Bank Transfers: What They Are and How to Do Them

Bank Transfers: What They Are and How to Do Them
For business owners, moving money quickly to your bank account can make the difference in paying your bills on time or not. What is a bank transfer? Are there limits? How do you transfer money from one bank account to another?
by Deborah Findling Jun 08, 2022 — 3 min read
Bank Transfers: What They Are and How to Do Them

For business owners, moving money quickly to your bank account can make the difference in paying your bills on time or not. What is a bank transfer? Are there limits? How do you transfer money from one bank account to another?

What is a bank transfer?

A bank transfer is a payment method that allows consumers and business owners to transfer money to a bank account. You can use bank transfers to move around funds, accept payments from a customer, pay GST and pay suppliers.

If you use Square for your business, there are several types of transfers available:

Standard next day transfer: When you activate your Square Point of Sale account, link a bank account and start accepting payments with the free automatic transfers option, your funds will automatically send each evening—including Friday through Sunday—and will arrive in your linked bank account the next day.

Instant transfer: If instant transfers are available on your account, you can send funds to your linked, external bank account 24 hours a day, seven days a week, for a 1.5% fee per transfer. These transfers can be as little as $5 and transfers of up to $5,000 can be sent. Instant transfers can be made as soon as you make a sale. This means that you can get immediate access to your funds.

Custom close of day: Custom close of day transfers are also available for free per transfer, COD transfers are available to automatically transfer your funds at close of day on an automated schedule you choose.

Manual transfers: By default, your funds will be transferred to your bank account every night, including weekends. Instead of automatic transfers, you can select manual transfers to choose when to transfer your money. Your funds will be available in your Square balance and you can decide when to manually transfer them to your linked bank account. Your funds will then arrive in your bank account the next day—at no extra cost.

Custom close of day: If your business has unique hours, you can customise the time you’d like transactions grouped for automatic transfer. This time is called your close of day. Setting a close of day time ensures you’ll receive a single transfer for a full day of payment activity – making bookkeeping a breeze.

Manual transfers: By default, your funds will be transferred to your bank account every night, including weekends. Instead of automatic transfers, you can select manual transfers to choose when to transfer your money. Your funds will be available in your Square balance and you can decide when to manually transfer them to your linked bank account. Your funds will then arrive in your bank account the next day—at no extra cost.

Custom close of day: If your business has unique hours, you can customise the time you’d like transactions grouped for automatic transfer. This time is called your close of day. Setting a close of day time ensures you’ll receive a single transfer for a full day of payment activity – making bookkeeping a breeze.

Type of transfer Transfer limit Speed of transfer
Standard next business day None Next day (excluding national public holidays)
Instant transfer Up to $5,000 Instantly 24 hours a day, 7 days a week.

What is the difference between a bank transfer and an Osko payment?

While bank transfers and Osko payments are both types of electronic funds transfers (EFT), they do have some key differences. Osko by BPAY offers consumers the ability to transfer funds almost instantly from one bank to another. Whereas standard bank transfers between different financial institutions can take some time to clear.

Is a bank transfer secure?

Bank transfers are considered a safe and secure method of payment, as there is proven identity verification associated with the transfer itself. However, it is critical with both bank transfers and Osko payments to ensure you know who you are sending the money to. Whether you are initiating a bank transfer to an external bank account or a different account within your own, double check the name of the recipient. Once a transfer is initiated it cannot be canceled. Transferring funds to a bank account in cash form includes the steps for transporting money yourself and any security risks involved with physically moving that money from one location to another.

Instant transfers require a linked, eligible bank account and cost a fee per transfer. Funds are subject to your bank’s availability schedule. Up to $5,000 AUD per day. The minimum you can transfer is $5. Terms of Service apply.

Deborah Findling
Deborah Findling is an editor at Square, where she writes about investment, finance, accounting and other existing and emerging payment methods and technologies.

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