Cheapest ways to send money online

This is a hat tip to my friend Mike who just wrote a great blog post about different alternatives for sending money online. Here are the online services he mentions, some I use while others I have not even heard of:

Costs Notes
Paypal 5/5 3/5 Average fees, Almost everyone has an account
Amazon 4/5 3/5 Free till end of September, same fees as Paypal after that
Obopay 3/5 5/5 Lowest fees of all, not many have an account
MoneyGram 3/5 1/5 Highest fees of all, worldwide reach to many countries
Xoom 3/5 4/5 Fees lower than MoneyGram, limited countries

Paypal is the winner for occasional payments. If you send money to mostly the same people then you should consider Obopay because of the low fees. International transfers - give Xoom a try and only use MoneyGram if Xoom doesn’t send money to the country you need.

Source: What is the best way to send money online? (at Buxr Blog)

See also:

3 Responses to “Cheapest ways to send money online”

  1. 1 Alex Aug 20th, 2009 at 4:02 am

    Never heard about Obopay – thank you :-)
    How about such payment system like UK Moneybookers?

  2. 2 Yan Aug 21st, 2009 at 10:30 am

    I have not used them but I know some who did. Also, check this out:

  3. 3 Alie Sep 2nd, 2009 at 2:23 pm

    Here is another way of determining the costs of sending money to different countries. It’s updated quarterly:

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