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The banks have been pushing for a cashless society for awhile now. So once they achieve their goal of preventing me from paying someone else $10 without a 3rd
by kevin_b_er 8y ago
The banks have been pushing for a cashless society for awhile now.
So once they achieve their goal of preventing me from paying someone else $10 without a 3rd party getting a 2-3% fee for the privilege of exchanging money between two private parties, it won't be them getting the 2-3%? Cry me a river.
- mixmastamyk 8y agoHmm, most other countries have free transfers between bank accounts. It's just the US (maybe a few others) still stuck in the stone age.
- gruez 8y agoyou can transfer free between friends using services like paypal, doesn't that count?
- deleted 8y ago[deleted]
- baq 8y agopaypal isn't a bank, though.
- gruez 8y agoGP mentioned: >free transfers between bank accounts does it really matter if it was done through some third party service?
- crooked-v 8y agoAbsolutely, given that Paypal can freeze your money indefinitely for arbitrary reasons (and has a long history of doing so).
- skinnymuch 8y agoDoes it for consumers? I thought it’s only for sellers. That’s also been my experience.
- mixmastamyk 8y agoWhy put another potentially malicious, rent seeking third-party between you and your friend's banks?
- deleted 8y ago[deleted]
- the-dude 8y agoPayPal is registered as a bank in the EU, in Luxembourg if I am not mistaken.
- dkasper 8y agoACH bank transfers are free in the US too, just takes a few days. Personal transfers with Venmo or paypal are free too in most cases. The fees are for credit cards which make up almost all online transactions and have fees everywhere in the world.
- jopsen 8y agoLots of other countries have debit cards linked to accounts with standing credit, instead of the "credit card" that you pay off every month. These debit cards very low fees, sometimes they work as both debit and visa card, so you can use them abroad too.
- dkasper 8y agoWe have debit cards in the US too... that’s how apps like Venmo work.
- jjoonathan 8y agoWho gets the seller fees? In the US, you only get a piece of the action if you use a credit card. Otherwise you still pay the higher, transaction-fee-included price, but you don't get any part of the transaction fee.
- jopsen 8y agoI see many stores with fees for using foreign credit cards. Like ~1 USD.. Or I guess the seller pockets the fee.
- dragontamer 8y ago> ACH bank transfers are free in the US too, just takes a few days. One-day ACH has been standardized and has begun to be rolled out.
- nicoburns 8y agoPerhaps, but in the UK I can do instant bank transfers for free. Very useful for settling small debts between friends and such things.
- tialaramex 8y agoYup. Woke up this morning, FB message with a spreadsheet. Some friends going on holiday together, one has taken responsibility for the house we're renting, got the bill today, cut it up, sent it out. I copy-posted the amount into a web form from my bank and it was in their account later this morning at zero cost to either of us.
- JTbane 8y agoIt still vexes me that I can't instantly transfer money from my bank to a friend's account without paying, or using a third-party like Venmo or Paypal.
- frockington 8y agoMost banks are using Zelle now, all but instant in my experience
- pishpash 8y agoZelle is restrictive, daily limits are quite low. It's also not always instant, depends on how much risk your bank considers you.
- wakkaflokka 8y agoI ran into this issue today. Frustratingly low limits ($1000) for my bank.
- mwexler 8y agoAlso, Zelle is a third party, but one owned by a bank collective so it gets a deeper integration. Potato, Potahto.
- s_dev 8y ago>The banks have been pushing for a cashless society for awhile now. Since the first loan was regulated banks have been pushing for a cashless society. Your comment is very much an understatement. It is the holy grail of the financial industry. Because of the liquidity ratio. Banks are supposed to have 10% of their total lending in cash. This is to prevent a run on the bank. No cash means banks can lend an infinite amount of money as they aren't bound to the liquidity ratio. Basically it removes the ceiling from what a bank can earn as there can never be a run on the bank.
- aninhumer 8y agoI think you're conflating cash meaning the physical currency and cash meaning the liquid asset here? A cashless society is about the former, and as far as I know, the 10% limit is about the latter? (EDIT: I believe in some systems the banks do technically have physical currency in the form of special high value notes, but they're not really cash in any practical sense)
- gruez 8y ago>No cash means banks can lend an infinite amount of money as they aren't bound to the liquidity ratio. that's not how fractional reserve works. banks have capital requirements (some of which may be cash), not cash requirements. moreover, even if it was somehow cash requirements, they're not obligated to hold physical cash.
- cat199 8y agoTo all the downvoters of this persons comment quibbling about the word 'cash' - please focus on the general concept of 'how can you have a bank run without a commodity store of value outside of the bank account itself' please...