41–50 of 81 posts
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I'll add that Zelle has significant volume limits and is only roughly real time.
What volume limits have you experienced with Zelle?
If you're a business, I think you can get up to a $100k/mo limit - not enough to run most firms.
I was listening to a podcast a few weeks ago (Planet Money) and was genuinlely shocked at how poor the US payments network is in relation to here in the UK. Most bank transactions here complete within 2 hours (faster payments service) and are completely free.
The US Federal Reserve is currently trying to work towards faster payments - and seems to want to let private industry solve the problem. It really is terrible though and has been for a long time.
I do keep hearing about "Same Day ACH" which was rolled out and phases and phase 3 was supposed to be done on March 16, 2018.
https://www.nacha.org/rules/same-day-ach-moving-payments-fas...
I was listening to a podcast a few weeks ago (Planet Money) and was genuinlely shocked at how poor the US payments network is in relation to here in the UK. Most bank transactions here complete within 2 hours (faster payments service) and are completely free.
I think they've reported on ACH a few times each year and there never seems to be any incentive (from the group maintaining ACH) to improve it. What's worse is that it not only takes a few days, I often don't see it show up until a few days after that (back dated to when it was supposed to be received!).
I was listening to a podcast a few weeks ago (Planet Money) and was genuinlely shocked at how poor the US payments network is in relation to here in the UK. Most bank transactions here complete within 2 hours (faster payments service) and are completely free.
VCs in the US were amazed when we told them that SPEI transfers costed $.4 USD and the money was moved in 15 minutes or less.
Fast forward years later I work in a company that uses ACH, I have came to know some of its internals, and man how bad it is... taking up to 5 days to clear a transaction, and never really giving you an ACK signal (but you have to wait and pray not to get a NACK).
Sometimes the USA surprises me the bad way.
Earlier quoted context omitted.
The US Federal Reserve is currently trying to work towards faster payments - and seems to want to let private industry solve the problem. It really is terrible though and has been for a long time.
Historically, in EU the private industry chose not to solve the problem because (just like in USA) the problem is profitable for them. Sometimes people need fast payments and you can charge them lots of money for that; if everyone's basic payments are fast and cheap, then you lose that revenue. The point of change in EU was legally mandated changes (PSD) which (after a transition period, something like 2 years maybe?…
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A wire transfer is a little different than an ACH. Some transactions seem to require wire transfer, not sure if that's just momentum or there is some other driving reason for the choice. https://www.thebalance.com/ach-vs-wire-transfer-3886077
Wires are required at times because they're "good funds" faster - ACH may take up to 6 days to clear in bad cases. Also, wires can't be reversed (generally). If that's a good or a bad thing is dependent on the transaction and transactors.
Big banks will have the money next business day at the latest, Tiny correspondent banks in alaska might be as far behind as an extra day or two.
There's a class of return that's supposed to come within 3 days, (NSF/No Account/Closed Account) that's usually what the banks are waiting for, but fraud related returns can be up to 60 calendars later by the rules.
Does ACH cost? I know in the UK we have faster payments, it usually shows up a few seconds later in the target account, and it's free. I've mostly stopped using paypal as a result.
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I seem to remember reading somewhere the transport channel used to be nightly FTP of these files in a cron job. Is that still true, and if so, how do they manage to secure something like that?
SFTP - I can't say what's happening today, but 8 years ago this was the only channel available when I added an ACH payment system to B2B accounting system. 80 column text files SFTP'd overnight to the company's bank. I also had a couple of 200 page dead tree books on my desk describing the process & formats. I joked that it was originally designed for delivery by telegraph. I'm still not convinced I was wrong.
I was listening to a podcast a few weeks ago (Planet Money) and was genuinlely shocked at how poor the US payments network is in relation to here in the UK. Most bank transactions here complete within 2 hours (faster payments service) and are completely free.
About 3 years ago I was raising money in the USA for a Mexican FinTech startup. Said startup uses Mexico's equivalent of ACH to transfer money (it is called SPEI). VCs in the US were amazed when we told them that SPEI transfers costed $.4 USD and the money was moved in 15 minutes or less. Fast forward years later I work in a company that uses ACH, I have came to know some of its internals, and man how bad it is... ta…
Does anyone know what Banks and/or services use same-day ACH? The article says same-day volume was up to $160B last year, but I've yet to see anything faster than next-day ACH.
ACH in the EU is generally same day. The US is super behind the times in that regard. The reason that it’s next day is that for most banks, the process of doing an ACH transfer is to effectively SFTP a file with the amount to transfer and account details to the receiving bank, and they batch process them nightly. Also, with this system, there is no difference between a direct deposit and direct withdrawal. One just h…
For folks with reasonable transaction volumes per year I highly recommend both this, electronic payment systems and positive pay.