If pay with debit card you are doing a bank transfer. Maybe in the US most people are using credit cards but in EU many are using debit cards.
Bank transfers as a payment method
101–110 of 335 posts
Re: Bank transfers as a payment method
#102Earlier quoted context omitted.
I think it's less "factually incorrect" and more "nuanced and incomplete". As a European that moved between countries, I was very surprised when I learned that SEPA allows a "pull" mechanism even exists. I lived 30 years in Latvia without knowing this is a feature in SEPA because every single payment is a "push" mechanism. I'm not sure if banks can turn this feature off, or if it just culturally never gained traction…
SEPA 'pull', aka merchant initiated transfers require a one time authorization, repeat debits require a one time authorization for the first payment and can be re-run afterwards (used for subscriptions), and can be revoked up to 90 days after the payment was done.
> a one time authorization
Yes, but how well defined, or how loose, is that "authorization"?
Re: Bank transfers as a payment method
#103Earlier quoted context omitted.
Bill payments sure, but not many businesses accept Interac e-transfers.
I bought something here in Australia last week with a bank transfer, and I've paid plenty of business using e-transfer in Canada - especially when covid kicked in.
I was forced to pay Qantas using BPAY (as in, I did not want to spend $70+ on card fees). I ended up cancelling the flight for a full refund and was told I need to wait up to 12 weeks to get it paid back into the account.
Definitely not as flexible as a credit card payment which would have been reimbursed within days.
Re: Bank transfers as a payment method
#104Earlier quoted context omitted.
SEPA 'pull', aka merchant initiated transfers require a one time authorization, repeat debits require a one time authorization for the first payment and can be re-run afterwards (used for subscriptions), and can be revoked up to 90 days after the payment was done.
> a one time authorization Yes, but how well defined, or how loose, is that "authorization"?
The account owner can control the frequency and the maximum amount per period. It's not the case that some random entity can just grab all your money.
Re: Bank transfers as a payment method
#105The article is factually incorrect when it talks about "SEPA payments", claiming they are a "pull" mechanism. What it probably meant to talk about, is SEPA Direct Debits -- where the counterpart charges your account, as opposed to you paying the counterpart. Given that these direct debit agreements are revokable at any point in time, I doubt the claims of very high fraud rate. A normal SEPA payment, is a "push" affai…
I'd have to agree. Everything in the article about Europe is technically correct, but it is such a small slice of the SEPA payments. The article is so misleading it might as well be wrong. I make payments to the benelux, france, germany, spain and poland, and they go all over the push mechanism. Direct debit is for utilities, and that's about it. For fraud, my bank provides a gui with active agreements. While I can't…
My bank in Norway (SBanken, formerly Skandia Bank) allows me to specify a maximum amount that any creditor can ask for per month when using the equivalent of direct debits (and I also get notified in advance of every payment so that I can cancel either the individual payment or the whole agreement if I wish. This is all done via the web or app and takes effect immediately, no need to ask anyone at the bank to do anything. Here it is called AvtaleGiro.
Re: Bank transfers as a payment method
#106The article is factually incorrect when it talks about "SEPA payments", claiming they are a "pull" mechanism. What it probably meant to talk about, is SEPA Direct Debits -- where the counterpart charges your account, as opposed to you paying the counterpart. Given that these direct debit agreements are revokable at any point in time, I doubt the claims of very high fraud rate. A normal SEPA payment, is a "push" affai…
> Most banks charge a hefty fee for an instant payment (mine charges €1.25).
Interesting. In my country (Finland) all banks that have joined the TIPS (SEPA Instant Settlement) always use it automatically if the destination bank supports it as well - at no extra charge to the account holder of course. Are you sure you are talking about TIPS / SCT Inst payments? Either way, your bank is not allowed to charge extra fees for cross-border SEPA transfers (as compared to domestic.)
Re: Bank transfers as a payment method
#107Australia's New Payment Platform performs bank transfers instantly, and can use email address, phone number, or business ID as a destination (the recipient must first have registered this with their bank). No fees. It's pretty decent. https://www.rba.gov.au/payments-and-infrastructure/new-payme...
There is a delay of first transactions.
PayID is what it it is called for most banks.
Re: Bank transfers as a payment method
#108If pay with debit card you are doing a bank transfer. Maybe in the US most people are using credit cards but in EU many are using debit cards.
In the US, there is a difference between debit cards, ACH, and bank transfers. They are three separate things.
Re: Bank transfers as a payment method
#109It's a no-brainer. Card processing fees are just too high (2.9% + $0.3). Account transfers bring more flexibility and convenience and costs almost nothing.
Indian here. One thing you should remember is that UPI is free (so far) because it is not a 'Credit' product yet. With a credit card, someone is giving you a loan for x days and there are costs associated with it - interest rates, default rates, etc.
Of the 2.9% that Stripe (or any other processor) charges, a majority of the fee goes to the credit card issuer, i.e. bank. You probably chose to use a particular credit card because of the rewards offered by that particular bank. So, practically, a majority of the 2.9% fees goes to the issuing bank and a major portion is returned as rewards to the credit card user, i.e. the payer. Since the merchant, i.e. the seller, probably raised the prices by ~3% in order to afford the processing fees and credit card users get back most of it in rewards, people that use any other mode of payment end-up paying extra for the same product practically.
'Credit' cards are going to cost money for the foreseeable future. Issuing banks charge anywhere from 1.8% to 3% or higher for processing credit their cards. Processors add a markup on top of this fees to their merchants. 'Debit' cards issued by the major banks on the other hand, cost less than 0.5% for the processors. Stripe charges 2.9% for both debit as well as credit cards, YES but their costs to them are not the same.
Re: Bank transfers as a payment method
#110Earlier quoted context omitted.
If you like pull transfers, try the Netherlands. I was surprised at the low number of businesses offering it in France. In the NL, with nearly every recurring payment, including government, they are almost always the only way to pay: setting them up with an accord to direct debit your account.
Government payments in the Netherlands can be done in installments using direct payments, but the direct debit ones are the easiest and that is why many people use them. Far less chance of missing a payment. But if you want to do it yourself for every payment you can. Better not miss any though.
_If_ you get your salary on/before the 25th. Because changing the invoice date is almost never possible, and government agencies are even explicit about that.