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Send money to a customer’s checking account using their debit card number

balancedpayments.com

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Re: Send money to a customer’s checking account using their debit card number

#41

Post by tass »

mrjatx wrote: post #34
ginko wrote: post #32

Maybe it's because I'm from Europe, but I don't see what's so special about that. Isn't the debit card number just the bank account number?

NOoooooo not even remotely. That would be terrible. The debit card number is a layer of abstraction that allows you to HIDE your bank account number from retailers. If you give someone your bank account number they can do whatever they want until you shut down that BANK account. Someone steals your debit card or the number it's super simple to get that changed and replaced. Someone steals your bank account number it'…

I'm very confused about this.

Does that mean you should NEVER pay anyone by cheque since it has your account number printed on it?

Why is the USA one of the only first-world countries that have such prevalent usage of cheques, but it's seen as so dangerous to disclose a bank account number?

What can someone do with just a bank account number, and why isn't that problem being fixed?

Re: Send money to a customer’s checking account using their debit card number

#42

Post by mrjatx »

battani wrote: post #37
mrjatx wrote: post #34

Earlier quoted context omitted.

NOoooooo not even remotely. That would be terrible. The debit card number is a layer of abstraction that allows you to HIDE your bank account number from retailers. If you give someone your bank account number they can do whatever they want until you shut down that BANK account. Someone steals your debit card or the number it's super simple to get that changed and replaced. Someone steals your bank account number it'…

If someone steals your bank account number and charges you, you call your bank to reverse the transaction and block any future transactions from the thief :) did that yesterday, works like a charm.

I've never heard of banks completely blocking a company from attempting a charge. That's good, thankfully I've not experienced that.

Re: Send money to a customer’s checking account using their debit card number

#44

Post by mrjatx »

tass wrote: post #41
mrjatx wrote: post #34

Earlier quoted context omitted.

NOoooooo not even remotely. That would be terrible. The debit card number is a layer of abstraction that allows you to HIDE your bank account number from retailers. If you give someone your bank account number they can do whatever they want until you shut down that BANK account. Someone steals your debit card or the number it's super simple to get that changed and replaced. Someone steals your bank account number it'…

I'm very confused about this. Does that mean you should NEVER pay anyone by cheque since it has your account number printed on it? Why is the USA one of the only first-world countries that have such prevalent usage of cheques, but it's seen as so dangerous to disclose a bank account number? What can someone do with just a bank account number, and why isn't that problem being fixed?

Whats required to withdraw money from an account; the account number, routing, and some form of signature (I'm assuming ACH drops the signature requirement).

The USA is far behind on banking security. We're still using PIN numbers for debit cards and you could take my credit card and sign for any charges on it. A lot of people in the USA sign "CHECK ID" in the signature panel of their credit cards in an attempt to stop this. The idea is that if it says CHECK ID the clerk will definitely stop and check ID. But if it's not signed (which they aren's supposed to accept) or the signature is incorrect.. a store clerk will 99% of the time just pass it on. I actually never sign my credit cards because it requires a damned marker that won't look like my signature anyway.

I've never once been hassled.

Re: Send money to a customer’s checking account using their debit card number

#45

Post by mrjatx »

ginko wrote: post #35
mrjatx wrote: post #34

Earlier quoted context omitted.

NOoooooo not even remotely. That would be terrible. The debit card number is a layer of abstraction that allows you to HIDE your bank account number from retailers. If you give someone your bank account number they can do whatever they want until you shut down that BANK account. Someone steals your debit card or the number it's super simple to get that changed and replaced. Someone steals your bank account number it'…

> Someone steals your debit card or the number it's super simple to get that changed and replaced. Someone steals your bank account number it's a nightmare. So account numbers are essentially secret? Over here, they're like phone numbers. You need them to transfer money to someone else.

They aren't secret- some places require them for ACH direct transfers. Rent and mortgage nearly always requires it. The thing is you should keep it secure and NOT use it if you have the option to go another route.

Re: Send money to a customer’s checking account using their debit card number

#46

Post by bjt »

mrjatx wrote: post #34
ginko wrote: post #32

Maybe it's because I'm from Europe, but I don't see what's so special about that. Isn't the debit card number just the bank account number?

NOoooooo not even remotely. That would be terrible. The debit card number is a layer of abstraction that allows you to HIDE your bank account number from retailers. If you give someone your bank account number they can do whatever they want until you shut down that BANK account. Someone steals your debit card or the number it's super simple to get that changed and replaced. Someone steals your bank account number it'…

That's pretty grossly overstated. Bank account numbers are printed on checks, which don't have very high security around them at all.

If bank account numbers were as high risk as you say, we'd hear about rampant scams where waiters and cashiers at stores jotted the numbers down when you paid with a check and then drained your bank account later. That dog would have barked.

Re: Send money to a customer’s checking account using their debit card number

#47

Post by wierdaaron »

the_watcher wrote: post #40

Is there any way to use this as a consumer replacement to things like PayPal/Venmo? It can be really frustrating to have to wait a few days for payments to clear.

Square Cash does this exact thing. Uses an app or via email, deposits via debit card number, and has no fees. No idea how it works, but it's how most of my friends send me money. https://square.com/cash

Re: Send money to a customer’s checking account using their debit card number

#48

Post by matthewarkin »

dublinben wrote: post #12
baxter001 wrote: post #3

The sensitivity of the traditional bank account and sort number combination is totally backwards, at least in the uk, the only things you can do with a sort code and account number is pay in funds (or set up a direct debit but that's why the direct debit guarantee requirement exists). I'd feel uncomfortable extending my data exposure with my card number when I just want to receive funds.

I agree. I'm very reluctant to give anyone my debit card number. If it fell into the wrong hands, my checking account could be wiped out for who knows how long. With my credit card I can at least dispute any charges before I have to pay for any of them.

Its my understanding that Visa / Mastercard will protect non pin based debit transactions (since they are really credit transactions). ACH is a different beast, from what it sounded like when reading the article, Balanced is somehow determining account numbers / routing numbers from bank accounts, which would be bad if they got hacked. On the other hand, they could just be issuing refunds to the cards.

Re: Send money to a customer’s checking account using their debit card number

#49

Post by matthewarkin »

crdunwel wrote: post #43

$1 fee per transaction. Done entirely by computers. In huge volumes. There is no reason that entirely electronic transactions should cost more than fractions of a penny to process. Any justification for this cost is complete bullshit.

Welcome to the banking system. If they're going threw the debit card channels, through Visa, they might charge a fee, Balanced's bank may charge a fee, Balanced has to pay its employees, pay for hosting its servers, make sure they are PCI compliant, etc.

Re: Send money to a customer’s checking account using their debit card number

#50

Post by politician »

bjt wrote: post #46
mrjatx wrote: post #34

Earlier quoted context omitted.

NOoooooo not even remotely. That would be terrible. The debit card number is a layer of abstraction that allows you to HIDE your bank account number from retailers. If you give someone your bank account number they can do whatever they want until you shut down that BANK account. Someone steals your debit card or the number it's super simple to get that changed and replaced. Someone steals your bank account number it'…

That's pretty grossly overstated. Bank account numbers are printed on checks, which don't have very high security around them at all. If bank account numbers were as high risk as you say, we'd hear about rampant scams where waiters and cashiers at stores jotted the numbers down when you paid with a check and then drained your bank account later. That dog would have barked.

Do any restaurants anywhere accept checks?
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