Ways to secure big online money transfers

Ways to secure big online money transfers

Big money transfers require a big responsibility. Not only the best way should be chosen for the transaction, but also the payment must be regarded carefully for the security matters. This article is dedicated to how to transfer a large amount of money online.

Ways to remit a large amount of money

Every merchant at some point in the business development faces the question: “How to transfer a large amount of money?”. Luckily this problem equally touches everyone, and so there are a lot of remitting options out there. But before diving into ways of transferring a large amount of money, we would like to start with things that must be verified and compared while making a transfer. 

4 things to verify when transferring a large amount online:

  • Exchange rate. An exchange rate plays quite a big role in transferring large amounts. We recommend checking the exchange rate type carefully and calculate the transfer.
  • Fees. Fees are unavoidable. But they can vary much depending on the banking offer. Charges can be fixed. Thus, a merchant is to pay a certain shown amount no matter the transaction value. And charges can be proportional or include some additional fees. Which is a merchant’s job to clarify.
  • Delivery period. The delivery factor means when the recipient will have money in the wallet. When transferring a large amount of money, the delivery time can be instant, take a couple of hours, or several days. 
  • Amount limit. Amount limit refers to the maximum transfer sum to send online at once. This limit might not be a factor to consider during daily business expenses. But when sending large sums, the amount limit comes in handy.

Wire transfer

A wire transfer is an electronic relocation of money through a banking network. A banking network includes a wide list of financial institutions globally, and it is governed and managed by these institutions. The transfer can be done in cash at the dedicated cash office. 

When performing a wire transfer, no physical money is being involved in the internal network transmission. Instead, the data is transmitted between financial institutions regarding the recipient, the bank receiver, a personal account number, and the actual amount transferred.

Foreign currency check

Using checks in transferring big amounts of money is another option that can suit a merchant. A valid check is a financial document. It obligates a financial institution to pay off a certain amount of funds from an account of a merchant to the person for whom the cheque has been issued by name.

A check is usually long to proceed for the financial institution due to verification of the available funds on the merchant account. In some cases, the procedure can take up to 20 business days.

Correspondent banks

A correspondent bank is a financial institution that offers financial services to another financial organization. A correspondent bank is mostly utilized for international transfers, behaving as a mediator or manager within the internal networks. A correspondent bank is responsible for the establishment of wire transfers, performing business transactions, accepting deposits, and collecting documents on behalf of financial institutions. 

Domestic financial institutions often require correspondent banks to perform transactions that start or would be accomplished in foreign countries on their behalf. Domestic financial institutions benefit from correspondent bank networks using access to foreign financial markets and potential target audiences. 

Online transfers

Online money transfer is the electronic transfer of funds from one financial account to another. Online transfers can be conducted both within one financial institution or through banking networks within another one. An online transfer is currently one of the fastest ways to transmit money from a merchant to a receiver.

Ways to secure big money transfers

According to Statista, the total value of remittances will rise from 613 billion American Dollars in 2017 to $750 billion in 2023. And as Kbv research claims, by 2026 this number will grow even more. The predicted growth of the Digital Remittance Market is $33.9 billion. Now that we have explained the ways on how to transfer a large amount of money and why it is so important for future businesses, let’s talk about security. 

Identification and access control

Identification and access control are essential for secure transaction performance. Any step of the payment processing must be well-protected. To do so, we recommend choosing wisely third-party partners that are responsible for the transaction flow. If you need a better hint, here is an article: “Are you using the right merchant services provider?”.

Besides that, here are some general recommendations to follow:

  • Apply a multi-tier process of the customers or recipient identification;
  • Perform multiple security checkups at every step of the transaction process;
  • Verify refunds and chargebacks;
  • Imply address verification or phone number confirmation;
  • Implement digital signatures.

Applicable standards

International standards and compliances are trustable sources guided by international regulations. Three massive compliances govern internationally. 

The first one is the General Data Protection Regulation (GDPR) that dictates the privacy of EU citizens. 

The second one is the Payment Card Industry Data Security Standard (PCI DSS), which regulates the payment process in the world. 

And the third one is the Second Payment Services Directive (PSD2), which protects the cardholder’s data around the globe.

Specialized fraud prevention strategies

Fraud prevention is a special service that protects the system from fraudulent actions and hacker attacks. The most common fraud in the offline world is the theft of the credit card, while in the online transaction field it is identity theft or data theft. To avoid this fraud, businesses must implement specific tools. 

By the way, if you are looking for fraud protection for your business, we recommend checking out Covery – an AI-powered fraud prevention service Maxpay provides. Covery has all the services necessary to prevent fraudulent transactions and manage risks. More in the article: “Fraud prevention for merchants: protect the payments with tools from Covery”.