Money transfers are an essential part of our daily life. But what if you make a payment and it goes to the wrong person?
Money transfers are an essential part of our daily life. But what if you make a payment and it goes to the wrong person? It would be heart-wrenching to lose your hard-earned money due to silly mistakes. Imagine you require an instant money transfer, but choose a payment method that takes up days. It would make an emergency worse.
To avoid such mistakes in future, you need to understand how money transfers work and what transfer method you should use.
Things to consider before transferring money
1. The recipient details
Double-check recipient details before clicking on payment confirmation. The slightest error in the particulars mentioned can either cause a payment rejection. In worst cases, you might end up making a payment to a wrong recipient. Recovering money can be a hectic task, as the mistakes are not made from the bank/service provider’s end.
2. Check out the fees involved
Different payment methods allow you domestic fund transfer with different fee structures. So make sure to check out the charges involved before choosing one. Some payment methods are free, such as using eWallets and UPI. But these methods have a restriction on the total amount that can be transferred by a user.
3. Check the estimated delivery time
Delivery time can vary according to the mode of payment used for domestic money transfer. Payment systems such as UPI, card payment, and eWallets can transfer money instantly, while NEFT can take up a couple of days. Withdrawal of cash through cheques can take a week. So, before choosing a payment method, make sure you know the time required for completion of the transaction.
4. Understand the reason to transfer
Money transfer for an emergency should be instantaneous, while longer durations for non-urgent transfers won’t hurt. So, make sure you choose the payment option wisely by assessing the reason behind the transaction. If you need urgent cash, some SME finance companies in India allow you to make payments by providing you with a credit that you can repay later.
5. Options availability
Different banks/ service providers may or may not authorise every payment system. You need to submit and verify yourself using KYC forms to use eWallets. Some payment systems are required to be manually approved by submitting an application to your bank, such as net banking.
While some other payment methods require an in-person authorisation, such as cheques. You can alternatively choose a credit payment option by borrowing money from any SME finance company. Therefore, you need to figure out the available payment methods before making the transaction.
Conclusion
Domestic money transfer is an essential part of everyday business for most small- and medium-scale businesses in India. Different transactions require different payment methods, which can lead to people making unnecessary mistakes during payments. This guide provides a concise list of frequent mistakes that you should avoid while making online money transfers.
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