If you need to send money to someone, but they don't have a bank account, there are other options to consider. More than 9 million people in the United States fit that description, according to a recent FDIC poll. The good news is that you can send money to someone else even if you don't have a bank account.
Here are some of the quickest, most convenient, and least expensive ways to transfer funds to someone who does not have a bank account. This is one of several possible money resources. If you need to send money to someone quickly but are having trouble, you may consult a financial counselor. They can assist with all aspects of your financial situation.
About 1.7 billion adults need access to a bank account in 2017. How, then, can one assist a person who lacks a bank account? Fortunately, alternative, low-cost, and safe ways exist to transfer funds to loved ones. In this article, we'll go over the steps necessary to send money to someone without a bank account, so you can relax knowing your loved ones will get the money you sent them.
1. Money Order
Cash orders function similarly to personal checks. But they aren't connected to a particular bank in any way. You should, instead, purchase one with the Money you want to transfer. The final step is to get it notarized and sent to the appropriate party in exchange for payment. You may buy a money order at any post office, Walmart, CVS, or many supermarkets and petrol stations. The going rate is between $1 and $2.
Sending Money over the mail might be risky, but money orders are a cheap and secure option. You can track the whereabouts of the Money you transfer with the money order receipt you receive. You also don't have to worry about your Money getting stolen or misplaced in the mail. And if the recipient hasn't cashed the money order yet, you can usually cancel it.
2. Credit Cards
One option for those without access to a bank account is to use a credit card to pay for a money transfer. Although this is a convenient option for those without a bank account, it's important to remember that there are typically additional fees connected with a transaction of this nature.
You can save money by comparing different transfer providers. You may get your hands on cash in minutes using a money transfer service that accepts credit card payments. This approach may be more convenient, but it could also be more expensive.
3. Walmart-to-Walmart
More than 3,000 Walmart supercenters may be found in the United States, as documented by Statista. In addition to being a supermarket, Walmart is a money transfer service. Customers can stroll into any location and transfer funds to any other site. The recipient must collect it from Walmart to where the Money was sent. Walmart adds $4.50 if the total is under $50. The cost is $9.50 if the amount is between $51 and $900. You can transfer up to $2,500 for $18.
4. Mobile Wallets
Mobile wallets, also known as e-wallets, offer a viable alternative to sending cash when neither party can access a bank account. Most of these mobile wallets are free to use and don't require you to have a bank account to make purchases. Famous examples of mobile payment systems include:
- Google Pay
- Samsung Pay
- Apple Pay
To add cards to your mobile wallet, download the appropriate app for your platform, launch it, and follow the on-screen prompts. Mobile wallet payments, encrypted for added protection, are swiftly gaining popularity in Australia. The Roy Morgan, Digital Payments Report found that by 2020, 10.8% of Australians were using mobile payment systems.
Your recipient can set up a mobile wallet with either a debit or credit card, and the Money you send them will be deposited into that wallet—one of the quickest and least expensive ways to send money worldwide.
Remember that to minimize transfer costs, both the sender and the recipient must use the same mobile wallet service. Foreign exchange costs may apply if you transfer in a currency other than the one you originally paid.
5. PayPal
PayPal is still the gold standard for apps that allow you to send and receive Money online. When utilizing PayPal, you only need the recipient's email address or mobile phone number to send money to them in more than 190 countries.
However, they must create a free account to access the Money. The service is compatible with over 20 different currencies. You won't be charged a fee if you pay for the transfer out of your PayPal balance or a debit card linked to your account. A 2.9% transaction fee plus a 30-cent fee would be incurred otherwise.
Fees for international PayPal money transfers range from 0.5% to 2%, depending on whether you pay from your PayPal balance or a linked bank account. If you use a credit or debit card that is not linked to a bank account, the cost can be as high as 3.9%.
