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Faster Transfers Beta (US only)

support.stripe.com

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Re: Faster Transfers Beta (US only)

#31

Post by seanmccann »

jlees wrote: post #30
seanmccann wrote: post #21

Earlier quoted context omitted.

It all comes down to risk. The longer they can sit on the money, the less risk. Stripe's entire business revolves around risk management, hence why it's 7 days, which is longer than others (their banking partners).

Is this the only reason bank transfers take so much longer in the US than UK? Why are UK banks happy to take the risk? (I'm genuinely curious and don't know much about why the US is slower.)

It's the risk of the credit card charge, not necessarily the actual transfer of money itself to the merchant. It takes likely takes Stripe a few days to get the money, and in order for them to operate the way they do (sign up and charge cards right away), they eat the risk of rogue merchants and other issues like chargebacks.

Re: Faster Transfers Beta (US only)

#33

Post by notastartup »

tibbon wrote: post #13
spellboots wrote: post #10

Earlier quoted context omitted.

Not sure how PayPal could be faster - money is transferred instantly to my bank account after receiving it through PayPal. Is that a UK only thing?

Yea, in the US its a vague 3-5 days.

Same in Canada, usually 4~5 days.

Re: Faster Transfers Beta (US only)

#34

Post by praxeologist »

jhoon wrote: post #12
smackfu wrote: post #6

Earlier quoted context omitted.

Isn't this 7-day hold just an internal Stripe policy though? The new faster transfers are just the normal ACH speed.

You're correct -- Stripe self-imposed the seven-day delay early in its development. While we may have chosen the seven-day delay, there are still a number of real challenges in moving to a faster transfer schedule. For example, we need to make sure funds are received from our banking partners in time to transfer them to our users. (I work at Stripe)

I don't see why Square can start the ball rolling the next day but you need anything near 7 days delay. I figured it was just a way to make more money.

Re: Faster Transfers Beta (US only)

#35

Post by ulfw »

sim0n wrote: post #29
ajtaylor wrote: post #25

Earlier quoted context omitted.

The last time I did a wire transfer in the US (admittedly a couple years ago now) it was anything but instant. IIRC there was a lot of manual work that had to be done behind the scenes to complete the transaction. And you have to do into a branch to do it as well - no internet banking!

I've sent many wires online before in the US. They were definitely not instant and took up to a few days to clear but could be sent online.

Exactly what I meant. I have done many transfers in the US as well. I think the fastest was three days for me. The average more like 4-5 biz days (which ended up being a whole week as the weekend was in between).

Re: Faster Transfers Beta (US only)

#37

Post by lucaspiller »

DrJokepu wrote: post #15
spellboots wrote: post #10

Earlier quoted context omitted.

Not sure how PayPal could be faster - money is transferred instantly to my bank account after receiving it through PayPal. Is that a UK only thing?

The kind of near-instant, cheap money transfer provided by the Faster Payments Service system in the UK is actually fairly uncommon elsewhere in the world. If PayPal still used BACS it would take 3 working days even in the UK for PayPal payments to clear on your bank account.

Just to clarify for anyone who isn't familiar: With Faster Payments you can make a transfer between any two accounts of different banks and it will arrive within 4 hours. It's usually free too and works 24/7.

Re: Faster Transfers Beta (US only)

#38

Post by rhc2104 »

ulfw wrote: post #35
sim0n wrote: post #29

Earlier quoted context omitted.

I've sent many wires online before in the US. They were definitely not instant and took up to a few days to clear but could be sent online.

Exactly what I meant. I have done many transfers in the US as well. I think the fastest was three days for me. The average more like 4-5 biz days (which ended up being a whole week as the weekend was in between).

ulfw,

I believe you did an ACH transfer instead of an American wire transfer. Wire transfers do not take multiple days in America, but they cost a lot of money ($10-30).

So there are ACH transfers, which are much slower, and there are wire transfers, which are somewhat slower and expensive.

Re: Faster Transfers Beta (US only)

#40

Post by zabaki »

unfunco wrote: post #8
zabaki wrote: post #7

Actually just read a few talks by danes in the financial council in Denmark. They are currently reconstructing the entire payment infrastructure to allows realtime transfers of payments. For payments under $100.000, transfers are done three times a day, as is seen with services such as MobilePay (Venmo wannabe) that i believe are considered a e-money institution. If anyone is interested then i can provide the links t…

Not to sound pedantic, but three times a day is not realtime. In the United Kingdom at least, transferring money from one bank account to another at the same bank is instant (pretty much sub-second) transaction and from one bank account to another at a different bank is generally processed within fifteen minutes, nearly all UK banks support Faster Payments[0]. [0] http://en.wikipedia.org/wiki/Faster_Payments_Service

Youre right. Real time tranaction is simply what The bankers here in denmark called it. Shows the level of mis-mash between expectations from consumers and the financial sector (in my country at least)
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