11 ms·
It's weird though, because something like ACH desperately needs to be replaced. It's slow, and compared to whatever they have in the EU, it's slow and embarrass
by Dirlewanger 7y ago
It's weird though, because something like ACH desperately needs to be replaced. It's slow, and compared to whatever they have in the EU, it's slow and embarrassing. Not saying it needs to be blockchain (I'd prefer it isn't), but taking lessons from it would be beneficial. In the past ~30 years, the American business ecosystem cares less and less about standards and more about pushing their own standards/formats and not giving a fuck about interoperability.
- 420codebro 7y agoCan you please elaborate on what ACH currently lacks? ACH is for low priority (and low value) stuff. Fedwire (an RTGS) is for high-priority / urgent transactions (securities and the like.
- wil421 7y agoSame day ACH is available if you have a bank that supports it. My small credit union has same day (and free) ACH if I get it in by noon.
- kalleboo 7y agoThe new EU SEPA system launched in 2017 has 10-second settlement and it's available 24/7. You're not going to compete with Venmo, PayPal and Libra with "same day if I get it in by noon"
- wil421 7y agoZelle has instant settlement for banks that use it, including two of the three banks I use. ACH goes through the FED before it is processed by the receiving bank. Is SEPA sent to the ECB before clearing? I’ve worked in Fintech for 6+ years. Banks are dinosaurs and the US banks are terrible at adopting new processes/tech. In the US we are in a standard war with ACH, Zelle, and other payment schemes fighting for market share.