91–100 of 109 posts
Why does it need to be connected to your bank at all? It just needs the account, routing, and check numbers. I can order paper checks with arbitrary account and routing numbers on them. Also, for people with printers: checks don’t need to be with special ink or on special paper.
> Why does it need to be connected to your bank at all? It just needs the account, routing, and check numbers. To prevent fraud
Your bank doesn't do this for free? Mine does (USAA).
$6.99 per check? That's expensive! I have envelopes. I have stamps. And I have a checkbook. The only thing this is saving me is the (minor) physical labor? Not worth $6.99 per month. More for the times I have to write checks for other things (e.g. paying contractors). Besides, when I bought my house I bought one of those 300 address label sticker thingies. How else am I going to use those?!
Yup our target market is for people who are busy and want instant gratification that something got done. Envelopes, checks, postage, gas / your time trip to the post office - agreed isn’t a lot of money probably about $3 + your time.
> Envelopes, checks, postage, gas / your time trip to the post office - agreed isn’t a lot of money probably about $3 + your time.
Less. Gas is not a factor. Envelopes are at the grocery store, which I'm going to go to any way. Postage is sold at Costco, so that's not really extra. And the mailbox is right where I live. The time to get to the mailbox doesn't count as, well, I do need to check my mail anyway. So really, the only time spent is:
1. Finding the items at the stores I already shop at.
2. Write the check.
3. Apply the stamp.
I see you are using Plaid for Bank integration. The last time I checked Plaid , there were security issues with regards to how it handled passwords by copying Bank login screens. I believe TD was suing Plaid for this reason. I wish you best of luck but I avoid any service that uses Plaid.
How common is check usage in the USA? Is it a daily/weekly/monthly/quarterly thing?
Pretty much everything is done through electronic transfers - either Direct Debits, which occur on a regular (usually monthly) basis, or ad-hoc payments a straightforward transfer which are rated to go through within a few hours, but which usually happens within 1 minute.
Does anyone know what conditions need to be in place for this level of convenience to take place?
It does mean we're liable to pesky IT issues though: https://www.bbc.co.uk/news/articles/cd9qzg92g72o
Why does it need to be connected to your bank at all? It just needs the account, routing, and check numbers. I can order paper checks with arbitrary account and routing numbers on them. Also, for people with printers: checks don’t need to be with special ink or on special paper.
> Why does it need to be connected to your bank at all? It just needs the account, routing, and check numbers. To prevent fraud
Your use of Plaid would exclude me from your service for two reasons:
1: I bank at a small regional credit union that is almost impossible to get linked with Plaid.
2: Plaid hypothetically lets you do a lot more than just learn my account and routing number. I would not trust a new start up with that level of access.
Given that relatively few things require the MICR numbers to be printed with magnetized ink anymore, it’s not clear what fraud someone could commit with your service that they couldn’t commit just as easily commit in a dozen different ways and that we can’t really prevent without a systematic overhaul of the paper check system
How common is check usage in the USA? Is it a daily/weekly/monthly/quarterly thing?
Furthermore, all electronic payment systems in the US are either operated by for-profit companies (VISA, Venmo), or are not available to consumers for one off transactions (ACH).
The result is that for many circumstances, paper checks are the cheapest way to move money around, even after accounting for their credit and fraud risks.
I write paper checks for:
• municipal utilities that either don’t accept electronic payment, or have a surcharge for electronic payment that exceeds my costs for writing checks.
• services provided by individuals or sometimes small businesses. While these sorts of people accept Venmo and their competitors more often than they used to, many of them still prefer a check.
• quarterly state and federal tax payments. While these guys accept EFT, the websites are terrible so it’s usually a better use of my time to mail a check.
• anybody who will give me a greater than 1.5% discount for paying by check rather than credit card. Contractors and small medical offices fall into this category most often. But sometimes also local shops for large ticket purchases.
Earlier quoted context omitted.
Have you ever lost a bill pay check or have someone follow up and say they didn’t receive it? With BillPay, they deduct the amount you pay on the day of, the banks take their sweet time to send the check because they want to slow down the money. If you lose the check, it’s a lot more overhead to cancel and get your money back.
My bank does not take the money out before it's cashed by the receiver
I join my dad occasionally to watch the lakers games on tv. Recently he had his bills set up and was writing checks and placing them in envelopes. I remembered specifically helping him resolve a bill pay issue for one of his payments so I asked why doesn't he use bill pay for all of them? He says he likes practicing writing, the physical nature, and the routine of intaking these bills and mailing them out. he's retir…
What we found was bill pay is a lot slower and doesn’t give you any indication of if and when the check is cashed because they deduct that amount on the day you send. So that might be another reason your dad might be doing this.
Use a less shitty bank. For any reputable bank if the payment is made my paper mailed check the money is withdrawn only when the check is cashed.
Not to rain on your parade, but my Chase app already has this ability. Don’t other banks as well? Whats the upside of this option?
Have you ever lost a bill pay check or have someone follow up and say they didn’t receive it? With BillPay, they deduct the amount you pay on the day of, the banks take their sweet time to send the check because they want to slow down the money. If you lose the check, it’s a lot more overhead to cancel and get your money back.
Maybe some shit banks, but a decent bank like Ally will try to have the check delivered by the due date chosen (mailing out a few days prior). There isn’t much money to be made this way. If you knew they were always late you’d just adjust the date back anyway. Decent banks don’t play petty games like this.
For electronic payments the money is withdrawn similar to an ACH, for paper checks any reputable bank will withdraw the money only when the check is cashed.