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There's a lot going on behind the scenes that we don't see. The bank is not wiring your money instantly. As I understand it, it takes 2-3 days for your bank to
by legitster 4y ago
There's a lot going on behind the scenes that we don't see.
The bank is not wiring your money instantly. As I understand it, it takes 2-3 days for your bank to do the actual security confirmation. What Apple is probably doing is effectively floating you a line of credit assuming that the ACH goes through. And your bank is probably passing you along the transaction in a "pending" state.
There are a lot of security checks just to be in the ACH system. Ask someone who does payroll what it takes to set up direct deposit. Just having the numbers ain't enough even to put money into an account.
It's a bit analogous of how TLS/SSL work. Yes, you can just issue your own self-signed certificate. But that doesn't mean anyone will trust it.
- ejstronge 4y ago> Just having the numbers ain't enough even to put money into an account. Not sure what you mean by that - having the numbers would seem to be the only thing needed to add money into an account.
- somehnguy 4y agoYeah - 10+ years ago I saved the routing/account number off my last check in my bank provided checkbook into my password manager. Whenever I need to pay via ACH for anything I just copy and paste those numbers - works fine.
- legitster 4y agoFor the bank, yes. When I put my ACH details into my Cash app, or Apple pay, or whatever - I am not actually directly creating an ACH transaction. The two organizations are still going to do the transaction on my behalf.
- wiredfool 4y agoACH is overnight. Any 2-3 day thing is the bank doing risk management. There's a presumption of success, and if there's an issue, you'll get a return. There's no 'pending' state on ACH. It's done in one shot, in as little as 94 characters.
- legitster 4y agoSure, I was specifically referring to OPs example of adding funds to an Apple wallet.
- jopsen 4y ago> There are a lot of security checks just to be in the ACH system. But most of them depend on the customer reviewing their transactions and reporting fraud. Otherwise, it can and will go undetected. I personally don't care to review my transactions, it's a hassle, simple 2FA would do away with it. I live in Denmark, we have similar systems for automatic payment, but at-least it now let's me see who has a mandate to withdraw money from me on a monthly basis. That said, it still a sorry state of affairs. The EU mandated 2FA on all internet shopping, this works, it got done, it's ugly and some of the 2FA systems look sketchy, but online shopping frequently involves an app or a text message for authentication.
- legitster 4y agoThere's a ton of misinformation in this thread - this is not at all what ACH is. ACH is specifically how banks move money between accounts. It's not at all analogous to wire transfers or more generally payments. ACH being public information is a bit like nameservers being public.