> 0.5% APY on savings accounts How insulting, and yet still better than the competition
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Square Banking
111–120 of 174 posts
Re: Square Banking
#112Earlier quoted context omitted.
What has happened to Simple? I have seen their TV ad non-stopped for a while, then it stopped.
BBVA bought them in 2017 and killed it 3 years later.
BBVA bought Simple in 2014, and killed us in 2021, so they kept us on for a good 6 years. I was honestly surprised they didn't do it earlier, such as when they axed the whole C-suite in 2017.
Re: Square Banking
#113Just like a bank, without the security. Have a look like modern banks are done say in the UK - Monzo etc.
I think you’ve missed a couple of details. The loans are provided by square’s ILC, and the checking account is an FDIC insured one with Suffolk bank.
So ‘just like a bank, with the same security’ would be more accurate.
Re: Square Banking
#114[deleted]
Re: Square Banking
#115Earlier quoted context omitted.
Banks used to structure these charges to create overdrafts whenever possible. They made it very difficult for you to see what your actual usable balance is. They also used to be allowed to simply reject the transaction if you didn't have the money and still charge a $36 fee. It was insanity. If your checking balance never reaches close to zero, you wouldn't notice this. I was a teenager in 2010 and definitely got hit…
In 2006 PayPal tried to deduct ~$500 dozens of times in a 48 hour period due to what was obviously a software bug. This resulted in me being overdrawn by around $900. No matter who I spoke to on the phone with Bank of America, nor which branch manager I met with in person, nobody could do anything to help me. The most I accomplished was having a branch manager agree to waive 1 overdraft fee since I had never overdraf…
Anecdata:
I overdrafted a few months in to having my credit union account. The bank manager literally called me on the phone that day and asked if I could come in and cover the charges. I couldn't because I was too far away or out of town or something. Manager asked if I could come in the next day, to which I said yes, and did, and received no overdraft fees.
Another credit union (which I have since left) in my area was a total nightmare to do business with. 6-10 transactions were met with shocking resistance and frustration. Check reviews for your propsective bank if possible.
Re: Square Banking
#116It's amazing to me how much of a better product can be created when everything is in one place. It's obvious that when you're charging customers and paying invoices through the same interface, that you'll have more visibility on your cash flow and it'll generally be easier to use, but this goes so much further. The reason those loans are easy is because Square know your history of charging customers. The reason they…
Maybe we can also start moving away from feature-limited Saas offerings that are so damn proud that they focus on One Thing And One Thing Only when customers want just one affordable app to handle all their work and not fifty-eleven ones that become crazy expensive.
This. And interoperability, stepping over each other, different teams owning different solutions, conflicts and overlaps etc.
Precise why my company built a one-stop-shop SaaS for our domain (revenue operations). We need more of these, thinking from a user's point of view.
Re: Square Banking
#117Earlier quoted context omitted.
Yeah, this is huge in an age where a lot of people are dinged through recurring subscriptions. You could rack up 5 or 6 charges and not even realize it, at which point you're out hundreds of dollars in overdraft fees.
I always struggled with this concept, why not stop at 0 when the account is overstretched? Here in Europe, for most people I would say, it's quite rare that the account goes to 0, and if it does, the transactions simply don't go through (unless it's a credit card). Isn't that asking for borrowing money at no fee? Don't get me wrong, I absolutely despise predatory bank charges, but wonder if that's a bit much to ask a…
In France many banks propose an overdraft service which is limited ( as an example, for a student with no banking history to 200 euros), and is basically a mini free loan. There are rules like you can't stay on overdraft more than X days ( iirc the only one I've seen is 30 days), in which case you pay a fee.
Re: Square Banking
#118While Square makes (more) sense to get into the banking game, I've noticed a lot of companies only tangentially related to finance doing similar things, and I wonder what it's indicative of: - T-Mobile offers an exclusive checking account for their customers - Credit Karma promoting their own debit card - Robin hood doing "Cash Management" - Coinbase offering a debit card with crypto rewards Has something changed wit…
Banks are also sticky - people don't often switch them, so once you start, its hard and unlikely you'll move. That helps ensure your product stays in use.
Re: Square Banking
#1190 overdraft fees. Yay. More like it. It will force major banks to rethink their overdraft fees as a revenue center. As someone who was not so well financially just a decade ago, overdraft fees seemed like penalty for being poor. When you are living paycheck to paycheck, you never know when your account will get overdrawn. And most evil thing was - bank will deny the charge because you didn’t have enough funds but wil…
https://www.fdic.gov/consumers/overdraft/ Overdrafts have been opt-in by regulation since 2010. What banks have done is try to trick people into opting into "overdraft protection," which is really just the old system that allows a customer's checking balance to drop below 0: https://www.wellsfargo.com/credit-cards/features/overdraft-p... As long as a customer takes no action or just says "no," they won't be allowed o…
So how do you opt-out? Or is this an action you have to take when creating the account.
Re: Square Banking
#120It's amazing to me how much of a better product can be created when everything is in one place. It's obvious that when you're charging customers and paying invoices through the same interface, that you'll have more visibility on your cash flow and it'll generally be easier to use, but this goes so much further. The reason those loans are easy is because Square know your history of charging customers. The reason they…
As a small business owner do you really want your banking to be tied to your POS system though? Why not offer Square 'housing' too. Sell with Square and live in a Square condo[0]
[0] So long as you never ever leave Square for another system.