How to Send Money to Someone Without a Bank Account

Since most cash transactions are done online today, knowing how to send money to someone without a bank account is essential. Most of these money transfer methods are safe and fast and save you from queueing at a bank. 

Some money transaction methods that don’t require the receiver to have a bank account are using credit or debit cards, money orders, cash, money transfer services, and mobile wallets. You can also pay for services and buy goods using gift cards. 

While choosing the money transfer method to use can be challenging, always consider safety, speed, and convenience. Ensure you also look at the currency conversion rates to save more. If you have been thinking of sending money to someone without a bank account, this guide will help you. 

How to Send Someone Money Without a Bank Account

Many people don’t have bank accounts for various reasons. Some don’t trust banks, and others fail to have accounts because of the minimum balance requirements by banks. Luckily, unlike in the past, you can send money to someone without a bank through these ways;

• Mobile Wallets

Mobile wallets are one of the leading methods of sending money to a recipient without a bank account. Money transfer with this means is fast, secure, and safe. Most mobile wallets do not charge a transfer fee, cutting costs. 

Mobile wallets are also easy to use and available in many countries. Instead of a bank account, mobile wallet providers require you to link your account to your mobile number. Besides doing online transactions, you can purchase items and pay for services using mobile wallets. 

Once you receive money in your wallet, you can withdraw it as cash from an agent. This money transfer method is safe because the payments are encrypted, blocking third parties from accessing them. 

The sender and recipient must have the same service provider to cut costs using mobile wallets. It also makes the money transfer fast. In addition, you can send various currencies using mobile wallets, but you could pay a currency exchange fee depending on their rates. 

• Money Transfer Services

Money transfer services can allow you to send money globally without needing a bank account. The mode of money transfer is convenient, safe, and fast, and you can send money in various currencies. 

When using a money transfer service, you will need the recipient’s name, address, and payment destination. Some standard money transfer services are Remitly, Wise, and Send. These services charge different fees, so compare the charges before choosing a service. 

Also, note that you must adhere to safe money transfer practices. For example, do not use public Wi-Fi to access your money transfer accounts because internet hackers can easily steal your data, including passwords. 

1. Money Orders

Money orders are one of the standard means of money transfer you will see when researching how to send money to someone without a bank account. They look like checks, but the recipient doesn’t need a bank account to deposit the money order. Money orders are also a guaranteed form of payment because they do not bounce. 

You can buy a few money orders from a post office or a bank using a debit card, credit card, or cash. Once you get it, you must write the payee’s name and the issuing institution. Keep the receipt safe for easy tracking if the money order gets lost. 

Although money orders are a preferred means of payment, they have limits. For example, you cannot buy a money order of more than $1000. Also, you must fill out a particular form and show your government-issued ID if you purchase money orders of more than $3000. 

• Gift Cards

Using gift cards, you can send money to an individual without a bank account. These have a Visa or Mastercard logo, and you can get them in various denominations. However, although gift cards are common means of payment, not all stores accept them. Also, gift cards have limited use because you must use them for a specific purpose. 

• Cash

Cash is a common means of money transfer; you don’t require a bank account to send or receive the money. However, sending money in cash is risky. Most of these notes get lost or stolen before reaching the recipient. 

Always use envelopes that provide privacy to ensure safety when sending money in cash. It would be best if you also track your mail parcels, and you can also get insurance for the money. You can send cash through different modes of transport like air, road, or mail parcels. 

• Prepaid Debit Cards

Paid debit cards are a safer way to send money than using cash. You must not have a bank account to have one; they are safe to use when paying for goods and services. 

You can buy prepaid debit cards from retailers, banks, credit card companies, or credit unions. The cash in the prepaid card is usually part of an account held by a bank.

When getting a prepaid debit card, ensure you check all the fees. Some will require you to pay an activation fee for the card and extra fees if you use out-of-network ATMs. In addition, some cards have a limit on how much money you can load, and they have expiration dates.

What to Consider When Selecting a Money Transfer Method

Selecting the best money transfer method can be challenging with the many alternatives available for transferring money without a bank account. 

However, these tips will help you make a sound choice. 

• Check the Security of the Transfer Method

The security of your money should come before the cost and speed of the transfer method. Since most of these money transfer methods rely on the internet, they are more exposed to internet theft. 

For example, using public Wi-Fi to send money increases the chances of cybercrime, where your passwords can be stolen and used to access your account. Therefore, always ensure the transfer method protects you and use a safe internet connection.

• Cost of Money Transfer

When using money transfer methods to transact, you will realize that some are costlier than others. However, most money transfer methods don’t charge fees if the recipient and the sender have the same service provider. 

Some standard fees you will pay when using money transfer methods are foreign currency exchange fees. Instead of incurring high exchange fees, consider exchanging your currency at Knightsbridge FX. We offer more friendly rates than banks and other foreign exchange agencies, and we don’t have hidden fees.

Some transfer methods will also charge a fee depending on the amount of money you transact or the location. Ensure you compare these fees before choosing a method of transfer. 

• Speed of Money Transfer

Although speed should not be the first thing you check in a money transfer method, it matters. Some money transfer methods can take two, three, or five business days to complete the transaction, while e-transfers are instant. 

• Ease of Use

You don’t want to spend hours finding out how a money transfer method works. If you aim to send and receive the cash fast, use an easy-to-use money transfer method. They are less complicated, and you can hardly lose money using them. 

Final Words

Knowing how to send money to someone without a bank account is beneficial, as many people don’t own accounts. You can transact using a money order, prepaid debit cards, mobile wallets, or cash. Compare different money transfer methods to see the fees charged, their security, and their convenience. Finally, consider changing your currency at KFX for fewer costs.