One way that i transfer money from one char to another is i have the char who i want to have the money put up on auction a lv 1 tunic and have my char with the money buy it for the max amount that i want the poor char to have.
Nope, you don't have to lose a lot of money in the process. If I remember correctly, the amount you pay is 1% of MIN bid, not max (not sure tho...) So, all i did was keep 1 jeweled kris from a farming session at bandits to xfer from my main to a new char. And of course, it can work xfering by using some junk weap.