The Bank Drafts vs. Money Orders might be somewhat unclear if an individual does not use either option often. Both are very secure ways of paying for an item or sending money. They are both usually accepted both at home and abroad as valid currency similar to cash. Neither of these means of payment may be cashed by a person other than the individual whose name is on the front. They might seem to have few differences but there may be occasions to prefer one over the other.

Money orders may be issued by the post office and are guaranteed by the postal service. They could be issued by banks as well and the bank stands good for the payment. Both of these forms are paid at the time of issuance and neither is issued in amounts greater than one thousand CAD/USD.

A money order might be purchased from almost any bank or any post office which makes it very convenient to buy. The costs for them vary with the post office according to where it is to be sent and what currency it is sent in. The rates charged by banks are around the same as the post office charges, or sometimes a bit lower and range from 4 to 6 CAD.

Bank drafts are also secured forms of payment which means that the amount is paid before the draft is issued. Canadian teller checks or drafts might be issued in almost any currency a person desires. They are specially watermarked, printed with special inks and have other security measures to discourage counterfeits much in the same way currency is protected.

The cost of a draft from a bank is similar to that of the money order. A draft however, can be issued in amounts greater than one thousand dollars. This may be particularly useful when money of a larger amount must be sent to another location.

Both of these means of payment are much more secure ways to pay or send money. They can only be cashed by the person whose name is on the draft or money order, whereas cash can be used by anyone if the payment is waylaid or misplaced. If either of these has gone astray then it might be replaced, but this depends on the circumstances.

Both methods are secure and are recognized both home and abroad and often treated the same way currency would be. Both of these methods of payment are readily available in multiple locations and inexpensive. The draft is perfect for when amounts over one thousand dollars must be sent. Both have a purpose and fulfill it admirably. The purpose is to ensure the funds arrive to the designated person safely.

As we speak, credit cards companies are working to expand their service when it comes to transferring money. Many notable credit card companies have started using pre-paid credit cards to make it possible for consumers to wire money online.

The model looks like this; The sender simply goes online to open an account, then inputs the amount and the recipient . The company sends the recipient a pre-paid credit card and secret PIN which may be used as any conventional credit card, at any ATM, or for any kind of purchase they would like. If the sender wishes to transfer more money they simply go online, and the money goes right onto the card the recipient is already in possession of.

Could it be? Have we seen the day consumers no longer need to carry cash? Some businesses are already trying to do away with traditional paychecks, so people have began to get their paychecks wired directly into bank accounts. Many businesses are also taking advantage of online companies to pay employees.

So what does all this mean for standard money transfer services? Many experts have determined the number of people using credit cards or the internet to transfer money will surely increase.

Many location based-services have come to grips with the fact that their market share will dwindle over the years as more people turn to credit cards to transfer money online. To take a stand, many location based companies have gotten in with big-name banks and it is guessed that by the end of 2009, most of these companies will be offering services though those banks. And although most banks already have a transfer system set, this move might possibly be the swaying factor that keeps those businesses afloat.

The model for these companies is simple. If you decide on using a bank to wire money you will pay a flat rate whether you choose to send $100 or $1000. Location-based services charge depending on the amount.

So why would anyone choose to use a location-based company as opposed to a bank? Well location-based services now allow a sender to wire the money to a specific, whereas a bank only allows you to transfer money from one bank account to another.

Regardless of how the money transfer world fluctuates in the coming years, two things are clear; it will gradually become easier to use a credit card to wire money online and the time it takes to get that money sent will only be truncated.