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The infrastructure is there. The government operates a realtime gross settlement system with ~$1/transaction cost to banks (FedWire). It even has the very nice
by superuser2 11y ago
The infrastructure is there. The government operates a realtime gross settlement system with ~$1/transaction cost to banks (FedWire). It even has the very nice security property of being push-based rather than pull. The problem is that banks all seem to have agreed to charge $25/transaction for it.
- pjc50 11y agoThe problem is that banks all seem to have agreed to charge $25/transaction for it. I believe in America this is called a "free market".
- DrJokepu 11y agoI mean, there is also a free market in the UK, yet Faster Payments Service transaction cost a fraction of what wire transfers cost in America, so what's the difference?
- pjc50 11y agoTo explain the joke, the US system is cartelised, while the UK one is under a bit more political and regulatory pressure to treat customers fairly. (Not that we haven't had a problem with BS fees or the payment protection insurance scandal!)