MBA Germany

Transferring Money


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There is a special way to transfer money in Germany (Überweisung formular).

Transfer Money within Germany

It is advisable to arrange for a standing order ("Dauerauftrag") if you have regularly recurring payments of a set sum, such as rent. The sum can be deducted automatically from your account on an agreed date and transferred to the account of the recipient. The bank will provide you with the necessary form.

A convenient way of payment if you have recurring sums which vary in size (such as the telephone bill or health insurance) is the Direct debit ("Lastschrift"). You give the recipient a direct debit authorization ("Einzugsermächtigung") which authorises them to deduct the respective amounts from your account. Of course, you can always cancel the authorization and stop the direct debit. This method of payment may be new to you and you may be suspicious that it could be open to abuse. However, all direct debits are registered on your bank statement so that you can, and should, check them and revoke any incorrect debits.

International money transfers

The money transfers in Germany are usually quite fast and direct, but this is not always the case for international money transfers since they can take some weeks, especially between non-affiliated banks.

You might consider these alternative transfer methods:
SWIFT transfers
One of the safest and fastest methods of transferring money is via the system of the Society of Worldwide Interbank Financial Telecommunication (SWIFT). The process of SWIFT transfer normally terminates in a few hours and the funds should be available within 24 hours, although this can take longer. Transfer costs vary in terms of commission, exchange rates and transfer charges.

Bank drafts
Bank drafts are not treated as cash in Germany and must be cleared like personal cheques. A bank draft (Bankscheck) should be sent by registered post as it is impossible to stop payment if it gets lost or stolen.

Money transfer agencies
Another way of transferring money abroad is to use an international money transfer agent such as Moneygram or Western Union; this is implemented for people that do not have a bank accounts, these agencies are generally faster than banks (transfer takes around 10 minutes) and more reliable than traditional bank transfers. However, it is a little expensive, commissions on telegraphic transfers are quite high (around 7 to 10 percent of the amount sent). You simply bring pay your money in cash to the agency office and tell them where the person you are sending it to will pick it up. The recipient of the money can then go with his identification to the office you named and receive the money instantly in cash.

You may like to take a look at the Paypal system. Paypal enables any individual or business with an email address to securely, easily and quickly send and receive payments online. PayPal's service builds on the existing financial infrastructure of bank accounts and credit cards and uses the world's most advanced proprietary fraud prevention systems to create a safe, global, real-time payment solution.

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Money and Finance in Germany
MBA Germany