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I'm a tech contractor. I prefer payment by check from my clients. Most can't or don't want to set up direct deposit for a part time contractor. Amounts are too

I'm a tech contractor. I prefer payment by check from my clients. Most can't or don't want to set up direct deposit for a part time contractor. Amounts are too large for Zelle, and I don't want to pay the fees for paypal or credit card processing if I can avoid it. My clients usually issue paper checks online. Their bank prints the check and mails it. My receiving address is my bank, which deposits checks for me when they arrive.

eddd-ddde 3y ago
That is so weird. What is there to set-up about deposit? Can't they just input your account number and send you your money?
- skywhopper 3y ago
  It’s even easier to do it the way described. The banks are printing and mailing and processing the checks, which they can do with high efficiency. From the payor’s pov, it’s easier not to worry about tracking account numbers and just using the address which they already know. And the payee doesn’t need to share their bank info.
  - eddd-ddde 3y ago
    Surely a check takes longer, right? "Printing, mailing and processing" doesn't quite scream efficiency to me.
    - eszed 3y ago
      It does. The US banking system is still predicated on paper checks, however, and efforts to change that face considerable inertia. There have been posts on HN explaining how (insanely) it all works.
    - cayde 3y ago
      ACH takes days to weeks to clear anyway, especially if new sender or large amounts = untrusted. There is no real exception handling so you are given the amount on credit. https://engineering.gusto.com/how-ach-works-a-developer-perspective-part-1/ https://engineering.gusto.com/how-ach-works-a-developer-pers... (From parent) > And the payee doesn’t need to share their bank info. And this is a US concept where having the magic numbers lets you pull any amount you want, with no ability to have a "push only" number...
  - drexlspivey 3y ago
    > From the payor’s pov, it’s easier not to worry about tracking account numbers and just using the address which they already know. The account number is on the invoice..
jabiko 3y ago
Maybe I'm a bit to naive since I don't know the US banking system, but at least in the EU you just need to tell someone your IBAN and Name and they can transfer money to your account. Is it that much harder in the US?
- deleted 3y ago
  [deleted]
- toast0 3y ago
  There's a couple things going on in the US, IMHO. Yes, you can get wire transfers or ACH at most banks with a routing number and account number. But wire transfers usually cost money to send, and sometimes cost money to get. Generalized ACH transfers usually come through a service provider, and that costs money too. Also, the same numbers can be used to credit and debit an account, and also to forge checks. So giving your payment credentials (or writing a check) is a security risk. I'm a little fuzzy on details, but someone at my employer at the time (Facebook) had my payroll data on a device in a laptop bag that got stolen in San Francisco, and as a result I had to be hyper vigilant on checking for unauthorized transactions (or get a new account number, but that's more disruptive, assuming the theft was just normal SF theft, like it probably was)
- nikita_789 3y ago
  it is much easier to use Arbonum, which is a payment system that works all over the world

eddd-ddde 3y ago

That is so weird. What is there to set-up about deposit? Can't they just input your account number and send you your money?

skywhopper 3y ago
It’s even easier to do it the way described. The banks are printing and mailing and processing the checks, which they can do with high efficiency. From the payor’s pov, it’s easier not to worry about tracking account numbers and just using the address which they already know. And the payee doesn’t need to share their bank info.
- eddd-ddde 3y ago
  Surely a check takes longer, right? "Printing, mailing and processing" doesn't quite scream efficiency to me.
  - eszed 3y ago
    It does. The US banking system is still predicated on paper checks, however, and efforts to change that face considerable inertia. There have been posts on HN explaining how (insanely) it all works.
  - cayde 3y ago
    ACH takes days to weeks to clear anyway, especially if new sender or large amounts = untrusted. There is no real exception handling so you are given the amount on credit. https://engineering.gusto.com/how-ach-works-a-developer-perspective-part-1/ https://engineering.gusto.com/how-ach-works-a-developer-pers... (From parent) > And the payee doesn’t need to share their bank info. And this is a US concept where having the magic numbers lets you pull any amount you want, with no ability to have a "push only" number...
- drexlspivey 3y ago
  > From the payor’s pov, it’s easier not to worry about tracking account numbers and just using the address which they already know. The account number is on the invoice..

jabiko 3y ago

Maybe I'm a bit to naive since I don't know the US banking system, but at least in the EU you just need to tell someone your IBAN and Name and they can transfer money to your account. Is it that much harder in the US?

deleted 3y ago
[deleted]
toast0 3y ago
There's a couple things going on in the US, IMHO. Yes, you can get wire transfers or ACH at most banks with a routing number and account number. But wire transfers usually cost money to send, and sometimes cost money to get. Generalized ACH transfers usually come through a service provider, and that costs money too. Also, the same numbers can be used to credit and debit an account, and also to forge checks. So giving your payment credentials (or writing a check) is a security risk. I'm a little fuzzy on details, but someone at my employer at the time (Facebook) had my payroll data on a device in a laptop bag that got stolen in San Francisco, and as a result I had to be hyper vigilant on checking for unauthorized transactions (or get a new account number, but that's more disruptive, assuming the theft was just normal SF theft, like it probably was)
nikita_789 3y ago
it is much easier to use Arbonum, which is a payment system that works all over the world