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Why is everyone a bank?

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Re: Why is everyone a bank?

#131

Post by perl4ever »

ceejayoz wrote: post #108
IggleSniggle wrote: post #98

Earlier quoted context omitted.

Just bought a brand new car this week from a dealership (US) and the seller refused to accept a check.

They’ll generally accept a cashier’s check. Ours would also accept a personal one as long as you didn’t mind them delaying mailing the title for a few weeks.

I made a down payment on a car with a money order and the dealer yelled at me that the agreement said they weren't allowed. Eventually they relented, because they wanted to complete the deal.

Back in the 90s, I tried to pay for a computer with a certified check and CompUSA treated it as a likely counterfeit.

Re: Why is everyone a bank?

#132

Post by rco8786 »

perl4ever wrote: post #129
rco8786 wrote: post #87

Earlier quoted context omitted.

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 cont…

Sure, don't do business with Chase. But this points to why people use banks, you take for granted that your money won't disappear permanently with no recourse. So you go ballistic when it seems like it might happen. Nobody in their right mind wants to use anything where it really does happen. If Google had money that belonged to me, I have no idea where to even begin trying to get it back. Do they have offices that y…

Luckily we have regulations for that.

Google is not a bank. If they start to offer banking services it will be through a partnership with an actual bank. Your money will not be “with Google”, unless they enter the multi year, very expensive process of applying for a banking license which they’re not doing.

Not that I don’t disagree with your point, in general. But google can’t just take your money like that. At least not in the US

Re: Why is everyone a bank?

#133

Post by briandear »

qtplatypus wrote: post #112
vanniv wrote: post #103

Earlier quoted context omitted.

Honestly, I wouldn't trust Google (or any other tech giant) to be my bank. My bank doesn't have a history of locking people's accounts when they post "the wrong" political opinions online. My bank doesn't have a plan to monetize access to my account, or to limit use of the account to only those activities of which the bank's army of woke employees approve. I think I'll stick with a real bank, thanks.

Banks have a habit of closing accounts of people involved in the sex industry and recreational drugs (even in places theses are legal)

Marijuana, one of these recreational drugs, is not legal in the United States.. and banks are beholden to federal regulators. The “legality” of marijuana is in dispute because it’s still a federal crime. The Supremacy Clause overrides thèse state “legalizations.”

I am vastly in favor of states rights and the 10th Amendment, however states seem to only care about those things when it supports what they want to do.

Re: Why is everyone a bank?

#134

Post by superfrank »

ProAm wrote: post #32
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 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. Do you think Google is going to do any better at this? They already have no customer support, close accounts without notice....etc... The article is right, this is about engagement.

> Do you think Google is going to do any better at this?

Google's new checking account isn't really Google. They don't currently have the licenses needed to act as a bank. It's basically a Google branded checking account from Stanford Federal Credit Union.

From what I've read, Google's checking account will be similar to Uber's credit card in that you will sign up and get some benefits through Google/Uber, but pretty much all maintenance will be handled by the issuing bank.

Source: https://www.fool.com/investing/2019/11/17/why-is-google-abou...

Re: Why is everyone a bank?

#135

Post by mmanfrin »

ProAm wrote: post #32
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 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. Do you think Google is going to do any better at this? They already have no customer support, close accounts without notice....etc... The article is right, this is about engagement.

> Do you think Google is going to do any better at this? They already have no customer support, close accounts without notice....etc... The article is right, this is about engagement.

Absolutely. I say this as someone who is still angry with them over Reader. I don't trust Google, but I trust them a hell of a lot more than Wells Fargo, Bank of America, et al.

Re: Why is everyone a bank?

#136

Post by Iv »

ProAm wrote: post #32
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 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. Do you think Google is going to do any better at this? They already have no customer support, close accounts without notice....etc... The article is right, this is about engagement.

I think Google can be awful and still fare better than most regular banks.

Re: Why is everyone a bank?

#137

Post by thibautg »

nostrademons wrote: post #64
ChrisSD wrote: post #50

Earlier quoted context omitted.

Is that American banking? In the UK I can't say I've ever experienced such issues. I do bank to bank transfers fairly frequently.

Yes, the American banking system is just ridiculously bad. I remember studying abroad in New Zealand (in 2004!) and marveling at how EFTPOS was universal, everything was chip & pin, and funds transfers could easily be done online (and often clear the same day!). The cashiers would look at me strangely with my American credit card, and they would always check the signature. (Which, it may astound foreigners to learn,…

My European credit card works around the world but is blocked by default in the US for security reasons.

I need to call my bank to temporarily unlock it if I ever go to the US. Payments with PIN code are allowed by default though even in the US. So the problems seem to be with the swipe system.

Re: Why is everyone a bank?

#138

Post by vanniv »

sroussey wrote: post #106
vanniv wrote: post #103

Earlier quoted context omitted.

Honestly, I wouldn't trust Google (or any other tech giant) to be my bank. My bank doesn't have a history of locking people's accounts when they post "the wrong" political opinions online. My bank doesn't have a plan to monetize access to my account, or to limit use of the account to only those activities of which the bank's army of woke employees approve. I think I'll stick with a real bank, thanks.

Oh, so not true. Banks often close accounts of types of people or businesses they don’t like at the moment. Just ask a PE/VC with a BofA account!

That, though, is mostly about risk management -- and even if they close your account, you get the money back.

(I also would never do business with Bank of America, because they're awful and they hate their customers even more than Wells does)

But even BofA doesn't do things like read your Twitter posts and YouTube comments so they can blackhole your account if you have have the wrong politics.

The tech giants, on the other hand, will seize your stuff in a heartbeat if you step out of Silicon Valley's definition of acceptable beliefs and opinions.

My credit card works at any merchant -- and the fees are the same. I don't get hit with a temporary ban if I buy a Chick-fil-A sandwich, for example.

Re: Why is everyone a bank?

#139

Post by themark »

Isn’t it just data mining? I assume the big credit card companies aggregate spending by vendor for their customer base and make projections about each vendor’s quarterly revenues then sell metrics to hedge funds.

Re: Why is everyone a bank?

#140

Post by briandear »

acjohnson55 wrote: post #114
shaklee3 wrote: post #88

Earlier quoted context omitted.

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.

With Robinhood, I understand cash is SIPC insured once it hits their systems, and then it is a couple of days until it is deposited in underlying accounts at their program banks, where it is FDIC insured. So it's something to consider when moving large amounts of money. Another thing is that these neobanks have withdrawal amount limits and ATM limits, and so they aren't a great choice for storing emergency funds.

> Another thing is that these neobanks have withdrawal amount limits and ATM limits

Every French bank has these limits. I once had a French bank account that limited my debit card to €2500 in purchases in a month — for no good reason other than trying to limit access to my own money. Cash purchases over €1000 are also illegal in France. For the most ridiculous banking rules and limits, France is the place. My chase account in the other hand, I could withdrawal $100k in cash if I wanted. Still have a (high) debit card limit, but I can call them and immediately get it lifted for a specific transaction (such as buying a car.)

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