As there are various options for fund transfer, there are many options available for receiving money too. In addition to keeping factors like cost and speed of transaction in mind, you should choose an option that is most convenient and suitable for the receiver.
Direct Deposit in the Bank Account
The most convenient way for a person to receive money is direct deposit to the recipient’s bank account. This can be done via online transfer or wire transfer. Many banks have money transfer bank partners, and if the recipient has a bank account with any of these banks, the sender can directly send the money to recipient’s account. The sender has to give the account number and the SWIFT (Society For Worldwide Interbank Financial Telecommunications) code , IFSC (Indian Financial System Code) or IBAN (International Bank Account Number) number of the recipient’s bank before sending the money. This mode of transfer usually takes 2-3 business days.
The money can also be received in cash by the recipient. Institutions like Western Union provide special services where the recipient can pick up the funds in cash from an agent location. The recipient has to carry a government-issued photo ID and tracking number given by the sender to pick up the cash.
Bank Check/Demand Draft
The money can also be sent in the form of bank demand drafts and checks. The recipient can cash it later on. The bank draft or check can be sent directly to the recipient’s home address.
This is the best option if the recipient does not have a bank account or lives in a remote place. The money order can be delivered directly to the recipient’s local address or agent location.
Before zeroing in on any option of receiving money, be aware if the receiver needs to pay any fee to avail the service. Some money transfer services require the receiver to pay service charges. But as mentioned in the beginning, the ease and convenience of the receiver should be given prime importance.