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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

#61

Post by beedogs »

jareau wrote: post #58
tass wrote: post #41

Earlier quoted context omitted.

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?

> Why is the USA one of the only first-world countries that have such prevalent usage of cheques I'm actually thinking about writing a blog post explaining my theory behind why this is the case. Would that be interesting? tl;dr of my theory: geographic size and decentralized gov't in the US allowed a paper cheque system to outlive other countries'

Also probably the reason slavery lasted so much longer past the end of the civil war in parts of the South. Interesting parallel I guess, as paper checks seem just about as antebellum to me now.

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

#62

Post by jareau »

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.

(Balanced co-founder here)

Balanced would be happy to discuss working with Venmo/PayPal as a vendor to power their push to card payouts if they're interested.

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

#63

Post by madeofpalk »

steveklabnik wrote: post #55
madeofpalk wrote: post #54

Earlier quoted context omitted.

You're issuing 'refunds' onto the cards without charging in the first place, right?

Unreferenced refunds are generally frowned upon by the card networks. We'll talk more about what exactly we're doing eventually, but I'm not ready to explain it all while we're still building.

I believe this is what Square Cash works http://www.quora.com/Square-Cash/How-does-Square-Cash-work-t...

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

#64

Post by moolah_ »

pstrateman wrote: post #25
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.

The direct debit system is nearly identical to the US ACH system. Any funds pulled out of your account can be returned by a trip to the bank and signing an affidavit. The only difference is the inconvenience of having to physically go into the bank to reverse the payment.

With the vast majority of banks in the UK, a simple phone call with the two words "recover it" will suffice. They'll take care of the rest of the boring stuff.

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

#66

Post by jacobr1 »

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.

In this context we are talking about a merchant selling a product through a marketplace platform, not a purchase. Signing up as a merchant with a just a debit card is potentially a lower barrier to entry, especially for one-off, occasional situations. The alternative isn't your credit-card, it is your bank routing and account number.

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

#67

Post by steveklabnik »

madeofpalk wrote: post #63
steveklabnik wrote: post #55

Earlier quoted context omitted.

Unreferenced refunds are generally frowned upon by the card networks. We'll talk more about what exactly we're doing eventually, but I'm not ready to explain it all while we're still building.

I believe this is what Square Cash works http://www.quora.com/Square-Cash/How-does-Square-Cash-work-t...

Only sorta kinda.

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

#68

Post by steveklabnik »

dublinben wrote: post #56
pstrateman wrote: post #25

Earlier quoted context omitted.

The direct debit system is nearly identical to the US ACH system. Any funds pulled out of your account can be returned by a trip to the bank and signing an affidavit. The only difference is the inconvenience of having to physically go into the bank to reverse the payment.

That might be pretty difficult for members of online banks with one or no physical bank locations. I can dispute a credit card charge by email, phone, or even the web.

It's because ACH's version of chargebacks require that you sign an affidavit as part of the process.

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

#69

Post by cmarschner »

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 never understood why I need a transaction number for every wire transfer I do (this is Germany) which is sent directly by the bank via mail with no mention of the associated bank account. Account numbers are public and printed on every letter head, but the TANs are the key to withdraw money from it online. Been using it for 17 years, never had a problem. But I cursed the system a lot since it's such a hassle. Some banks even send you a piece of hardware you have to put against the screen (!) with a bar code to show you the next TAN. It's ridiculous.

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

#70

Post by getsaf »

I'm guessing they are using Visa's lesser known Money Transfer features. This stuff has been around for a little while. The company I work for recently started supporting this for insurance company payouts to customers.

https://usa.visamoneytransfer.com/Visa/Web/Help/FAQ

BTW, you can chargeback stuff on your debit card just like you can with your credit card. Both are save and typically 100% covered by the credit card company that issued the card.

I'm still amazed that people don't understand how disposable credit card numbers are. The worst thing thing you really risk when giving out your credit card is the hassle of changing any auto-payments you had attached to that card in the off-chance that your card is compromised. Debit cards are a little different in that your funds may be held for a couple of weeks under certain circumstances so that could suck but that's not often the case. /rant

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