Bank transfer

Bankovní převod stále patří mezi nejpopulárnější způsoby platby na intnernetu (zdroj: pixabay.com)

Bank transfer, the most basic banking tool on which almost all cashless payments are based today. Although fewer and fewer people use this payment method in the context of online payments compared to the past, and it is gradually being replaced by faster and more convenient payment methods, it still finds its customers and uses. Most people encounter bank transfers at least once a month for their salaries, which are most often paid using this tool.

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What is a bank transfer?

A bank transfer, or money transfer, is simply an easy way to transfer money from one account to another, either between individuals or different institutions. It is predominantly a completely cashless process, but it is still possible to transfer money using cash today, where you must go to the bank, deposit money at the counter, and report the bank account details to which you are sending the money, and the bank will then send the money for you. Although it is not the fastest or most convenient method, it is still used quite frequently, especially in one of its forms, which is the so-called direct debit. The second option for a bank transfer is called a standing order. These two types of bank transfers mainly differ in who makes the payment, that is, who initiates the payment, the sender, or the recipient.

Standing order

If you decide to deposit money into your gaming account at an online casino and choose a bank transfer as the payment method, then you are using a standing order. This type is initiated by the sender of the payment, in this case, you. This is the most widely used form of bank transfer today. A standing order is a bank transfer that you can easily handle by filling out a form for domestic or international payment. It depends on the currency or the country to which you want to send the payment. You can fill out the form either electronically in online banking or in the mobile application offered by your bank or manually at the branch. In most cases, it is better to choose an electronic form because it is much more convenient and also advantageous. For processing a paper form for a bank transfer at the branch, a fee is usually charged, which you can easily avoid by sending it from online banking. If you choose to submit the form electronically, filling it out is not difficult. In the case of a domestic payment (payment to an account in the Czech Republic), you only need to know the recipient’s account number, the amount you want to pay, and the due date. Optionally, variable, specific, or constant symbol if the recipient requires them. You often encounter this when sending money to certain institutions, for example, if you are paying for a child’s school trip. What are these symbols for? The first two symbols are used to identify you and to recognize specific payments. Some institutions receive payments from thousands of clients. The constant symbol serves for accounting identification of the payment. Today, you no longer need to enter it for payment. For each payment, you can add a short message for the recipient, e.g., school trip payment, your name, and more.

Direct debit

The opposite is the type of bank transfer called a direct debit, which is initiated not by the sender but by the recipient of the payment. The direct debit process involves three main parties: the direct debit payer, their bank, and the direct debit recipient, called the originator in banking jargon. The originator must give their consent to create the direct debit and set it up either through online banking or personally at the bank branch. For a direct debit, the payment frequency, the account to which the payment is to be sent, and the maximum payment limit are set. The process is then as follows: the recipient’s bank sends a request to the sender’s bank (the originator) to transfer a certain amount of money. The money is then sent by the bank automatically at agreed intervals without further confirmation. This type is most commonly used for recurring payments, especially for payments to institutions for various services. Direct debit is mainly used for monthly payments, but you can use this order for other than monthly intervals. One of the most precise examples is the payment of energy advances, which you send to the institution repeatedly every month, always for the same amount. However, a direct debit does not necessarily have to take place between you and a larger company; you can use it to pay rent or regularly save to an investment fund. A direct debit makes life easier for its users by eliminating the need to repeatedly enter the recipient’s account information. The advantage is also that you do not have to monitor whether you have forgotten to pay an important monthly expense. On the other hand, the disadvantage is that you lose some control over sent payments if you have been making some payments for a long time since you are not the one who initiates the payments. With manual input, you have much higher control over sent payments. The use of a direct debit is up to you. For us, however, it is a great helper.

How long does a bank transfer take?

The most common and fastest way for bank transfers to occur today is by submitting the payment electronically. Through online banking or your bank’s mobile application. Nowadays, a bank transfer can almost be instantaneous, but it is not unusual for a bank transfer to take several working days. Your bank also plays an important role because each bank has different conditions and rules for how long a bank transfer to another bank account takes. Besides the bank, other aspects affect the speed of your bank transfer. These include the type of transfer, the method of submission, the sending and receiving country, the currency in which the transaction is conducted, and specific banking policies. We will look at two probable scenarios that may occur when making a payment.

1. Bank transfer within the Czech Republic to another bank account: In the Czech Republic, bank transfers between different banks usually take about one working day from the request for the transaction. However, if you submit the payment on Friday in the evening, the transfer may take several days. On the other hand, if you send your transfer request on a working day before a certain hour (usually before 14:15), your funds may be sent to another bank account on the same day.
2. Bank transfer within the Czech Republic to the same bank account: If you send a payment to an account held by the same bank as your account, the transfer is almost instantaneous, taking just a few seconds.
3. International bank transfer: If you decide to send a payment to an account that is not held in the Czech Republic, the transfer speed is very different. If you send a payment in euros to an account held in a country within the European Economic Area, the payment will be made no later than one working day after the due date. If you send a payment outside this area, standard international transfers take up to 3 working days. However, there are faster options, such as express and urgent transfers. With these payments, even if they are outside the EEA, the payments are sent the next working day or even the same payment day.

When paying using a classic bank transfer, it is sometimes necessary to plan such a payment and pay in advance depending on the specific policies and procedures of your bank to ensure that your payment is credited to the recipient’s account on time.

How does a bank transfer work?

The process of a bank or money transfer consists of several steps and works to transfer capital between accounts of either individuals or legal entities. The entire process of a bank transfer starts with the user who needs to pay for services, goods, or just wants to send money to someone else. As described above in the article, the process for the user works as follows. First, you must give a payment order, and you have several options for submitting it. The most common today is to create an order in online banking or in the banking application. Another option, if you do not have online banking, is to stop by your bank branch and fill out a form called “Payment Order”. Whether you use the first or second option, you will always need to provide the same information: account number, amount (you want to send), transaction currency, and due date. Less commonly, recipient information and bank name are required. When paying at the branch by filling out the form, your signature is also required. For international payments, you need to provide the IBAN and SWIFT/BIC code. Some Czech banks now also offer to simplify and shorten the entire process through payments to a phone number, where you only need to enter the recipient’s phone number and confirm. Now, how does the bank transfer process work from the bank’s perspective? The first step is the receipt of the payment order. The bank receives the order from the client either electronically, at the branch, or by phone. Then follows the verification of data. It must be verified whether the client has sufficient funds in their account, and the correctness of the entered recipient information is also verified. After verifying the data, the processing of the transfer takes place. In this step, the bank usually takes a certain amount of time to process the payment. The sender’s bank must communicate with the recipient’s bank and check that everything is in order. Transfers between different banks usually take longer because it is necessary to use interbank systems or payment networks such as SWIFT for international payments. After successful verification and processing, the step of deduction and crediting the amount comes. If all previous steps have been completed correctly, the funds are deducted from the sender’s account and credited to the recipient’s account. The final step is the recording of the transaction and providing confirmation, where the payment is recorded in the systems of both banks, and they then provide confirmation of the completed transaction to both parties.

History of bank transfers

Have you ever wondered when and where bank transfers first appeared? If you have ever been bothered by a similar question, you will find the answer in this paragraph. Historians claim that the first financial institutions resembling banks as we know them today appeared in ancient cultures around 3,000 BC and that the first loans appeared a thousand years later in Babylon and Egypt. However, we will skip this period of trading in grain, goats, and other domestic animals and move much closer to our present in history. For the first cashless transfers, we need to move to the 19th century when such transfers were enabled mainly by the invention and spread of the telegraph network. It enabled quick and reliable transmission of information. Although it was still a chain where cash appeared at both ends, it was a very effective way to transfer money. The recipient could collect the money shortly after the sender deposited the cash at the bank branch.

When and where can you use a bank transfer?

A bank transfer still has many uses. Although it is no longer used for payments for goods, and faster and easier tools are now available for online payments for services. There are still situations where you will use a classic bank transfer. The simplest and most common example is when you need to transfer money to one of your relatives. In such a case, a bank transfer is still useful, and if you have online banking, it is also a very convenient way to make such a payment. Another way in which a bank transfer is still a very effective financial tool that significantly facilitates your life is the so-called direct debit. Direct debit is described in more depth above in the article. It helps you deal with recurring payments, which most often occur in monthly intervals, without having to enter the payments manually each time. The entire process is automated by a direct debit order, and the bank, with your consent, sends the payments for you.

Online bookmakers and casinos that accept bank transfers

Classic bank transfers are among the oldest financial tools and are also the first payment method on the internet. Due to their rich history and reliability, most online casinos and bookmakers still offer this payment method despite the existence of faster payment methods. For this reason, you will encounter bank transfers mainly with established and larger companies. However, younger, fast-growing companies are also beginning to appear, which no longer offer this payment method through classic bank transfers. One such company is CSGOPositive. Although the last sentences do not sound very positive, do not be misled, it is still a widely used payment method that is accepted by most online casinos and bookmakers, and it is still a challenging task to find those that do not accept this payment method. Here are some of the Czech online casinos that still support bank transfer payments:

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How to pay by bank transfer when playing online?

If you decide to top up your gaming account at one of the online bookmakers or casinos that still accept classic bank transfers, it is definitely better to have online banking set up, which will simplify the entire process many times over. A simple way to do this can be found here:

1. Go to the website where you want to play.
2. Log in to your gaming account.
3. Go to the deposit section.
4. Select bank transfer as the payment method.
5. The bookmaker/casino will then provide you with the necessary details for the bank transfer and a variable symbol that will serve to recognize your payment.
6. Now log in to your online banking.
7. Click on the new payment button.
8. Enter the bank details and the variable symbol.
9. Check that the details you entered are correct and confirm the payment.
10. The payment will be processed and the funds credited to your gaming account.

Security and bank transfer

The security of electronic bank transfers in the online space is at a very high level. And if you pay on reputable e-shops with established merchants, you have nothing to worry about. The only phase of such payments where an error can occur is incorrect entry of data when filling in the details. If it is just an incorrectly entered variable symbol for the recipient, the solution is relatively easy. But you must immediately notify the e-shop that such a situation has occurred and promptly identify the payment. A bigger problem can be if you write the wrong account number or bank code. If you manage to enter a non-existent account number, nothing happens, and the money will simply be returned to you with a notification that the account does not exist. If you send money to another account, the owner of the other account should return the money to you. In such a case, always contact your bank, and if the money is not returned, the bank will pursue it for you.

Fees for using bank transfers

This usually no longer happens, but you can still encounter fees for using bank transfers. It is always important to check the conditions of your bank. As for fees for SEPA payments, such payments should be charged the same as regular domestic payments according to European Union regulations. However, Czech banks set their own exchange rate for payments involving the EUR-CZK conversion, which usually includes a 2% surcharge.

Bank transfer limits

Bank transfer limits in the Czech Republic vary depending on the method of transfer and the specific banking institution. Generally, most limits are set by you for security reasons in case of unauthorized use of your bank account. However, the limit for online banking is generally set at 10,000 crowns for an individual payment. If you use the application offered by your bank, you can change the limit as needed.

Rating

This is the oldest and very widespread payment method that still finds its use, where it will be very effective. One such use is direct debit, where we believe that using a bank transfer makes sense. For online payments, especially with bookmakers and online casinos, where a person needs their money quickly and preferably immediately, we see room for using other payment methods. In terms of anonymity, we also do not rate the classic bank transfer positively, as a person can achieve greater anonymity by using, for example, electronic wallets (Skrill, Neteller, PayPal,…). In terms of speed, we would rather recommend payments by payment card. Our rating is neutral. In our opinion, bank transfer payments bring many advantages but also significant disadvantages, such as lack of anonymity, slow payments, and complexity of payments, which are already overcome by other methods.

Michael Cermak

Article author – expert on bookmakers Follow me: LinkedIn | Facebook E-mail: michael@slothbet.com I started gaining experience in sports betting through my work in the customer support of a foreign bookmaker. It didn't take long before I started betting actively myself. This has continued to this day. Besides thematic articles, I look for interesting bonus offers and valuable odds for you. You can find all articles here. About us | Contact and cooperation