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Square Cash

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Re: Square Cash

#151

Post by kevinpet »

jervisfm wrote: post #140
ketralnis wrote: post #47

Earlier quoted context omitted.

The US equivalent is ACH, which has the major downside that using only the bank ID (routing number) and account number you can effectively wipe out the target's account. It's up to your bank (or whatever ACH proxy) to keep you from doing that, not to the interchange, both legally and technically. ACH also takes several days to work, and has a wide window for either bank to declare the transfer fraudulent, so many ban…

> The US equivalent is ACH, which has the major downside that using only the bank ID (routing number) and account number you can effectively wipe out the target's account Interesting. I had come to a similar conclusion myself. I noticed that in paying my school fees all I needed was those two numbers (banking routing #, bank acct #) for payment with no further verification. As you have observed all of these details a…

I use checking and savings in this way. I think it's pretty common to do so that checking is a revolving fund and doesn't hold any significant money, but it's also common to just have all your money in the one account.

Anyway, good description of ACH above. Very few people understand how it works.

Re: Square Cash

#153

Post by pranavpiyush »

kapilkale wrote: post #59
MBCook wrote: post #13

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…

Yep - Kapil is correct. Any serious payments company manages accounts in various banks and uses its internal systems to manage credits and debits at the individual account level.

Re: Square Cash

#154

Post by pranavpiyush »

hyperbovine wrote: post #145
lachyg wrote: post #84

Earlier quoted context omitted.

0.05% + 22¢ for debit cards.

That is an insane amount of money to be losing if/when this thing takes off. There must be more to the story.

I don't think so. Its a user acquisition cost. Instead of putting up Ads, they're offering a free service. Good tactic.

Re: Square Cash

#155

Post by wiredfool »

aioprisan wrote: post #127
thaumasiotes wrote: post #104

Earlier quoted context omitted.

Yes, in the US you can take money out of an account if you know the number. No, it's not a good system.

Actually, you can't just take funds out. How would you do that, counterfeit a check and commit fraud by cashing it in? The bank ATMs/teller machines would reject that check and you'd find yourself in prison very quickly.

Actually, you can.

1) ACH. Everyone has mentioned that already. I'd need routing and account number, and likely need to know if it's checking/savings or business/personal. Like they've said, everything that I can find on a check. You could contest it for ~ 60 days, but you'd have to sign something at the bank, and you're out the money till you do.

2) Drafts. They're like checks, but not. Some health clubs (Curves, iirc) do this as well as some other less reputable businesses. Basically, once you sign an authorization (that they keep on file, not like it gets passed to the bank or anything), they can print a check like thing and put some specific language in the signature block area, and deposit it. Typically, this is done in bulk. Often times, it's then immediately converted into an electronic equivalent check (Check21 law) and then deposited in one big file. Return rates on these are astronomical. Most banks won't touch them. They should die.

Re: Square Cash

#156

Post by mallipeddi »

Since the emails are not encrypted, anyone in the middle who's capable of scanning this traffic can basically see all the transactions passing by?

Re: Square Cash

#157

Post by foundlogin »

lostlogin wrote: post #114
abraham wrote: post #98

Earlier quoted context omitted.

If you don't trust your bank to fix fraud, than you need a better bank.

I actually laughed at that. Every bank here is the same and we supposedly have some of the safest banks in the world. Im limited to an 8 character password, and the other banks here are little better. New Zealand.

It's safe in NZ because even with access to your internet banking, a thief can only transfer money to another NZ account and they're fairly reliable at verifying the identities of account holders.

Re: Square Cash

#158

Post by ezzaf »

lostlogin wrote: post #114
abraham wrote: post #98

Earlier quoted context omitted.

If you don't trust your bank to fix fraud, than you need a better bank.

I actually laughed at that. Every bank here is the same and we supposedly have some of the safest banks in the world. Im limited to an 8 character password, and the other banks here are little better. New Zealand.

Really? I've been impressed with Kiwibank's balancing security and usability. Rabobank NZ have two factor authentication too.

Of course if you're with one of the four majors, well... they're owned by Australians, what did you expect?

Re: Square Cash

#159

Post by AustinLin »

Hands down one of the best interfaces / UX I have ever used. It's about time someone made sending money really simple and free. Can't wait to see how this service matures.

Re: Square Cash

#160

Post by moconnor »

nly wrote: post #15

And composing an email to send someone money is secure how? What stops someone from spoofing my email address, CC'ing it to cash@square.com, and clearing me out? And if someone does get in to my email account I'm toast?

Surely it's the other end that is insecure. If this starts growing then sniffing unencrypted emails from Square offering "sign-up to receive your money" sounds profitable enough to be interesting to some actors.
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