As the name implies, money transfer services offer the facility to transfer money to another person or business which may be on the other side of the globe, usually within minutes. Money would be handled by large international companies which would have their local agents receiving money in cash or instructions to debit a card from remitters in person. Usually, money transfer services do not involve banks and monies are not sent to a bank or deposited into an account.
The person sending the money (“the remitter” or “sender”) needs to provide name and address, the recipient's name, and a designated payment destination. The agent would usually provide the remitter with a 10-digit or similar number that must be transmitted separately by the sender to the recipient. The recipient then goes to his/her agent office in the designated payment location, presents the said number and identification such as passport or ID card for retrieval of funds.
Retrieval is quite easy. However if the recipient lacks the necessary identification documents, the remitter and recipient of the money can usually set up a pre-arranged password or secret question and answer which can be used to release the funds.
Usually, a remitter would need to pay cash to the transfer agent to process a money transfer service. Cheques are not normally accepted. There may be some instances where the agent would not accept payments by card (debit or credit card).
Funds are normally paid out to the recipient in cash, although if payment exceeds a local maximum threshold or cash on hand, a cheque is issued. Thus it is important to check the cash limit at the destination location.