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Venmo can now instantly transfer money to your debit card for 25 cents

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Re: Venmo can now instantly transfer money to your debit card for 25 cents

#61

Post by tonyarkles »

otakucode wrote: post #53
closeparen wrote: post #43

Earlier quoted context omitted.

No, but “write out a paper check and have the other person photograph it with their bank’s app” is still the only universal and free peer to peer electronic payment method in the US. (Cash requires trips to the teller window during banking hours if your transactions are not all multiples of $20).

Will most banks actually allow that? Taking a picture of a personal check and cashing it instantly? In my experience banks treat personal checks like radioactive waste and getting a bank to cash a check as an individual takes some doing. Last time I had a $2600 check I found out that for any check over $2500, I had to physically take it to the bank and they wanted to know why I was receiving the money. Anything that…

In Canada they certainly didn't mind for me. When clients were sending me cheques, I don't think I ever ran into any problems cashing them using the RBC "Photo of a cheque" thing.

I ran into way more difficulties with Quickbooks Payments accepting large credit card transactions. There were invisible thresholds that seemed to trigger Know-Your-Customer (KYC) rules, and the fact that those had been triggered seemed to be opaque to Tier 1 support. As far as everyone I talked to (at both QB and at RBC) the money had vanished into the aether, until a couple days later I got a call from someone in the QB Compliance department who had a few questions.

Re: Venmo can now instantly transfer money to your debit card for 25 cents

#63

Post by jedberg »

vikascoder wrote: post #49
jedberg wrote: post #45

The other day I learned that ACH transfers are going to become same-business-day sometime around April this year. Not quite instant, but a lot better than before. Still doesn't hit the use case of cash on the weekend, but at least now the American banking system is only 20 years behind Europe instead of 50 years...

And in India transfers are instantaneous within banks. Beats me why in the US it takes 3 days.

Because by making it a long time the bank can charge you $45 for a wire transfer, which is instantaneous and can be for any amount.

Re: Venmo can now instantly transfer money to your debit card for 25 cents

#64

Post by ender341341 »

otakucode wrote: post #53
closeparen wrote: post #43

Earlier quoted context omitted.

No, but “write out a paper check and have the other person photograph it with their bank’s app” is still the only universal and free peer to peer electronic payment method in the US. (Cash requires trips to the teller window during banking hours if your transactions are not all multiples of $20).

Will most banks actually allow that? Taking a picture of a personal check and cashing it instantly? In my experience banks treat personal checks like radioactive waste and getting a bank to cash a check as an individual takes some doing. Last time I had a $2600 check I found out that for any check over $2500, I had to physically take it to the bank and they wanted to know why I was receiving the money. Anything that…

Will most banks actually allow that? Taking a picture of a personal check and cashing it instantly?

My small credit union does this. I imagine there's corner cases & limits to how much they'll do instantly without review but it's worked instantly for me so far with several hundred dollars on a check.

Re: Venmo can now instantly transfer money to your debit card for 25 cents

#65

Post by Terretta »

In 10 hours since post, no mention of Apple Pay Cash’s relatively frictionless integration in Messages (iMessage), so adding a link:

https://support.apple.com/en-us/HT207886

There’s no fee to use Apple Pay Cash with a debit card, and it’s as fast as any other text message.

Re: Venmo can now instantly transfer money to your debit card for 25 cents

#66

Post by pbreit »

basch wrote: post #41
pbreit wrote: post #21

Earlier quoted context omitted.

I do not understand how same-day vs next day is such a big deal. And 1% fee is like 400% annual percentage rate. Is that even legal?

"im standing at the atm, can you wire me $20 quick, ill pay you back tomorrow" "i just overdrafted and dont want to get hit with a fee, ill pay you back tomorrow" etc etc

These seem overly contrived. I think we could all benefit by being a little more prudent financially.

Re: Venmo can now instantly transfer money to your debit card for 25 cents

#67

Post by pbreit »

xenity7 wrote: post #27
pbreit wrote: post #21

Earlier quoted context omitted.

I do not understand how same-day vs next day is such a big deal. And 1% fee is like 400% annual percentage rate. Is that even legal?

It’s not a loan, and the 1% fee isn’t an interest rate, so annualization doesn’t make sense and usury laws don’t apply.

Getting money today that you would normally get tomorrow is a loan. And whatever you are charged is the interest rate.

Re: Venmo can now instantly transfer money to your debit card for 25 cents

#68

Post by whack »

pbreit wrote: post #67
xenity7 wrote: post #27

Earlier quoted context omitted.

It’s not a loan, and the 1% fee isn’t an interest rate, so annualization doesn’t make sense and usury laws don’t apply.

Getting money today that you would normally get tomorrow is a loan. And whatever you are charged is the interest rate.

Usury laws prohibit interest rates >20%, because otherwise, there are people who would actually be paying back 20% more than the amount they borrowed. In your example, that's impossible - the additional "interest" you're going to pay is never going to exceed 1% of the money you "borrowed"

Re: Venmo can now instantly transfer money to your debit card for 25 cents

#69

Post by whack »

pbreit wrote: post #66
basch wrote: post #41

Earlier quoted context omitted.

"im standing at the atm, can you wire me $20 quick, ill pay you back tomorrow" "i just overdrafted and dont want to get hit with a fee, ill pay you back tomorrow" etc etc

These seem overly contrived. I think we could all benefit by being a little more prudent financially.

As someone who's previously collected rent from multiple people, and then had to make a combined rent payment to the landlord, getting the money a day earlier often solves many logistical nightmares. Would I pay a 1% fee for it? Probably not. Would I pay a quarter? Sure

Re: Venmo can now instantly transfer money to your debit card for 25 cents

#70

Post by dietr1ch »

jedberg wrote: post #45

The other day I learned that ACH transfers are going to become same-business-day sometime around April this year. Not quite instant, but a lot better than before. Still doesn't hit the use case of cash on the weekend, but at least now the American banking system is only 20 years behind Europe instead of 50 years...

Sounds like a shithole country to me
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