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Will this integration have the same limits as Zelle? I tried to send my mother some money but Zelle said I was only allowed to send $1,000 and that I "may" be a

by hiatus 2y ago

Will this integration have the same limits as Zelle? I tried to send my mother some money but Zelle said I was only allowed to send $1,000 and that I "may" be able to send more in the future after more payments to that contact. A wire has no such limitation and can be practically "instant" with same-day settlement if you send it early enough.

toomuchtodo 2y ago
Max value transfer for the system is currently $500k, although most institutions are starting at $100k. To move value is $0.045, to request payment is $0.01 (charged to the institution plugged into the rails, not necessarily the financial services customer). https://www.frbservices.org/news/press-releases/012722-fednow-pricing-announcement https://www.frbservices.org/news/press-releases/012722-fedno...
lotsofpulp 2y ago
That is your bank’s policies with Zelle. For whatever reason, it seems your bank does not trust you yet. For example, these are BoA’s limits: https://www.bankofamerica.com/online-banking/zelle-transfer-limits/ https://www.bankofamerica.com/online-banking/zelle-transfer-...
- deleted 2y ago
  [deleted]
- hiatus 2y ago
  I think it was less of the bank not trusting me and more not trusting my mother, as she had just set up her account for Zelle that day. Either way, there are not this many security gates when writing a check, and it's insulting to deny me access to send my own money as I see fit. If it was about trusting me they would not have let me send the wire (which is the same as Zelle when it comes to inability to claw back money).
  - lotsofpulp 2y ago
    Usually the bank charges a wire transfer fee, which may cover the risk premium. Also, the government recently required banks to recover Zelle transfers. I imagine this costs banks money? https://www.reuters.com/technology/cybersecurity/payments-app-zelle-begins-refunds-imposter-scams-after-washington-pressure-2023-11-13/ https://www.reuters.com/technology/cybersecurity/payments-ap... > Lenders on Zelle are also now required to implement a tool that flags transfers with risky attributes, such as a payment to an account that has never transacted on the Zelle network, said Chance. He said Zelle has seen "a step-change reduction" in fraud and scam rates this year but declined to provide details.
    - hiatus 2y ago
      My bank allows me to send wires without charge.
      - jqpabc123 2y ago
        The few US banks that offer "free" outgoing wires usually have other restrictions such as a large minimum account balance.
        astura 2y ago
        Fidelity cash management account has free incoming and outgoing wires, no minimum balances, and ATM fee reimbursement. It's not technically a bank though, it's a brokerage account with banking features - https://www.fidelity.com/spend-save/fidelity-cash-management-account/overview https://www.fidelity.com/spend-save/fidelity-cash-management...
jqpabc123 2y ago
A wire has no such limitation and can be practically "instant" with same-day settlement if you send it early enough. A wire usually comes with some hefty fees and as you point out, it is restricted to "banker's hours". FedNow transactions are fully automated and designed to work instantly 24/7/365. The cost to banks will be a few pennies each to support the system operation. Banks being banks, some will probably try to add a fee for this initially but I expect competition will quickly reduce this to zero. Debit card transactions are typically "free" now but the real cost to banks is actually more than what a FedNow transaction is supposed to be.

by hiatus 2y ago

toomuchtodo 2y ago

Max value transfer for the system is currently $500k, although most institutions are starting at $100k. To move value is $0.045, to request payment is $0.01 (charged to the institution plugged into the rails, not necessarily the financial services customer). https://www.frbservices.org/news/press-releases/012722-fednow-pricing-announcement https://www.frbservices.org/news/press-releases/012722-fedno...

lotsofpulp 2y ago

That is your bank’s policies with Zelle. For whatever reason, it seems your bank does not trust you yet. For example, these are BoA’s limits: https://www.bankofamerica.com/online-banking/zelle-transfer-limits/ https://www.bankofamerica.com/online-banking/zelle-transfer-...

deleted 2y ago
[deleted]
hiatus 2y ago
I think it was less of the bank not trusting me and more not trusting my mother, as she had just set up her account for Zelle that day. Either way, there are not this many security gates when writing a check, and it's insulting to deny me access to send my own money as I see fit. If it was about trusting me they would not have let me send the wire (which is the same as Zelle when it comes to inability to claw back money).
- lotsofpulp 2y ago
  Usually the bank charges a wire transfer fee, which may cover the risk premium. Also, the government recently required banks to recover Zelle transfers. I imagine this costs banks money? https://www.reuters.com/technology/cybersecurity/payments-app-zelle-begins-refunds-imposter-scams-after-washington-pressure-2023-11-13/ https://www.reuters.com/technology/cybersecurity/payments-ap... > Lenders on Zelle are also now required to implement a tool that flags transfers with risky attributes, such as a payment to an account that has never transacted on the Zelle network, said Chance. He said Zelle has seen "a step-change reduction" in fraud and scam rates this year but declined to provide details.
  - hiatus 2y ago
    My bank allows me to send wires without charge.
    - jqpabc123 2y ago
      The few US banks that offer "free" outgoing wires usually have other restrictions such as a large minimum account balance.
      - astura 2y ago
        Fidelity cash management account has free incoming and outgoing wires, no minimum balances, and ATM fee reimbursement. It's not technically a bank though, it's a brokerage account with banking features - https://www.fidelity.com/spend-save/fidelity-cash-management-account/overview https://www.fidelity.com/spend-save/fidelity-cash-management...

jqpabc123 2y ago

A wire has no such limitation and can be practically "instant" with same-day settlement if you send it early enough. A wire usually comes with some hefty fees and as you point out, it is restricted to "banker's hours". FedNow transactions are fully automated and designed to work instantly 24/7/365. The cost to banks will be a few pennies each to support the system operation. Banks being banks, some will probably try to add a fee for this initially but I expect competition will quickly reduce this to zero. Debit card transactions are typically "free" now but the real cost to banks is actually more than what a FedNow transaction is supposed to be.