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What Happens When You ACH a Dead Person?

moderntreasury.com

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Re: What Happens When You ACH a Dead Person?

#91

Post by nullc »

saarons wrote: post #29
itcrowd wrote: post #12

This reminds me of a question I've had for the longest time (+): why is it that in the US wiring money between accounts is so expensive or difficult? Whole ecosystems of companies have sprung up (PayPal and Stripe come to mind, and apps such as TransferWise) to reduce the friction when the banks could easily set up a way cheaper system that would actually be better (privacy etc.) for the consumer. The EU seems to be…

CTO of Modern Treasury here. Banks are actually starting to setup a new payment system between themselves called Real-Time Payments (RTP) which has a lot of the same benefits as wire transfers. RTP is 24/7, instant, and (from our experience) much cheaper than wire transfers. It's starting to roll-out across more banks and currently ~50% of bank accounts can receive RTP transfers [1]. I just cashed out on Venmo the ot…

> main downsides is the $25,000 cap

I suppose this isn't inflation indexed, so RTP will become increasingly useless over time? -- halving in 35 years per fed plans and much sooner under monetary policy twitter-proposed by the president?

Re: What Happens When You ACH a Dead Person?

#92

Post by coldpie »

reaperducer wrote: post #51
grecy wrote: post #15

Earlier quoted context omitted.

Moving from Australia to Canada/US felt like going back in time 20 years when it came to banking. Even ten years ago in Australia I could do more with my online banking than I can today in North America. Checks are for what now?

Checks are for what now? For me this week: Paid for a city license, paid the cat sitter, paid for a small magazine subscription, made a charitable donation, and paid the rent. The cat sitter and the charity were check only. No other option. The magazine has a PayPal option, but I don't trust PayPal. The city license could have been done with a card online, but I'm not interested in setting up yet another account with…

I started renting a studio a couple months back. They gave the option to pay with a paper check or with a credit/debit card online. Online transaction came with a $20/statement "convenience fee". Meanwhile a mailed paper check is $0.50 including postage. Paper check it is.

Re: What Happens When You ACH a Dead Person?

#93

Post by thfuran »

scarejunba wrote: post #58
reaperducer wrote: post #51

Earlier quoted context omitted.

Checks are for what now? For me this week: Paid for a city license, paid the cat sitter, paid for a small magazine subscription, made a charitable donation, and paid the rent. The cat sitter and the charity were check only. No other option. The magazine has a PayPal option, but I don't trust PayPal. The city license could have been done with a card online, but I'm not interested in setting up yet another account with…

I know. In America, it's such a bloody nightmare with the cheques everywhere. This should obviously be first-class supported by banks. If I could just set up direct debit that would be so much better. It would all show up on one screen, I could see what this months aggregate direct debits are, what they are to each account. You could even just use the 'Transfer Money' functionality to one-time things if you don't wan…

Yeah, it's hard to secure a system where paying someone involves giving them your name, address, bank account and routing number, and signature.

Re: What Happens When You ACH a Dead Person?

#94

Post by pbreit »

js2 wrote: post #79
saarons wrote: post #29

Earlier quoted context omitted.

CTO of Modern Treasury here. Banks are actually starting to setup a new payment system between themselves called Real-Time Payments (RTP) which has a lot of the same benefits as wire transfers. RTP is 24/7, instant, and (from our experience) much cheaper than wire transfers. It's starting to roll-out across more banks and currently ~50% of bank accounts can receive RTP transfers [1]. I just cashed out on Venmo the ot…

There's same day ACH, but I have no idea how widespread it is yet: https://www.nacha.org/same-day-ach-resource-center Anecdotally, I recently moved my banking to a discount broker and my paycheck is now credited to my account the night before. I don't know if that has anything to do with same-day ACH. Also anecdotally, Ally takes 5 business days (!) to open a CD via ACH even for an already verified bank. Definitely f…

Businesses use ACH extensively to pay each other same-day (and debit consumer bank accounts). But it has never caught on for consumer "push" payments.

Re: What Happens When You ACH a Dead Person?

#95

Post by [deleted] »

edubs25 wrote: post #40
saarons wrote: post #29

Earlier quoted context omitted.

CTO of Modern Treasury here. Banks are actually starting to setup a new payment system between themselves called Real-Time Payments (RTP) which has a lot of the same benefits as wire transfers. RTP is 24/7, instant, and (from our experience) much cheaper than wire transfers. It's starting to roll-out across more banks and currently ~50% of bank accounts can receive RTP transfers [1]. I just cashed out on Venmo the ot…

Sad part that I've seen... worked on an implementation of Visa push payments at a TPA/ISO (I think it was formally called something else by Visa [Visa Direct?]) - it was designed as a real time payment system to make small payments to vendors or contractors. In order to settle everything at the end of the day, we were using ACH and wires behind the scenes to re-balance the source accounts. It was really comical IMO .…

[deleted]

Re: What Happens When You ACH a Dead Person?

#96

Post by clumsysmurf »

itcrowd wrote: post #12

This reminds me of a question I've had for the longest time (+): why is it that in the US wiring money between accounts is so expensive or difficult? Whole ecosystems of companies have sprung up (PayPal and Stripe come to mind, and apps such as TransferWise) to reduce the friction when the banks could easily set up a way cheaper system that would actually be better (privacy etc.) for the consumer. The EU seems to be…

This could be changing with FedNow https://www.federalreserve.gov/newsevents/pressreleases/othe...

You may want to read the findings of the Faster Payments Task Force (FPTF) https://fasterpaymentstaskforce.org/

Re: What Happens When You ACH a Dead Person?

#97

Post by dexterdog »

saarons wrote: post #42
itcrowd wrote: post #37

Earlier quoted context omitted.

Thank you for the RTP information! Had not heard of it yet. The fees look very reasonable ($0.01-$0.045 depending on type of transaction) and they provide a level playing field (flat-fee, no discounts for volume) I also heard someone say at some point that Americans are very wary of having people transfer money to their bank account. Not sure what the rationale is (maybe taxes or afraid of criminal money?) but I was…

Historically Americans have been wary of handing out their bank account information because that's all the information needed for a bad actor to issue an ACH debit and pull money from your account. The NACHA guidelines have very strict rules around this and the payment protections are rather strong but it's still a pain to deal with as a consumer. RTP itself is non-reversible so when someone sends you an RTP payment…

You hand out your bank account information every time you give somebody a check

Re: What Happens When You ACH a Dead Person?

#98

Post by orf »

ThrustVectoring wrote: post #72
itcrowd wrote: post #12

This reminds me of a question I've had for the longest time (+): why is it that in the US wiring money between accounts is so expensive or difficult? Whole ecosystems of companies have sprung up (PayPal and Stripe come to mind, and apps such as TransferWise) to reduce the friction when the banks could easily set up a way cheaper system that would actually be better (privacy etc.) for the consumer. The EU seems to be…

A partial answer is also the US's approach to banking regulation. First off, the US prioritizes having many small community banks. The US has 4,909 banks, while Japan has 198. This necessarily makes setting up inter-operation between banks more complicated. Second, US banks are regulated on both a Federal and State level. A system that works for a bunch of banks in California may not be viable for interoperation with…

> The US has 4,909 banks ... This necessarily makes setting up inter-operation between banks more complicated.

The EU has 6,250 banks though. Each with different countries. With 28 different languages, cultures and governments, with far more differences than the states in the USA.

You're really arguing that it's harder to unify that in the homogeneous USA than it is in Europe? Come now.

Re: What Happens When You ACH a Dead Person?

#99

Post by lifeisstillgood »

itcrowd wrote: post #12

This reminds me of a question I've had for the longest time (+): why is it that in the US wiring money between accounts is so expensive or difficult? Whole ecosystems of companies have sprung up (PayPal and Stripe come to mind, and apps such as TransferWise) to reduce the friction when the banks could easily set up a way cheaper system that would actually be better (privacy etc.) for the consumer. The EU seems to be…

The not-answer answer is fairly simple - negative interest rates are "natural".

If I give you a car / boat / house / gold bar to look after you will charge me a fee for the effort.

Where money is concerned there has been a magic trick - initially banks took your money and paid you a fee (interest rates).

However they sneakily make more money from other things

- Just offering less interest than you earn (competed away)

- Account fees (competition eats those away)

- Taking three days to move money (regulators eat those away in EU, in US finally the Fed is killing it off - soon)

But overall, giving someone else money costs us money. Positive interest rates it seems are a thing of the past.

Re: What Happens When You ACH a Dead Person?

#100

Post by selimthegrim »

asadlionpk wrote: post #30
itcrowd wrote: post #12

This reminds me of a question I've had for the longest time (+): why is it that in the US wiring money between accounts is so expensive or difficult? Whole ecosystems of companies have sprung up (PayPal and Stripe come to mind, and apps such as TransferWise) to reduce the friction when the banks could easily set up a way cheaper system that would actually be better (privacy etc.) for the consumer. The EU seems to be…

I was confused at how bad this is in the US compared to where I come from (Pakistan). I have to rely on Paypal and Venmo because the online banking is so backwards here.

How do you send or receive money from home?
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