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Why is everyone a bank?

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Re: Why is everyone a bank?

#81

Post by toomuchtodo »

cstoner wrote: post #59
toomuchtodo wrote: post #42

Earlier quoted context omitted.

Two examples: Auto purchase where there was an issue with the banking partner of the vehicle manufacturer. Another is a real estate transaction. Bailing friends out of jail is always cheap (~$500), but not everyone takes credit cards (no chance for the first two scenarios). Fundamentally, I should not have to explain why I would desire immediate access to my own cash reserves at a moment's notice to excuse broken fin…

Your examples seem like cases that can easily be handled by a checking account. > Fundamentally, I should not have to explain why I would desire immediate access to my own cash reserves at a moment's notice to excuse broken financial infrastructure. Yes, if you are investing in less-liquid assets to get a better RoI then you absolutely do. If you don't like the terms then you are free to keep your cash in your checki…

Personal and certified checks aren’t immediate or same day settlement, only wires or Zelle transfers are (Zelle transfers can take more than a day depending on the sending and receiving bank).

If the settlement isn’t rapid, you can’t guarantee the funds will actually settle (checks). Lots of situations where someone wants the same guarantee as cash or a wire.

Re: Why is everyone a bank?

#83

Post by pkaye »

dr_dshiv wrote: post #40
toomuchtodo wrote: post #29

Earlier quoted context omitted.

I have had to come up with a dollar amount worth several months of expenses on very short notice (same day, life is unpredictable). YMMV, but there's no reason I shouldn't be able to get those funds within seconds (if I'm adequately authenticated). With a wire, I can get it same day (if executed by ~3pm eastern). I shouldn't need to pay for a wire, or talk to a human unless a fraud signal was detected. I'm not a hedg…

You should see how easy it is to do these things in the Netherlands. No charge to wire money to an individual or business. No transaction cost for paying by card. Pay online with ideal for 0%, just scan qr code with bank app. Simple and easy.

So curious how he banks there make money?

Re: Why is everyone a bank?

#84

Post by ci5er »

tlb wrote: post #4

Another answer: because regular banks are awful to deal with. They don't have nice APIs to just move money around. They apply velocity limits at surprising times. They can terminate your account suddenly for opaque reasons. They charge high regular fees and even higher "gotcha" fees if you make a mistake. They can take back money sent to you for up to 90 days, but often can't get back money you sent to crooks even if…

> They can terminate your account suddenly for opaque reasons.

I generally am 'ok' with modern (US) banks and global, partly because I know their rules and set my expectations accordingly, but unlike what one of the sub-commenters said: "Chase" completely fucked up my world with no recompense for a while. No rhyme. No reason. Ultimately it was because I had connections to executives of the bank at the CEO level that I was able to get it sorted out, but until then, I was literally "without any money" for about 60 days. That, to put it mildly, if you don't have a reason or a recovery time-line (hard to tell your friends: trust me - I'll pay you in 15 days) if you literally don't know.

EDIT: It was /u/callmeed below. I can't say 'no' to his/her experience - but while I still work with Chase - I feel "on edge" all the time because I never know what they are going to do to me without notice.

Re: Why is everyone a bank?

#85

Post by Turing_Machine »

otakucode wrote: post #53

It has never, at any point since the introduction of electronic transfers, made the slightest bit of sense for 'payment processing' services to charge a fee which scales based upon the amount being transacted. Yet, every means of transferring money has always come with a percentage-based fee. This isn't just a simple matter of rent-seeking on the part of the financial class. It's outright dangerous, and really should…

Hmm... it seems to me that the service is exposed to more risk for higher transaction amounts (say, something is crooked, or just goes wrong and the service winds up holding the bag).

That's not to say that the current fees are necessarily fair, but it does make sense to me that larger transaction amounts should be charged more.

Re: Why is everyone a bank?

#86

Post by AchieveLife »

__MatrixMan__ wrote: post #45
tlb wrote: post #4

Another answer: because regular banks are awful to deal with. They don't have nice APIs to just move money around. They apply velocity limits at surprising times. They can terminate your account suddenly for opaque reasons. They charge high regular fees and even higher "gotcha" fees if you make a mistake. They can take back money sent to you for up to 90 days, but often can't get back money you sent to crooks even if…

This 100%. I work at a fintech that's not a bank. Instead, we integrate with people who integrate with banks--we've basically got one middleman per continent (except a few). It's awful. Rather than having to figure out the regulatory details of each jurisdiction so that we can be compliant, we instead have to figure out the regulatory details of each jurisdiction so that we can trick whichever middleman into being co…

Because that's how the cycle continues and the status quo remains the same.

It once started out with someone asking the exact same question and evolved into this.

Re: Why is everyone a bank?

#87

Post by rco8786 »

ci5er wrote: post #84
tlb wrote: post #4

Another answer: because regular banks are awful to deal with. They don't have nice APIs to just move money around. They apply velocity limits at surprising times. They can terminate your account suddenly for opaque reasons. They charge high regular fees and even higher "gotcha" fees if you make a mistake. They can take back money sent to you for up to 90 days, but often can't get back money you sent to crooks even if…

> They can terminate your account suddenly for opaque reasons. I generally am 'ok' with modern (US) banks and global, partly because I know their rules and set my expectations accordingly, but unlike what one of the sub-commenters said: "Chase" completely fucked up my world with no recompense for a while. No rhyme. No reason. Ultimately it was because I had connections to executives of the bank at the CEO level that…

Same thing happened to my wife earlier this year. She deposited a check (from an insurance company), Chase apparently deemed it fraudulent (it was not) and with absolutely zero notice simply closed her account. She pulled open the app one day and noticed that the account was just missing, with all the money that was in it.

Hours on the phone with no resolution. They told us we had to get the insurance company to contact them and verify that the check was valid. Like wtf is that. That’s not how checks work. And we’re not talking about a large sum of money. I think it was around $4k. Not particularly abnormal.

We finally walked into a branch with our 4 month old daughter, plopped ourselves in the manager’s office and told him we weren’t leaving until it was resolved. A few hours later we were told that the account was permanently closed and could not be reopened. But that we would receive a check in the mail for the funds that they quite literally stole from us.

As soon as that check cleared we closed all our accounts with Chase. Fuck them.

Re: Why is everyone a bank?

#88

Post by shaklee3 »

theturtletalks wrote: post #13
tlb wrote: post #4

Another answer: because regular banks are awful to deal with. They don't have nice APIs to just move money around. They apply velocity limits at surprising times. They can terminate your account suddenly for opaque reasons. They charge high regular fees and even higher "gotcha" fees if you make a mistake. They can take back money sent to you for up to 90 days, but often can't get back money you sent to crooks even if…

Another reason is the horrible interest rates. Wealthfront and Robinhood are offering "bank" accounts that have 1.8% APY that is FDIC insured. If your business has a high turnover month-to-month, that money used to pay your bills can accumulate interest.

I thought wealthfront and the like aren't exactly the same type of insurance. They don't put your money in a single account, and if you ever needed the insurance you have to go through a third party that made a deal with the actual banks.

Re: Why is everyone a bank?

#89

Post by okareaman »

callmeed wrote: post #77
tlb wrote: post #4

Another answer: because regular banks are awful to deal with. They don't have nice APIs to just move money around. They apply velocity limits at surprising times. They can terminate your account suddenly for opaque reasons. They charge high regular fees and even higher "gotcha" fees if you make a mistake. They can take back money sent to you for up to 90 days, but often can't get back money you sent to crooks even if…

Don't agree and I love Chase bank. I have multiple Chase accounts and transfers between them are instant. Transfers to/from external places like my TDA brokerage account, Venmo, etc. are there the next day. They also have Zelle/QuickPay (though I don't use it). My paycheck is direct deposited the day its supposed to be or earlier. I've had my debit card skimmed at gas stations twice and my wife has been defrauded by…

2nd that on Chase. I'm very happy.

Re: Why is everyone a bank?

#90

Post by brycesbeard »

cstoner wrote: post #58
fuzzfactor wrote: post #47

Earlier quoted context omitted.

I wouldn't expect Shelby, Mercedes, and their sisters to be held for cash every day myself, but if you really want to bring them home one of the most worthwhile options is cashthedayofthesaleasiswhereisnowarrantiesofany kind. http://www.classic-carauction.com/featured-cars?auctionid=10...

If you're buying a classic car with funds directly from your emergency fund, then more power to you I guess but maybe you should be less impulsive with money set aside for emergencies. Personally, if I'm expecting to make a large cash purchase I have more than a few days notice.

Many people plan poorly and have to sell collectibles quickly for immediate cash. I know people who buy and sell cars purchased from folks who need money quickly (matter of hours) and will get crazy deals simply because they have cash on hand on eg a Sunday evening.
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