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Hmm neat, however what benefits do I get using this when it's also built into Gmail and provided directly by Google Wallet? http://www.google.com/wallet/send-money/
Note that it takes 1-2 days for the deposit. They must be using ACH to do this. The 'free' part is great. Even with Square, I'd be hesitant to enter my debit card number. Planet Money recently did a great episode all about the US's ACH system and why it works the way it does. http://www.npr.org/blogs/money/2013/10/04/229224964/episode-...
That being said, I have a question: Here in Canada, I can send an email transfer of funds from my bank account to my contacts by simply logging into my bank online and specifying the email address of the recipient. Does this type of system exist in the US?
NSA will start to deposit the cash you send, its just "Metadata"
I understand the attempt to farm karma by mentioning the NSA in every single unrelated thread, I'm just surprised that this is the best that you could do. Surely there's a better story to be told in monitoring financial transactions (which they actually do) than in pretending that they're going to steal the $8 you sent to your buddy for beer.
Note that it takes 1-2 days for the deposit. They must be using ACH to do this. The 'free' part is great. Even with Square, I'd be hesitant to enter my debit card number. Planet Money recently did a great episode all about the US's ACH system and why it works the way it does. http://www.npr.org/blogs/money/2013/10/04/229224964/episode-...
> Even with Square, I'd be hesitant to enter my debit card number. Are you afraid of entering your debit card number? How do you make purchases online?
Really, it's because I use my credit card as a firewall account. If my credit card gets compromised (which has happened twice before), I have to change maybe a dozen things that link to it. It's an inconvenience, but my bank can get me a new card the next day. Worst case scenario I lose my credit card for a week or so.
If my checking account is compromised, things are worse. If my checking account gets locked, not only can I not use it, I also can't pay my credit card. I'd have to setup my paycheck (pain), rent (pain), and some other things. Then I'd have to re-link a couple of other bank accounts. While I like my current bank, I don't want to take the risk of that account being locked for a week.
The idea of giving a random website (in that I don't have an account/relationship with them) a number that provides direct access to my paycheck gives me the shivers.
You could do basically the same thing with ACH. If a payment service asked you to enter your routing and account numbers, would you be OK with that? I see it as the same thing.
The simplicity of this is amazing. That being said, I have a question: Here in Canada, I can send an email transfer of funds from my bank account to my contacts by simply logging into my bank online and specifying the email address of the recipient. Does this type of system exist in the US?
Note that it takes 1-2 days for the deposit. They must be using ACH to do this. The 'free' part is great. Even with Square, I'd be hesitant to enter my debit card number. Planet Money recently did a great episode all about the US's ACH system and why it works the way it does. http://www.npr.org/blogs/money/2013/10/04/229224964/episode-...
Faster transfers are possible. Some companies (Kabbage maybe?) are able to do same day or instant transfers without wiring. I believe it's done by opening bank accounts at major banks, and then using the interbank transfer system which is instantaneous and only requires an account number and a name. Other services offer pushes to credit cards or debit cards using bill pay systems or blind credits. It isn't actually t…
The Planet Money podcast noted that some banks (Capital One, BoA) offer a similar service if both ends have accounts.
They're obviously taking a loss on this (due to credit card fees) if the recipient gets the full amount sent. So this must be a loss-leader that's building up to something else where they expect to make a ton of money. That "something" is most likely just "replacing cash and cards", but will be interesting to see how it plays out. It's a bold move regardless. EDIT: I meant debit card transaction fees, not credit card…
I believe that Amazon Payments is the only system that lets you pay someone with a credit card, although it's limited to $1,000/month (otherwise people abuse it, sending cash to each other to rack up points on their credit cards).