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>"Hey if you like my stuff consider adding my <public bank account key> to your monthly payments.... Banks specifically DON'T want you doing that because they

>"Hey if you like my stuff consider adding my <public bank account key> to your monthly payments.... Banks specifically DON'T want you doing that because they don't want undesirable businesses funneling money in and out of their banks. I'm sure there are different legal liabilities for different places for different undesirable businesses with that kind of thing. It's probably a potential minefield to let anyone do that indiscriminately. Probably have to track everyone, and then roll back or cancel accounts when you catch the pornographers, or cartels or what have you. (Of course, that brings you back to the problem of randomly cancelled accounts.)

TylerE 8y ago
Really? My credit union offers free unlimited bill pay to anyone. Certain businesses can do it via a direct deposit, but I can send a set amount of money to ANYONE and they will mail a check on the Nth day of the month.
gaius 8y ago
Banks specifically DON'T want you doing that because they don't want undesirable businesses funneling money in and out of their banks Not sure I understand this objection - the recipient of such a transfer would already have to have an account at another bank, and that bank would have to do the full AML/KYC checks anyway. There should be no issues with someone with an account at reputable bank A sending a regular payment to an account at reputable bank B for any purpose.
- Qworg 8y ago
  Banks don't necessarily trust each other and "I thought the other guy did KYC/AML" isn't a defense when the Feds show up.
  - gaius 8y ago
    A bank will KYC/AML other banks too. But two people with accounts at high street banks in economically developed countries should never normally encounter an issue, once they had both passed the initial gatekeeping. Which isn't flawless but should cover the majority of use cases - I mean Patreon isn't Silk Road, is it?
    - Qworg 8y ago
      It isn't the majority they worry about - any individual on the OFAC list or folks laundering money is an enormous risk. While Patreon isn't Silk Road, people can and will try to take advantage of any payment system with weak controls.
cm2187 8y ago
How is that different from bank transfers or credit card numbers? It just reduces the risk of fraud by only sharing a token that can’t be used for anything else. If anything it cuts the middle man and allows the bank to capture a greater share of the fees. The problem is that it has to be international.

TylerE 8y ago

Really? My credit union offers free unlimited bill pay to anyone. Certain businesses can do it via a direct deposit, but I can send a set amount of money to ANYONE and they will mail a check on the Nth day of the month.

gaius 8y ago

Banks specifically DON'T want you doing that because they don't want undesirable businesses funneling money in and out of their banks Not sure I understand this objection - the recipient of such a transfer would already have to have an account at another bank, and that bank would have to do the full AML/KYC checks anyway. There should be no issues with someone with an account at reputable bank A sending a regular payment to an account at reputable bank B for any purpose.

Qworg 8y ago
Banks don't necessarily trust each other and "I thought the other guy did KYC/AML" isn't a defense when the Feds show up.
- gaius 8y ago
  A bank will KYC/AML other banks too. But two people with accounts at high street banks in economically developed countries should never normally encounter an issue, once they had both passed the initial gatekeeping. Which isn't flawless but should cover the majority of use cases - I mean Patreon isn't Silk Road, is it?
  - Qworg 8y ago
    It isn't the majority they worry about - any individual on the OFAC list or folks laundering money is an enormous risk. While Patreon isn't Silk Road, people can and will try to take advantage of any payment system with weak controls.

cm2187 8y ago

How is that different from bank transfers or credit card numbers? It just reduces the risk of fraud by only sharing a token that can’t be used for anything else. If anything it cuts the middle man and allows the bank to capture a greater share of the fees. The problem is that it has to be international.