In this article, we’re going to look at how to send money to someone without a bank account.
This will include looking at five popular transfer methods without a bank account and three other methods you’ll probably want to avoid.
That said, if the only reason you have to send money to someone without a bank account is that they haven’t been able to open an account yet, we have good news…
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- How to Send Money to Someone Without a Bank Account
- Alternative Ways to Sending Money Without an Account
- Frequently Asked Questions
- Ready to Explore Your Options?
How to Send Money to Someone Without a Bank Account
To send money to someone without a bank account, you may want to consider one of the following transfer methods: money orders, transfer to a digital wallet, using an international transfer service, mailing them a check, or sending them a transfer via cryptocurrency. Each of these options could present a viable solution, depending on the client profiles involved and the amount of money being sent.
Let’s take a closer look at each of these alternative methods for sending money now.
Alternative Ways to Sending Money Without an Account
1. Money Orders
A money order is a certificate of payment that is commonly issued by financial institutions. In practice, money orders allow one individual to send money to another individual in a different location by simply showing up, presenting their ID, and the transfer details.
Before using money orders, we suggest that you confirm the fees that will be charged for each transfer as they can be very high.
2. Online Wallet Money Transfer
Given the increasing adoption of digital wallets like Venmo, CashApp, and PayPal, it’s no surprise that sending money to someone via a digital wallet has made it on this list.
That said, one important consideration when sending via a digital wallet is the foreign exchange rate. This is obviously only relevant if you are sending money to someone in a different country. If that’s the case, then it’s best to confirm foreign exchange rates before sending a transfer as digital wallets tend to charge unattractive exchange rates.
3. International Transfer Services
Unlike digital wallets and money orders, international transfer services are typically cost-effective and offer attractive exchange rates. A popular example of such a service is Wise (formerly TransferWise).
That said, if you or the person you are planning to send money to without a bank account does not already have an account with an international transfer service, it may be challenging to open. This is especially true if the person you are sending money to does not have the supporting documents needed to open a standard bank account, since they are often the same.
4. Transfer Money via Mail by Sending a Check
Sending money via a physical check is another popular option. In fact, it’s one of the best options if the person you are sending money to wants to receive it in cash. As long as the check is not above a certain threshold, they can take it to a bank and request that check be paid in cash.
In most cases, the only time this request is not honored is when the amount is too large, in which case banks like to see the balance deposited into a bank account. On the other hand, if you are sending the check by mail, it can be a long process until the receiving party receives the funds.
5. Cryptocurrency Transaction
Lastly, one other alternative to sending money to someone without a bank account is to send a cryptocurrency transaction. However, it’s important to note that cryptocurrency is still frowned upon by many financial institutions. Likewise, it can be difficult to convert crypto to FIAT currency to use in an everyday setting.
As a result, crypto is typically only suitable for individuals who have a crypto exchange account with a payment card or a for individuals that do not need to spend the funds after they receive them.
6. Prepaid Debit
As a bonus, we thought we would include a brief mention of sending money via a prepaid debit card. Importantly, sending money via a prepaid debit card is not safe. Anyone that receives the debit card will be able to spend the money on the card. Likewise, debit cards are highly susceptible to fraud and theft via card readers. So, if you actually want the person you’re sending money to receive it, you should avoid this option.
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Frequently Asked Questions
Below are three of the most common questions we receive from people looking into how to send money to someone without a bank account. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Can I Send Money to Someone Instantly?
There are a number of ways that you can send money to someone instantly. This includes sending money through money orders, online transfers between banks, cryptocurrency transactions, or using a digital payment option like Venmo, CashApp, PayPal, or even Wise.
Can I Send and Receive Money Without Bank Account?
Yes, you can send and receive money without a bank account by using one of the alternative transfer methods. One popular alternative is sending money orders. Money orders do not require the sender or the recipient to have a bank account. Instead, they allow individuals to send and receive money from authorized agents that work for a money order service, such as MoneyGram or WesternUnion.
Which Wallet Does Not Require Bank Account?
Several digital wallets do not require a bank account. Instead, they allow you to receive and send funds from third parties or send money through a debit or credit card. Examples of such wallets include PayPal and Venmo.
Ready to Explore Your Options?
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