Fed’s new instant payment system could be trouble for PayPal, Venmo::The Fed’s goal is to connect 9,000 financial institutions nationwide.

96 points

This is wild. Here in the UK we just transfer money from bank to bank in an instant using the banks own app.

permalink
report
reply
50 points
Deleted by creator
permalink
report
parent
reply
7 points

Here in the US it’s only instant if it’s coming out of your account.

If it’s coming out of the bank’s account

Can you please explain the difference here, because that doesn’t make sense to me. When am I ever transferring money out of the banks account instead of mine?

permalink
report
parent
reply
4 points

This is what banking looks like if you are poor, unfortunately.

Those cash checking places are fucking evil. Then the payday loan companies with usury…

permalink
report
parent
reply
0 points

What bank do you have that charges $35 for a transfer?

I transfer between b of a and chase bank, both known for having decently high fees, without any of those fees.

The $35 amount I’ve only seen with overdrafting. Do you overdraft every single transfer?

permalink
report
parent
reply
7 points
*

That was sarcasm.

permalink
report
parent
reply
16 points
*
Deleted by creator
permalink
report
parent
reply
5 points

We all know that “companies making money” is the reason

permalink
report
parent
reply
13 points

Same here in Canada, e-transfer with 0 fees is pretty normal.

permalink
report
parent
reply
0 points

It’s been a while since I did it but you can authorize it so all e-transfers are automatically accepted and deposited. I can’t think of a scenario where that would be a bad thing.

permalink
report
parent
reply
2 points

Yeah, I have auto-deposit enabled.

permalink
report
parent
reply
10 points

How long has it been that way? We’ve never had that here in the states…

permalink
report
parent
reply
18 points

It’s so normal that I can’t actually remember it ever being any different. Even before the advent of mobile banking it was the same with internet banking. Instant transfers.

permalink
report
parent
reply
7 points
*

In the US we have Zelle which is free and instant, but it’s still a third party your bank integrates

permalink
report
parent
reply
5 points
*

In Australia we’ve had free next business day transfers for as long as I can remember. Decades.

The transition to transfers that clear in seconds was happened gradually as bottlenecks were removed from the infrastructure one by one. Some transactions were instant a couple decades ago, but it’s only in the last few years that most transactions are instant here.

These days, Visa/Mastercard are basically the slowest way you can pay someone. It’s still the most commonly used option though, since it has the best fraud protection.

permalink
report
parent
reply
1 point

I do this in the States. Maybe you haven’t noticed the option on the bank’s site? Also make sure to use a credit union.

permalink
report
parent
reply
9 points

And I assumed it was the same everywhere!

permalink
report
parent
reply
7 points

Same in Poland. That, and Blik system which let’s you send money to a phone number (if it’s also registered with Blik) and it’s actually instant. Not “next transfer window” like Elixir transfers, instant.

And yes, completely free.

permalink
report
parent
reply
6 points

The US has this, it’s called Zelle, every bank seems to have it, and it’s instantaneous. For some reason it’s just not popular, probably because Paypal and others are already entrenched.

permalink
report
parent
reply
4 points

Same in Canada. It’s like going back in time when crossing the border when it comes to banking and payment.

permalink
report
parent
reply
3 points

In Spain we have Bizum - transfer money using a persons mobile phone number (as long as you’re both registered with your bank). Instant and free

permalink
report
parent
reply
-1 points

Same with us. I don’t know what these other folks are talking about. I transfer seemlessly between my accounts at different banks.

permalink
report
parent
reply
45 points

While I’ve used PayPal for, holy shit, decades… my recent need to move cash around with my Gen Z children caused me to venture into Venmo and CashApp. While I’m skeptical of the proper execution of anything new the federal government introduces, I can’t imagine they could create a WORSE experience than these new-age, middle-man processors. I’ve had to call my bank more times in the last two weeks to unlock fraud alerts than I have in the past twenty years. Then, after doing that, the damned processors themselves start declining $5 transactions for no apparent reason. I’d sooner poke myself in the eye than try to make a payment.

permalink
report
reply
23 points

Venmo is owned by PayPal.

permalink
report
parent
reply
13 points

While that is true, I have also had issues with Venmo that I have never had with PayPal. I have no clue what the back-end difference is, but I stopped using Venmo after they decided a small payment to a friend was suspicious and locked my account. Meanwhile, payments to that same friend via PayPal have been fine.

permalink
report
parent
reply
12 points

I’ve been locked out of my PayPal since 2005. On their end my account is somehow both locked and nonexistent, creating a loop of error messages. Last time I tried to have a real human fix it they basically shrugged, and that was about 7 years ago haha

permalink
report
parent
reply
44 points

Welcome to 2003!

-Signed: Canada.

permalink
report
reply
7 points

For real, we’ve had e-transfer forever…

permalink
report
parent
reply
6 points

We had bank to bank and bank to merchant over the internet in 1996. And by 2003 the interac e-transfer for customer to customer had rolled out countrywide.

The history is actually pretty impressive.

permalink
report
parent
reply
4 points

Wait. US banks don’t have e-transfer???

permalink
report
parent
reply
4 points

Yeah we’re in the fucking stone age over here. No federal e-transfer, all private healthcare, practically no public transport besides in some of the bigger cities, and even that isnt very good most of the time. Also still using imperial, way behind on a lot of tech legislation, basically relying on EU rules to carry over. There’s a reason we’re the 3rd world country of 1st world countries

permalink
report
parent
reply
43 points
*

Finally, it’s ridiculous we have to pay fees to a private company just to easily transfer money.

Finger crossed it’ll be compatible with IBAN/SWIFT banking so we can actually be a part of the International community.

permalink
report
reply
10 points

So in the UK we have had a standard free “instant” payment system between banks for what feels like a couple of decades now (and compatibility with the IBAN for at least half that time). Given that, how has this taken so long? What did people do before Venmo?

permalink
report
parent
reply
9 points

Yup, as if a ghost showed up and took a quarter for every dollar you gave to someone.

permalink
report
parent
reply
43 points
*
Deleted by creator
permalink
report
reply
23 points

In other countries the incentive is to get you to pay your taxes, in the US the incentive is to get you to pay tax filing companies.

permalink
report
parent
reply

Technology

!technology@lemmy.world

Create post

This is a most excellent place for technology news and articles.


Our Rules


  1. Follow the lemmy.world rules.
  2. Only tech related content.
  3. Be excellent to each another!
  4. Mod approved content bots can post up to 10 articles per day.
  5. Threads asking for personal tech support may be deleted.
  6. Politics threads may be removed.
  7. No memes allowed as posts, OK to post as comments.
  8. Only approved bots from the list below, to ask if your bot can be added please contact us.
  9. Check for duplicates before posting, duplicates may be removed

Approved Bots


Community stats

  • 17K

    Monthly active users

  • 12K

    Posts

  • 543K

    Comments