Value transfer system: Encyclopedia - Value transfer system

Value transfer system

A value transfer system refers to any system, mechanism, or network of people that receives money for the purpose of making the funds or an equivalent value payable to a third party in another geographic location, whether or not in the same form.

A value transfer system may fall into one or more of these groups:

• Informal value transfer systems, e.g. hawala.

• Retail value transfer systems:
  • Traditional retail value transfer systems, e.g. Western Union. (Also, banks and post offices usually support various forms of transferring funds.)
  • Internet-only value transfer systems, e.g. PayPal, xchangeAGENT,or Electronic money.

• Institutional formal value transfer systems, e.g. SWIFT.

Adapted from the Wikipedia article "Value transfer system", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki