41–50 of 88 posts
How does effect Visa & MasterCard
I expect banks to start charging a $65 per transaction premium to interface with this system. FedACH, or "direct deposit", costs pennies wholesale [0]. The value proposition of Venmo/Zelle is not just that they're instant, but that the fees are not insane. Compare that to retail banks which charge upwards of $35 for a "next-day ACH". The Fed should impose fee caps to encourage adoption. [0] https://www.frbservices.or…
The real cost to ACH is fraud, not the electronic processing, per se. The faster a payment settles the easier and more profitable fraud becomes as it makes it easier to cash out and run. Low fees, fast transfers, high volume/high value--you only get to pick two of the three. (Okay, maybe that doesn't quite work, but you get the idea.)
Earlier quoted context omitted.
NPP is on it's way to being really handy, but it still sucks that I have to hack things to force NPP for some payments (ie. CommBank will only use NPP for PayID payments, but banks like Up will use NPP for transfers for a BSB/Account number if the receiving banks supports it, not all banks are fully on the platform yet) The downside is my teenagers can now shake me down for cash remotely
NPP is a joke. There's a limit of $1,000 for transfers. It doesn't always work if you don't use a PayID. Compare that to Faster Payments which easily works with 250k with or without a PayID
Good lord, that's an awful name for something like that.
Good lord, that's an awful name for something like that.
Earlier quoted context omitted.
The real cost to ACH is fraud, not the electronic processing, per se. The faster a payment settles the easier and more profitable fraud becomes as it makes it easier to cash out and run. Low fees, fast transfers, high volume/high value--you only get to pick two of the three. (Okay, maybe that doesn't quite work, but you get the idea.)
I'm not exactly an expert on clearing, but isn't the reverse also true? FedACH's 24+ hour turnaround makes a whole slew of scams (e.g. fraudulent cash-in, legit cash-out[1]) possible that wouldn't be with an instantaneous system. [1]: I send you, good samaritan, $500 "by accident" and ask you to return it. You return it, my original transaction never clears, and I'm $500 richer.
Perhaps there still are modern equivalents to kiting. I dunno. But, yeah, in any event fraud is a real problem. It's why we can't have nice things, at least without paying an insurance premium.
I expect banks to start charging a $65 per transaction premium to interface with this system. FedACH, or "direct deposit", costs pennies wholesale [0]. The value proposition of Venmo/Zelle is not just that they're instant, but that the fees are not insane. Compare that to retail banks which charge upwards of $35 for a "next-day ACH". The Fed should impose fee caps to encourage adoption. [0] https://www.frbservices.or…
The real cost to ACH is fraud, not the electronic processing, per se. The faster a payment settles the easier and more profitable fraud becomes as it makes it easier to cash out and run. Low fees, fast transfers, high volume/high value--you only get to pick two of the three. (Okay, maybe that doesn't quite work, but you get the idea.)
Earlier quoted context omitted.
NPP is a joke. There's a limit of $1,000 for transfers. It doesn't always work if you don't use a PayID. Compare that to Faster Payments which easily works with 250k with or without a PayID
If you regularly need to move 250k sums electronically inside the Australian economy, using this kind of mechanism, I'd love to know what you're doing. Only because I am nosy: I cannot conceive of transactions on this level which demand NPP class behaviour.
Some real-time payment infrastructures to compare to: UK - Faster Payments Service (2008) https://en.wikipedia.org/wiki/Faster_Payments_Service EU - SEPA Instant Credit (2017) https://en.wikipedia.org/wiki/Single_Euro_Payments_Area#SEPA... Australia - New Payments Platform (2018) https://en.wikipedia.org/wiki/New_Payments_Platform
Also, despite not technically being a governmental operation, see https://en.wikipedia.org/wiki/Unified_Payments_Interface , from India.
UPI is quite revolutionary. Launched in 2016 [0], UPI handles 882.3 million transactions with ~USD 21 billion in transaction value [1], as of July, 2019.
UPI is designed to be a payment utility by National Payments Corporation of India (NPCI). NPCI is not a governmental organisation but is formed by a collective of 56 Indian Banks including 10 core banks [2].
[0] - https://en.wikipedia.org/wiki/Unified_Payments_Interface [1] - https://www.medianama.com/2019/08/223-upi-transactions-grew-... [2] - https://www.npci.org.in/about-us-background
Earlier quoted context omitted.
NPP is on it's way to being really handy, but it still sucks that I have to hack things to force NPP for some payments (ie. CommBank will only use NPP for PayID payments, but banks like Up will use NPP for transfers for a BSB/Account number if the receiving banks supports it, not all banks are fully on the platform yet) The downside is my teenagers can now shake me down for cash remotely
NPP is a joke. There's a limit of $1,000 for transfers. It doesn't always work if you don't use a PayID. Compare that to Faster Payments which easily works with 250k with or without a PayID
ANZ have a $5000 limit. It's down to the bank to enforce this.