A Bank Transfer or Instant Bank Wire Transfer is a means by which a consumer
can make transactions for online products and services without having to issue
credit card details. A consumer wishing to use this mode of payment orders
his/her bank to transfer a specified amount of money to an internet merchant so
that he/she can purchase products, services or online casino and other gambling
credits from them.
This payment instruction will include an IBAN and BIC code, which are issued
by the merchant. IBAN stands for International Bank Account Number and BIC is a
Bank Identifier Code. These enable the consumer's banking institution or cash
office to transfer funds to the correct vendor institution. The consumer
bank/cash office then transmits a secure message via a worldwide inter-bank
telecommunications network such as SWIFT or Fedwire, ordering the receiving bank
to effect the payment instruction. Once the recipient of the funds or the
merchant has been advised that the transfer has been successfully concluded, the
transaction is complete and the services, products or gaming credits will be
released to the consumer.
The bank transfer is usually completed anything from several hours to several
days, which might not make it the fastest way to conclude transactions online,
but it is certainly considered the safest. This is because intensive identity
checks are performed by the bank, and wired transfer information is transmitted
through highly encrypted communication devices to protect the consumer against
fraud and identity theft. In addition, this form of payment has no chargebacks.
However, instant bank wires and transfers should only be conducted if the
recipient is trustworthy, as there have been many reported incidences of online
scams, particularly within the internet based auction sector. In these cases,
the recipient collects the money transfer without providing the products or
services the consumer paid for.
Instant bank wire and transfer fees are usually in the region of
£20 for transfers under £10 000, but expedited
transfers (less than 24 Hours) can be billed as high as £40. Foreign exchange
rates also need to be considered when wiring money abroad.
As far as online payment technologies is
concerned, instant bank wires and transfers are certainly the most secure means
of payment delivery (assuming the consumer is dealing with a reputable vendor),
and is a recommendable means of fund transfer for the more cautious internet
spender. However, e-wallet solutions, credit card payments, debit card payments
and pre-paid cards appear to be faster and more convenient, not to mention less
expensive.
