Money transfer

Electronic funds transfers (EFTs) or direct deposits (also sometimes separated into internal and external funds transfers depending on where the money originates and terminates) are digital money transfers that move funds from one bank account to another. As a digital transaction, there is no need for paper documents, and they have become a predominant method of money transfer either for individuals between accounts or for direct payments, such as in the case of employers paying employees. EFTs have largely made paper checks obsolete as a money transfer method.

In-person transfers require a specialist money transfer service in which a person visits an agent location and purchase a money transfer for a given individual, who can then pick up the money transfer at an agent location near them. These transfer types do not require users to have a bank account.

As noted above, checks are largely obsolete, made so by ETFs and peer-to-peer transfers. However, checks remain a money transfer type allowing users to move money from one checking account to another account (generally, to a different person's account, although in some cases it can be deposits between institutions). Checks tend to take a few business days to clear, during which time the money is pending in an account.

Peer-to-peer (P2P) transfers are generally handled by payment apps like Venmo, Paypal, Cash App, and Zelle and allow users to send money to friends or families or pay small businesses directly from a bank account. However, many P2P apps do not automatically move money into a bank account, and these systems require a user to have money in the account to begin with, before that funds have to be transferred into or from a different bank account. These transfers can have different fees, processing times, and transaction limits depending on the app.

A postal order is similar to a paper check and in-person transfer, in which an individual can purchase a postal order which moves money to the recipient of the postal order. Unlike a paper check, a postal order leaves the sender's bank account upon purchase. Another disadvantage is that these money transfers, when sent by the post, risk loss, damage, or theft while in transfer. Postal orders are also known as money grams or money orders.