There are five different types of money services: check, draft, transfer, order, and wire. All five methods are used to move money from one bank account to another. These types of money services are available around the world and form the primary function of consumer banks.
A check is a paper note issued by the bank account holder to another party. This can be a person or a business. The check can have a wide range of designs and colors, but must include basic information that is required to complete the transaction.
The check must provide the name, address, date, the payee name, and the full amount to be transferred. All checks require the signature of the bank account holder. The check number, bank account, bank identifier and branch number are all required. This information is preprinted on the bottom of the check, and is formatted according to the rules of the country’s banking institution.
A draft is issued by the bank on request of the account holder. The details required are the same as those for a check, but there are two major differences. A draft can be issued in a foreign currency and will be honored by an unrelated bank in another country. The funds for the draft are withdrawn from the bank account at the time the draft is issued.
The money transfer is one of the most commonly used money services in Europe. Funds are moved within the banking system from one account to another. The recipient requires no paper documents, as the sender is responsible for creating the transfer from their bank. The only information required is the bank account and bank identification numbers.
A money order is available from a wide range of companies outside the banking services. The funds are paid to the money order company, who issues a paper document with the full amount, payee, and effective date. The recipient takes the money order and can cash it in at the same company’s storefront, or at their bank.
The money wire transfer is used to quickly transfer funds to a bank account in another country. The banks around the world all subscribe to an old network of money transfers along a secured network. This type of money service can only be accessed from within a bank. Money services are one of the first features of the banking system, and provide a means to safely move money around the world. Always collect the required information in advance and double check the accuracy of the information used to ensure that it is correct.