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As I understand it in 2021 these micro deposits or a similar control will become mandatory (date delayed from Jan 2020), but for the time being it's optional. I
by smarri 7y ago
As I understand it in 2021 these micro deposits or a similar control will become mandatory (date delayed from Jan 2020), but for the time being it's optional. I don't see why a bank won't allow an ACH payment from one account to another - that's what the system is made for right?
- clintonb 7y agoThe new rule only applies to debuts (e.g., you pull money from my account, rather than I push money to yours). See https://www.nacha.org/rules/supplementing-fraud-detection-standards-web-debits https://www.nacha.org/rules/supplementing-fraud-detection-st.... Most banks have some form of P2P transfer such as Zelle or Popmoney. If you want to pay a business, they push you toward a bill pay service that often mails a physical check. My guess is that ACH cuts into fees earned from wire transfers. Additionally, giving everyone the ability to send funds to any other random account increases the bad outcomes of a login being compromised, or someone inputting the wrong account number.
- smarri 7y agoI think you're right on the ACH Vs Wire Fees earned by banks - from what I've seen the banks earn many many multiples on Wires. Although I understand that real time and faster payments are being explored as an alternative to Wires which may take some of this share if the schemes get the network effect via all banks signing up to it.
- clintonb 7y agoYep! The big banks are signed up for RTP. We consumers should start seeing it sometime this year. https://www.theclearinghouse.org/payment-systems/rtp https://www.theclearinghouse.org/payment-systems/rtp Edit: Some customers have had access since last year: https://www.jpmorgan.com/country/US/en/detail/1320572715530 https://www.jpmorgan.com/country/US/en/detail/1320572715530.