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Fed announces details of new interbank service to support instant payments

federalreserve.gov

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Re: Fed announces details of new interbank service to support instant payments

#121

Post by reaperducer »

kelnos wrote: post #63
Krasnol wrote: post #12

Earlier quoted context omitted.

How is a national ID still a thread with all the data on voters which is already out there? You could have verified voters accounted this way too which would probably raise the amount of voters. You could even establish mail voting properly sending the documents to everybody who's eligible without a need to register. I don't understand that fear of a national ID in the US. It works in other countries and you have stu…

The GOP doesn't want more people voting; they hang onto power mainly through gerrymandering and various voter suppression measures.

The GOP doesn't want more people voting; they hang onto power mainly through gerrymandering and various voter suppression measures.

If you think this is unique to the GOP, you missed the last century of politics in Chicago.

Re: Fed announces details of new interbank service to support instant payments

#122

Post by uoylj »

supernova87a wrote: post #106

What I really want this payment system to do is eliminate the direct debit system from checking accounts and return some real security to banking. Secure, irrevocable payments, only initiated by me, from my account to others. No more system that allows mistake debits or others to accidentally/maliciously deduct from my checking account, such that I have to be watching for errors and ask for them to be fixed. Or wonde…

You're describing Bitcoin.

Re: Fed announces details of new interbank service to support instant payments

#123

Post by reaperducer »

ahmedfromtunis wrote: post #19

How come the US -- the biggest economy in the world, and home of the most sophisticated banking sector on the planet -- is still not equipped with such a system? Are banks resisting it and if yes, why would they?

How come the US -- the biggest economy in the world, and home of the most sophisticated banking sector on the planet -- is still not equipped with such a system?

Because, as pointed out in other comments, the United States pioneered electronic finances when the rest of the world's banks were still settling their accounts at the end of the day by dragging cartloads of paper money and gold bars from branch to branch.

You're welcome.

Re: Fed announces details of new interbank service to support instant payments

#124

Post by rafaelturk »

kovek wrote: post #94
lelc wrote: post #84

If anyone from the FED is reading this I have this advice: don't use ISO20022! (I've been working on the brazilian instant payments project, known as PIX). It's an overly-complicated-try-to-solve-everything standard that promises interoperability but only delivers pain and misery. Since each country has its own standards for person and account identification, in dealing with these local realities, the ISO20022 adds q…

What would be an alternative?

Well documented json

Re: Fed announces details of new interbank service to support instant payments

#125

Post by Animats »

reaperducer wrote: post #107
foxfired wrote: post #16

Earlier quoted context omitted.

Correct me if I'm wrong, but the Real ID act[1] is a national ID in every way but the name. [1]: https://www.dhs.gov/xlibrary/assets/real-id-act-text.pdf

Correct me if I'm wrong, but the Real ID act[1] is a national ID in every way but the name. If it was a national ID, it would be mandatory. Real ID is optional.

Not if you want to travel by air.

Re: Fed announces details of new interbank service to support instant payments

#126

Post by rafaelturk »

lelc wrote: post #84

If anyone from the FED is reading this I have this advice: don't use ISO20022! (I've been working on the brazilian instant payments project, known as PIX). It's an overly-complicated-try-to-solve-everything standard that promises interoperability but only delivers pain and misery. Since each country has its own standards for person and account identification, in dealing with these local realities, the ISO20022 adds q…

I'm also working with Brazilian instant payments schema, aka PIX. We've simply created a mapping layer to convert all ISO messaging to json.

Internally all our logic runs on json. It works because at the end of the day, payments only need a few fields to work: Source, Destination, Amount.

Re: Fed announces details of new interbank service to support instant payments

#127

Post by jonahbenton »

supernova87a wrote: post #106

What I really want this payment system to do is eliminate the direct debit system from checking accounts and return some real security to banking. Secure, irrevocable payments, only initiated by me, from my account to others. No more system that allows mistake debits or others to accidentally/maliciously deduct from my checking account, such that I have to be watching for errors and ask for them to be fixed. Or wonde…

There will be banks that offer products for handling pulls differently, it's a product decision, various features around this are available for the big boys, just haven't trickled down to the masses. But this decade they will. Has nothing to do with Fed Now.

Irrevocability- for consumer payments there will always be revocability. Humans doing stuff make mistakes, and need to be able to "take it back." At the ledger level, all transactions are irrevocable. You apply other transactions on top to implement recovability.

Re: Fed announces details of new interbank service to support instant payments

#128

Post by Tehdasi »

lelc wrote: post #84

If anyone from the FED is reading this I have this advice: don't use ISO20022! (I've been working on the brazilian instant payments project, known as PIX). It's an overly-complicated-try-to-solve-everything standard that promises interoperability but only delivers pain and misery. Since each country has its own standards for person and account identification, in dealing with these local realities, the ISO20022 adds q…

Incidentally, the Australian equivilant of this (NPP) is going with ISO20022.

Re: Fed announces details of new interbank service to support instant payments

#129

Post by earthboundkid »

endogui wrote: post #75
throw0101a wrote: post #44

Earlier quoted context omitted.

> […] a national ID which I am more against the more I hear about […] The US already has a de facto one AFAICT: the Social Security Number (SSN). Unique to every individual, assigned from birth (or whenever applied for), and which never changes for the life of the person until they die. > Many countries issued such numbers for a singular purpose, but over time, they become a de facto national identification number. F…

The SSN is not an ID but a number: anyone with your number can claim to be you for the purposes of transactions. The number is only tied to name and birthdate, maybe address if you are of the age to pay taxes. This enables a lot of fraud: I once saw someone apply for a rewards (credit) card in a US store with SSN and no photo ID ("Oh I left my drivers license at home, could you take a student ID?") Not sure how Europ…

Yes. It’s important to emphasize that US infrastructure sucks because we have chosen to make it suck, not because fixing it is impossible or even difficult. “Identity theft” is a joke.

Re: Fed announces details of new interbank service to support instant payments

#130

Post by harikb »

One thing I don't see mention regarding the existing US ACH (or whatever interbank) system is that there is absolutely no verification or security in this system. Just like verification of paper check signature and a whole lot of other financial items - most banks allow anything until questioned. The easiest and cost effective way is to let it happen and reimburse for failures.

1. I have linked a non-joint account in my name at bank A to another (non-joint) account of my wife at bank B (accidentally) without any verification of any kind. I call BS on anyone claiming they magically checked the home address link or know we are married.

2. I have walked in to my bank and did a wire transfer of a large amount without any kind of verification. They didn't check my ID. I am not kidding. I did enter my ATM card and PIN. Then why do they have a $500 or $1000 limit at ATM. If someone did get my ATM card and PIN, they just had to appear confident and walk in to the branch. This is one of the largest banks in the US.

3. Because my wife doesn't like to deal with customer service of various financial items (credit-cards, 401k etc). I regularly call and just say I am her (clearly feminine name) and the conversation carries on as if nothing is surprising/suspicious.

4. On the other extreme, IRS's "MyIRS" site let us authenticate yourself (first time setup) using a security question that allows one to type any financial account number. CC, Bank, 401k, whatever. I mean how tf did they get all that data on me? legally? Why does IRS need my CC number?

IMHO, the only thing keeping us secure is that nobody from outside US has really tried to mess around with US banks.

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