Yahoo Finance The One Important iBanking Service You’re Probably NOT Using
Most of us dread the idea of having to walk into any of our bank’s branch offices for one reason – the wait. You’ll either need to get behind a lengthy queue, or take a ticket and sit in the reception area. Oh wait, that’s if you’re lucky enough to find a seat.
Brace yourself for some serious queuing!
Thankfully, online banking makes it easier for you complete 90% of your banking errands without having to visit a bank. You can make General Interbank Recurring Order (GIRO) transfers, pay your credit card bills, or even remit money to relatives overseas – all from the comfort of home.
That’s great! But you’re probably neglecting one important iBanking service that completes these tasks faster and cheaper than your bank will.
Visa Personal Payments (VPP)
You’ve probably seen Visa Personal Payments (VPP) listed as one of the services on your iBanking account, but chose never to click on it. Maybe that’s because you had no idea what VPP was. That’s OK, being cautious is a good thing.
In short, VPP is a way to electronically transfer funds from your bank account to VISA cardholders (Credit/Debit accounts) with over 100 financial institutions in 20 countries around the world. All you need is your recipient’s name and 16-digit VISA card number.
You can use VPP if you have a Singapore iBanking account with the following banks:
The Development Bank of Singapore Limited (DBS)
Oversea-Chinese Banking Corporation (OCBC)
Standard Chartered Bank (SCB)
Malayan Banking Berhad (Maybank)
VPP has actually been around for almost six years as a way to make credit card payments. But it wasn’t until 2013 (after PayPal stopped personal payment services) that VPP also allowed for peer-to-peer payments (P2P). According to VISA, P2P transactions have increased by 185% from January 2013 to January 2014.
There are three major reasons why VPP has increased in popularity in Singapore:
1. VPP Makes It Easier to Pay Your Credit Card Bills (Both Domestic AND Overseas)
When you make a credit card payment, it normally takes about 1-2 days for it to process. If you make a payment on the evening of the day its due, you’re probably going to be charges a late payment fee. That or you’re going to spend time begging your bank to waive the fee.
Here’s how using VPP to make your VISA credit card payments benefits you:
Less Waiting Time for Payment Processing: Your credit card payments process in near real-time instead of 1-2 days.
Less Hassle When Making Payments for Overseas Cards (Expats): You can not only make payments on your Singapore credit cards, but on VISA credit cards from your home country as well.
Less Hassle When Making Payments While Overseas: If you’re outside of Singapore for work, holiday or business travel, you can make payments in near real-time with VPP.
2. VPP Makes It Easier to Send Interbank Peer-to-Peer (P2P) Payments
Making interbank transfers to a friend, family member, or merchant is a pain because you must wait 1-2 days for a GIRO transfer to process. Not to mention you have to remember a payee’s name and account number. But with VPP, all you need is the payee’s name and their 16-digit VISA debit/credit number to make a payment in near real-time.
You can make quick and easy P2P payments for everyday purchases such as:
Splitting the Bill with Friends: You can now split the bill with friends for dinner, holiday expenses, or concert tickets without having to dig through your wallet or worry about underpaying/overpaying. With VPP, you can pay your share instantaneously to a VISA debit/credit card.
Making P2P Purchases: Whether you’re shopping online with your favorite blogshop or you’re paying a friend for design work, if they have a VISA debit/credit account, you can make payment in minutes.
Paying Tuition: Whether you’re paying for your child’s tuition or music lessons, VPP helps you transfer funds in near real-time with your computer or Smart phone.
3. VPP Makes It Easier and Cheaper to Remit Money Abroad
You know how expensive and time consuming sending money overseas can be. You need to fill out forms, pay a costly $20 to $95+service fee, and wait 2 to 3 days for the funds to transfer! But if your recipient has a VISA debit or credit card, you can remit money from your computer or Smart phone using VPP.
Even better, the most you’ll need to pay is $5 to $10, depending on the destination. And instead of waiting 2 to 3 days for a bank or remittance service to transfer funds, VPP does it in a matter of minutes for fast funds-enabled banks.
VPP is a great alternative to remittance services, especially if you’re one of the following:
A Singaporean with Children Studying Overseas: You can send cash directly to your child’s VISA debit/credit account to pay for study or living expenses.
A Foreign Professional in Singapore with Family Back Home: You can send cash directly to the VISA debit/credit account of a family member or friend back in your home country.
A Family Member or Friend of an Unfortunate Tourist: You can send cash directly to the VISA debit/credit account of family member or friend overseas who needs emergency cash.
Final Note: The next time you log into your iBanking account to make a credit card payment or make a GIRO transfer, take a few minutes to check out VPP. It might end up saving you more time, hassle, and headaches than you realize.
As for VISA credit cards, if you’re on the lookout for one that provides great benefits, you should definitely check out SmartCredit.sg!
Will you be giving VPP a try to make credit card payments or split the cost of dinner with friends? Tell us about it on Facebook! And to find even more useful information on everything personal finance, visit MoneySmart today!
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