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- Prepaid debit cards or gift cards are easy ways to send money to someone without a bank account.
- You can also easily send money online through a virtual wallet or payment app.
- If you're sending money to someone who is unbanked, pay attention to security and potential limits.
If you need to send money to someone without a bank account, there are easy transaction tools and resources available regardless of a person's banking situation.
Here are five easy tools you can use for sending money. We also included additional resources for unbanked individuals you can share.
Ways to send money to someone without a bank account
1. Prepaid debit cards
According to a 2021 FDIC study, 32.8% of unbanked households commonly use prepaid debit cards. Prepaid debit cards serve as common tool for sending money since they are easily activated and work similarly to regular debit cards.
You can find prepaid debit cards at financial institutions or grocery stores. Be mindful of sign-up fees, monthly fees, and reload fees.
See Insider's best prepaid debit cards>>
2. Money orders
Marguerita Cheng, CFP® professional, RICP, and chief executive officer at Blue Ocean Global Wealth, says you should not send cash through the mail ever. If you are looking for a more traditional way of sending money, Cheng notes you can get a money orderinstead.
Money orders can be purchased from a financial institution or store. There's usually a purchase limit of $1,000 and a small fee under $5.
3. Gift cards
Stores and some financial institutions have gift cards available. You can send money to an unbanked individual in the form of a gift card, but keep in mind that its usage is restricted to a specific purpose.
4. Online payment services
Online payment services offer an easy way to send through your smartphone or computer.
PayPal, Venmo, Western Union, and Cash App are some of the most popular payment services that do not require you to own a bank account to receive money.
If you use a payment app like PayPal, Venmo, or Cash App, your recipient may sign up for the app and link a prepaid debit card.
Meanwhile, Western Union is a money transfer service with more than 42,000 centers across the US and 500,000 locations worldwide. You may send a payment online or through the service app, and your recipient can pick up the money at a location.
Transaction limits for online payment services
You may use this chart to help you if you want to send money through an online payment service:
Payment app | Transaction limits | International fee |
PayPal | $4,000 to $60,000 per single transaction (may only permit $10,000 for a single transaction depending on your balance) | 5% ($0.99 to $4.99) |
Venmo | $299.99 to $60,000 per week | N/A |
Cash app | $1,000 within a 30-day period | None |
Western Union | $3,000 to $50,000 per single transaction | Varies* |
*Western Union fees depend on your payment method (bank account, a Western Union location, or credit card) and the recipient's location.
Payment apps usually allow higher single transaction limits if you verify your account. For example, Venmo has a $299.99 weekly spending limit for people when they first sign up for their accounts. Once the person verifies their account, the transaction limit increases to $60,000 per week.
5. Digital wallets
Digital wallets serve as another online payment tool you can use. Digital wallets are similar to payment apps. You may add payment information to your smartphone or smartwatch through an app. However, digital wallets store methods of payments through a unique process called tokenization, which essentially makes your information more secure.
Some digital wallets are only compatible with specific smartphones. For instance, you'll need to have an Apple device to use Apple Pay.
Transaction limits for digital wallets
Digital wallets have higher transaction limits for verified users. For example, if you have a verified Google Pay account, you may transfer up to $5,000 in a single transaction. Unverified users may only transfer a maximum of $700 in a single transaction.
Digital wallets also often have a weekly rolling limit in addition to single transaction limits. For example, let's say you transferred $1,000 on Apple Pay Monday morning. Your limit will decrease to $19,000 for the rest of the week if you're a verified user. The transaction will reset the following Monday.
| Digital wallet | Maximum single transaction limit | Maximum weekly rolling limit |
Google Pay | $700 to $5,000 | $700 to $20,000 |
Apple Pay | $10,000 | $10,000 |
Sending money to unbanked FAQS
Does Venmo require a bank account?
No, Venmo does not require a bank account. You may link a prepaid debit card or credit card to your Venmo account. Venmo also has a debit card, which you can connect to your Venmo account.
Can you use Cash App without a bank account?
Yes, you can use Cash App without a bank account. You could add a prepaid debit card or credit card. Cash App also offers the Cash Card, which is a free prepaid debit card that you can order through the app. You may also deposit cash at select retailers; you may find retailers available in your area through the app.
Can you use a digital wallet without a bank account?
Yes, you may add prepaid debit cards or credit cards to a digital wallet.
Tips for sending money to someone without a bank account
When sending money to someone without a bank account, Cheng suggests comparing different options to find the best for your situation.
"You have to think about, do you want the fastest, do you want the cheapest, or do you want the safest?" explains Cheng. "Sometimes, if it's speedy, it's gonna cost more. But you also don't want to compromise on security."
If you are sending money abroad, Cheng says you'll want to make sure that you protect yourself and treat security as a top priority.
"The first thing that I did is I made sure that there was security, meaning that if, for whatever reason, this person can't get their money, that the money could be returned to me," adds Cheng.
You'll also want to confirm that your recipient will be the person picking up and cashing in the payment. They may not be able to receive the payment if another person's name is on it or a nickname is used.
Additional resources for unbanked populations
The 2021 FDIC study cited earlier found that some of the most cited reasons for not owning a bank account are because unbanked households do not trust banks or don't believe they can meet the minimum balance requirements to own a bank account.
If you'd also like to help an unbanked person find a bank account, here are a few resources you may share:
- Bank On certified accounts: A Bank On certified account has a minimum opening deposit under of $25, low monthly services, and no overdraft fees.
- Second chance banking: Second chance bank accounts do not review a person's past banking history. These accounts have easy opening requirements and minimal bank fees because they are specifically for people who have struggled to open accounts due to their previous banking history.
- Minority depository institutions: These banks and credit unionsoften notably serve low-income and underserved groups.
- Community development financial institutions: Community development financial institutions are credit unions, banks, or non-profit organizations that also serve low-income and underserved communities.
- Juntos Avanzamos designated institutions: These institutions allow you to open a bank account without a US ID. For example, you may use a foreign passport or Matricula Consular instead.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She edits and writes bank reviews, banking guides, and banking and savings articles for the Personal Finance Insider team. She is also a Certified Educator in Personal Finance (CEPF).Sophia joined Business Insider in July 2021. Sophia is an alumna of California State University Fullerton, where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@businessinsider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services >>Below are links to some of her most popular stories:
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