You can send money online in minutes using a peer-to-peer payment app, a bank transfer, or a dedicated money transfer service. The best option depends on whether you’re paying a friend across town or sending funds to someone in another country, how fast the money needs to arrive, and how much you’re willing to pay in fees.
Peer-to-Peer Payment Apps
For sending money to friends, family, or anyone else in the U.S., peer-to-peer apps are the fastest and cheapest option. The major players are Venmo, Zelle, Cash App, and PayPal. All four are free to use when you fund a transfer from your bank account or debit card, but each charges a fee (typically around 3%) if you pay with a credit card.
Zelle is built directly into most major bank apps, so you may already have access without downloading anything new. Transfers usually arrive in a minute or two, and there’s no fee regardless of how you pay. The catch is that both you and the recipient need a U.S. bank account linked to Zelle, and daily sending limits vary by bank.
Venmo and Cash App work as standalone apps. You create an account, link a bank account or card, and send money to anyone else on the platform using their username, phone number, or email. Both allow weekly transfers up to tens of thousands of dollars (Venmo’s limit is $60,000 per week), and both charge a small fee if you want an instant transfer to your bank account rather than waiting one to three business days for the standard free transfer.
PayPal works similarly for personal transfers within the U.S. but really stands out when you need to send money internationally, since it operates in over 200 countries. Its fee structure for business transactions is more complex, so if you’re just splitting rent or paying someone back for dinner, one of the simpler apps may be a better fit.
Bank Transfers: ACH and Wire
If you’d rather skip apps altogether, your bank can move money directly to someone else’s account. You’ll need the recipient’s bank name, routing number, and account number. There are two main ways this works.
An ACH transfer (sometimes labeled “external transfer” or “send money” in your online banking portal) is the low-cost option. Most banks offer these for free or for a small fee, and the money typically clears within one to two business days. This is a solid choice for rent payments, repaying a loan from a relative, or any situation where you don’t need the money to arrive within hours.
A wire transfer is faster but more expensive. Domestic wires usually complete within hours the same business day, as long as you initiate the transfer before your bank’s cutoff time, which is often between 2:00 PM and 5:00 PM local time. Requests submitted after the cutoff, or on weekends and holidays, get processed the next business day. Banks typically charge $15 to $35 for a domestic wire, so this method makes the most sense for large, time-sensitive payments like a down payment or closing costs.
Sending Money Internationally
Cross-border transfers add two costs: an upfront fee and an exchange rate markup. The markup is the difference between the mid-market exchange rate (what you’d see on Google) and the rate the service actually gives you. Some providers advertise low fees but make their money on a wide markup, so compare the total cost, not just the stated fee.
Sending an international wire through your bank is the most straightforward option, but it’s also the most expensive. A typical outgoing international wire from a U.S. bank costs about $45, and the exchange rate is rarely competitive.
Online transfer services like Wise, Remitly, and WorldRemit tend to be significantly cheaper. Wise, for example, charges upfront fees that are typically less than 1% of the transfer amount when you fund from a bank account, and it uses exchange rates very close to the mid-market rate. Delivery times vary by destination and payment method, but many transfers arrive within one to two business days, and some corridors offer near-instant delivery.
How to Set Up Your First Transfer
Regardless of which method you choose, the basic steps are similar:
- Create or log into your account. For apps, download and sign up with your email or phone number. For bank transfers, log into your online banking portal.
- Link a funding source. Connect a bank account, debit card, or both. Most services verify your bank account with a small test deposit that takes a day or two.
- Enter the recipient’s details. For apps, this is usually a phone number, email, or username. For bank and wire transfers, you’ll need the recipient’s full name, bank routing number, and account number. International transfers may also require a SWIFT code (a bank identifier used for global transactions).
- Confirm the amount and review fees. The app or bank will show you any fees and the estimated delivery time before you hit send.
- Submit the transfer. Double-check the recipient’s information one more time, then confirm.
Protecting Yourself From Scams
Money sent through payment apps is difficult to recover once it leaves your account. Scammers know this and specifically target peer-to-peer transfers because the transactions are fast and, in most cases, irreversible. The FTC warns that common tactics include fake emergency requests from someone posing as a friend or family member, and messages claiming you’ve won a prize but need to pay fees to collect it.
Before you send anything, verify the recipient’s information carefully. A single wrong digit in a phone number or username sends your money to a stranger. If someone you know sends an unexpected request for money, contact them directly through a separate channel (call them, text them outside the app) to confirm the request is real. Their account may have been compromised.
Enable multi-factor authentication or a PIN on every payment app you use. This adds a second verification step, like a text message code, so that even if someone gets your password, they can’t access your account without that extra layer.
When Transfers Trigger Tax Reporting
Sending money to a friend or family member as a gift or reimbursement doesn’t create a tax obligation. But if you receive payments for goods or services through a platform like Venmo, PayPal, or Cash App, the IRS requires those platforms to report your earnings on Form 1099-K once you exceed $20,000 in gross payments and more than 200 transactions in a calendar year. That income was always taxable, but the 1099-K means the IRS also gets a copy, so make sure your records match. Personal transfers, like splitting a dinner bill, don’t count toward that threshold as long as the payments are properly categorized in the app.