before explaining that, it's essential to understand the types of money transfers available in Indonesia. Please read the article below for more information.

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Types of Money Transfers in Indonesia

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There are three types of money transfers in Indonesia:

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1. Interbank Account Transfers

This type of transfer is commonly used by Indonesian citizens. Transfers can be made between the same bank accounts or different bank accounts. However, it's important to note that transfers to different accounts incur an admin fee of Rp6,500. However, over time, some banks have reduced the admin fee to Rp2,500.

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2. Transfer from Sender without a Bank Account to Receiver with a Bank Account

This type of transfer is conventional. The process involves visiting a bank branch, approaching the teller, and initiating the transaction. Typically, you only need to fill out the required forms for transfer confirmation. Similar to the first type, this transfer incurs fees according to the bank's terms and conditions.

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3. Money Transfer Without a Bank Account

This type of transfer is when both the sender and receiver do not have bank accounts. There are three methods:

• The sender visits a bank to receive information about the procedures according to regulations.
• The sender visits a post office. The process is similar to that of a bank: filling out forms, verifying confirmation, and conducting the transaction.
• The sender goes to a Western Union (WU) service. However, WU is mainly used for international transfers. This method is preferred for its ease, speed, and security.

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Ways to Transfer Money Without Going to an ATM

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There are four ways to transfer money without visiting an ATM:

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1. Mobile Banking

This method is relatively easy, safe, and fast. The sender only needs a mobile phone and to download the mobile banking application. From the app, you'll require a username and password to make transfers. Make sure to remember your username and password for easy login. You only need to enter the account number and transfer amount. Then, you'll receive the recipient's name. If everything is correct and confirmed, you can proceed with the transfer.

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2. Internet Banking

Another fast and easy money transfer technology is internet banking. You can only do this through a laptop, computer, or mobile phone with an internet connection. The advantage of mobile or internet banking is that you can transfer money anywhere, anytime. You don't need payment confirmation because it automatically goes into the recipient's account.

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3. Transfer via Retail Outlets

In addition to the above methods, you can transfer money through retail outlets like Indomaret and Alfamart. You only need to visit one of these outlets. When making the transaction, the staff usually asks for identification such as an ID card, driver's license, or similar, and the recipient's phone number. The phone number serves as the retrieval code for the recipient to collect the money. However, the recipient can collect the money from a retail outlet that is not the sender's location for fund transfers. The crucial thing is that the recipient has the retrieval code.

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This transfer method still incurs administrative fees for the sender, depending on the chosen retail outlet.

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4. Post Office

One way for senders to transfer money is through the post office. There are several services available, commonly referred to as postal orders. These include:

• Instant postal orders, meaning money is sent in real-time. You only need a PIN to transfer funds.
• Partnership postal orders, which involve collaboration with a third party. Fees vary depending on the agreement.
• Prime postal orders, which involve sending money with a notification letter. The recipient will collect the money according to the notification letter.

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Once you understand the types and methods of transferring money without using an ATM, you can implement them in your business. To ensure your business can thrive, integrate with digital financial services like Brick. Make sure your business accepts bank transfer payments by activating virtual accounts with Brick. Provide various payment methods and receive automatic notifications.

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