Financial Education: How to Transfer Money Person to Person

Whether you’re helping out a friend in need or covering your half of that dinner out last week you have a lot of options when you need to transfer money person to person these days. We’re going to cover some of the most popular, fastest, and cheapest methods.

Transferring money person to person (P2P) used to be a bit of a hassle and pretty limited. You’d either need a bank account, where you could wire the money, or you’d have to send a paper check.

The Best Ways to Transfer Money Person to Person

Today, there are so many options available, the question isn’t really how to do it anymore, it is which method is the best for me?

We’re going over some of the better options out there based on speed, popularity, cost, and flexibility.

Cash

Cost: Free

Where to conduct transfer: In person

Worldwide: No

Cash is probably the easiest way to transfer money P2P. There’s no fee, no limit, and no waiting. However, you obviously have to be able to meet in person – you never want to send cash in the mail. So, distance could be a barrier. Another con is there is no paper trail proving you made a cash transfer, so if you need proof of payment, you will have to use another method.

Money Transfer

Cost: Fee that varies on location

Where to conduct transfer: Community Currency Exchange Association member location

Worldwide: Yes

A money transfer is the modern-day money wiring service. Your local Community Currency Exchange Association member location can help you send money easily and within minutes with a money transfer. Just bring in the cash (some locations also accept a debit card payment) you want transferred, along with some basic information for the receiver. There are multiple pickup options for the receiver to accept their payment. Call your nearest CCEA location today for details. Money transfers can also be sent worldwide, making them one of a few great options for sending money internationally.

Venmo

Cost: Free (3% fee applied when using a credit card)

Where to conduct transfer: Online

Worldwide: No

Venmo is an awesome online P2P payment service. Both parties need to create a free account to use it, but setup is fast and easy. You transfer money using a contact’s phone number or email, and as long as you pay with your Venmo balance, bank account, debit card, or prepaid debit card, it’s completely free. Money that you receive remains in your Venmo balance. You can use this to make future money transfers or as payment options for websites/apps that are approved to offer Venmo as a payment option. You can also transfer it to your bank account or debit card. This is free but can take 1-3 business days. Venmo does offer an instant transfer to your U.S. bank account or debit card, that typically takes 30 minutes, for a 1% fee. They do not offer buyer or seller protection, so it’s best to use this app with someone you know and trust.

Zelle or Other Bank Person to Person Payment Service

Cost: Free (unless your individual bank charges you a fee for using it)

Where to conduct transfer: Online

Worldwide: No

Zelle lets you send and receive money between different bank accounts, so you do need a U.S. bank account to use this service. It’s easy and free. Hundreds of banks and credit unions are already integrated with Zelle. The best part about using Zelle is that, unlike many of the other P2P payment services, money is typically delivered within minutes. Zelle is similar to Venmo in that it is not for buying and selling and does not protect against these transactions.

PayPal

Cost: Free if using a linked bank account

Where to conduct transfer: Online

Worldwide: Yes

PayPal is probably one of the most well-known ways for sending someone money. It’s a simple way to send money to family and friends. It’s free – if you use a linked U.S. bank account or your PayPal balance. Unlike many of the other options here, there is a 2.9% fee for using a credit or debit card plus a fixed fee based on the amount of the transaction. Both the sender and receiver need to have a PayPal account, but it is free and simple to setup. You can transfer your balance to a linked bank account for free, typically within the next business day or so, or use their Instant Transfer feature for a small fee. PayPal also has options for sending money internationally to a PayPal account, although this does cost a fee.

Xoom

Cost: Variable cost

Where to conduct transfer: Online

Worldwide: Yes

Xoom is a PayPal service you can use to send money internationally to a bank account, for cash pickup, or for cash delivery straight to your recipient’s door! Options and fees depend on the location you are sending to and the method of payment.

Google Pay

Cost: Free

Where to conduct transfer: Online

Worldwide: No

Google Pay can be used to pay friends and family with a payment method through your Google Account. Payment methods for transferring funds must be a debit card or bank account. Transferring money is easy using a contact’s phone number or email and you can quickly cash out payments to a linked debit card or bank account. Google Pay is particularly secure and covers 100% of all verified unauthorized transactions.

Facebook Pay

Cost: Free

Where to conduct transfer: Online

Worldwide: No

You can now use Facebook Pay to transfer money to friends on Facebook, Instagram, and Messenger for free. All you need is a linked payment method such as a credit card, debit card, or PayPal account. Security measures in place like fraud detection, a personalized PIN, and your own device’s protection practices, like fingerprint or facial recognition, help to keep this a secure method of payment.

Consider This When Transferring Money

Although there are so many more ways to transfer money P2P now, there are some things you should always keep in mind before choosing a service.

Firstly, remember that costs and stipulations always change. What might have been free or easy to use at the time of this posting, might not be in a week, month, or year. So, always do your research before deciding how you’re going to transfer money.

Secondly, some of these services mentioned provide protection for your money transfers; others do not. If you want to be sure that your money transfer is safe and guaranteed, you need to check the terms of the service provider.

Lastly, a lot of the current P2P payment services today require both the sender and the receiver to have an account. You’ll need to check with the person you are transferring to before-hand if you want to avoid a hassle. They may not want to create an account or might have a difficult time creating one if they aren’t tech-savvy.

Call or stop by your nearest Community Currency Exchange Association member location to see how we can help you quickly and easily transfer money person to person.