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An update on the Federal Reserve’s Instant Payments Service

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Re: An update on the Federal Reserve’s Instant Payments Service

#31

Post by lotsofpulp »

happymellon wrote: post #27
lotsofpulp wrote: post #15

Earlier quoted context omitted.

All the major banks in the US have supported online ACH or Zelle money transfers for over a decade now. ACH takes a few days, Zelle is instant, but there has not been a need to use 3rd party apps for many years.

Literally my point. Not all banks support Zelle. It's a 3rd party app.

Zelle is owned and operated by the biggest banks in the US, it's basically like using your own bank. You do not even have to use the Zelle app, you can just log into your bank's app and transfer money from there.

And sure, there would have been no need for it to exist had the US government done its job 20+ years ago as opposed to waiting until the 2020s, but the reality is that most Americans have been able to instantly transfer money online using their bank for quite a few years now.

Re: An update on the Federal Reserve’s Instant Payments Service

#33

Post by georgeburdell »

patch_cable wrote: post #29
woodruffw wrote: post #20

It's petty of me, but I hope that FedNow utterly eradicates Zelle: I've spent my entire life in the mess that is the US's banking system, and every trouble I've ever had pales in comparison to the troubles that Zelle gives me on a near-daily basis.

Can you say more? Zelle basically never worked for me at my local credit union (every single attempt to use it locked my account on suspicion of fraud), but I use it regularly with Chase with no issue. How do you hope FedNow will improve on the concept?

Same experience

Re: An update on the Federal Reserve’s Instant Payments Service

#34

Post by lotsofpulp »

woodruffw wrote: post #30
lotsofpulp wrote: post #23

Earlier quoted context omitted.

Sounds like your bank (Discover) is restricting you from transferring a certain amount of money. Why would you hold that against Zelle?

Zelle's job is arguably to abstract over banks; the fact that they pretend to do instant settlement by using debit transactions (which are then subject to all kinds of weird per-bank and per-network limitations) means that they fail at this basic task.

Isn't Zelle one network already, that the big banks got together and made to provide a better experience than ACH?

Presumably, the limits are set by each bank (for their own customers). For example, BoA has these:

https://www.bankofamerica.com/online-banking/zelle-transfer-...

There is no limit to receive, but if you want different limits for sending, then perhaps you should change banks? Although, the above limits seem pretty generous for an instant, non reversible transfer of money.

If you want to instantly transfer more than, say, $15k, then presumably you would want more reversibility.

Re: An update on the Federal Reserve’s Instant Payments Service

#35

Post by cuuupid »

raverbashing wrote: post #28
lotsofpulp wrote: post #15

Earlier quoted context omitted.

All the major banks in the US have supported online ACH or Zelle money transfers for over a decade now. ACH takes a few days, Zelle is instant, but there has not been a need to use 3rd party apps for many years.

If the situation was so fine and dandy you wouldn't still have $30tri of cheque transactions "ACH takes a few days" Americans in denial about this and their "open market for tax filing solutions" is interesting

I don’t know how this devolved into an America bashing thread but it’s worth noting that cheque transactions have other causes. You could make the same argument about the popularity of cash as a payment method abroad.

ACH sucks but Zelle is at least second party; every major bank supports it and I don’t need any details to transfer money beyond their phone number.

Re: An update on the Federal Reserve’s Instant Payments Service

#37

Post by alsodumb »

woodruffw wrote: post #20

It's petty of me, but I hope that FedNow utterly eradicates Zelle: I've spent my entire life in the mess that is the US's banking system, and every trouble I've ever had pales in comparison to the troubles that Zelle gives me on a near-daily basis.

I've been in the US for only a few years now, and Zelle works seamlessy for me. Granted, I think everyone I zelled had a bank account with Chase, BofA, PNC, and Wells Fargo - only the big ones.

Re: An update on the Federal Reserve’s Instant Payments Service

#38

Post by orangepurple »

lotsofpulp wrote: post #31
happymellon wrote: post #27

Earlier quoted context omitted.

Literally my point. Not all banks support Zelle. It's a 3rd party app.

Zelle is owned and operated by the biggest banks in the US, it's basically like using your own bank. You do not even have to use the Zelle app, you can just log into your bank's app and transfer money from there. And sure, there would have been no need for it to exist had the US government done its job 20+ years ago as opposed to waiting until the 2020s, but the reality is that most Americans have been able to instan…

Please explain to me how the government prevented instantaneous ACH transfers.

Zelle is a shitty middleman with ridiculously low transfer limits.

Re: An update on the Federal Reserve’s Instant Payments Service

#39

Post by cvalka »

lotsofpulp wrote: post #31
happymellon wrote: post #27

Earlier quoted context omitted.

Literally my point. Not all banks support Zelle. It's a 3rd party app.

Zelle is owned and operated by the biggest banks in the US, it's basically like using your own bank. You do not even have to use the Zelle app, you can just log into your bank's app and transfer money from there. And sure, there would have been no need for it to exist had the US government done its job 20+ years ago as opposed to waiting until the 2020s, but the reality is that most Americans have been able to instan…

LOL. The Zelle limits are ridiculously low. Most Americans don't have online access to transferring money. Wire and ACH online transfers are usually not available to the average b2c consumer.
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