5 ms·
ACH is way too slow. It is really an artifact of a slow moving banking industry. Dwolla has made some limited strides with their 'Instant' product but asking n
by rabrooks 14y ago
ACH is way too slow. It is really an artifact of a slow moving banking industry. Dwolla has made some limited strides with their 'Instant' product but asking new customers to go through the signup process is also cumbersome.
Is Balanced Payments working on something that can put funds into someones bank account within the hour?
- jareau 14y agoWe're always trying to speed up the flow of funds, which is why we offer next-day ACH transfers rather than 3-5 days. Also, our original product used to do instant account-to-account transfers, but that product couldn't scale. We may dust off that tech though if we can find a way to make it work at scale.
- rsync 14y agoExactly. ACH, wire transfers, etc. - it is amazing how much of our "modern" banking practice is still defined by the constraints of (literally) horses and buggies. 3pm cutoff times, overnight settlement, multi-day wire settlement ... what a clown show.
- jareau 14y agodon't get me started!! I rage so hard at the US banking system. I laugh/cry every time I have to tell a customer we can't make deposits on weekends or holidays.
- onetwothreefour 14y agoFedWires are almost instant... depending on your bank, receiving bank, etc. For most B2B FedWires, it's pretty much instant. Yay Treasury. The cutoffs do suck, however. The US needs to catch up to the rest of the world with regards to banking. And also kill off checks.
- jareau 14y agoWhat's the cost for FedWire?
- onetwothreefour 14y agoThe nominal cost (cost to the bank) is here: http://www.frbservices.org/servicefees/fedwire_funds_services_2013.html http://www.frbservices.org/servicefees/fedwire_funds_service... It costs less than $1 to send a FedWire. The FedWire can be up to $1BN. :) The FedWire system is actually very similar to transfer systems in other countries. I'm not sure why ACH is still in use apart from as a way to digitize checks. That said, most banks charge, at minimum, $12 per wire in/out for personal accounts. Most business/corporate accounts get wires free since that's how people pay each other (something like $1TN in wires is processed every day).
- deleted 14y ago[deleted]
- joshAg 14y agoHeh, Morgan Stanley ran into this when the were trying to stay afloat after the 2008 crash: > At this point, under any other circumstances, the $9 billion would be wired electronically from one bank to the other. But there were a few problems with wiring the money. First off, it was a holiday weekend and banks would be closed in both countries until Tuesday. Secondly, wiring any amount of money usually takes 2-3 days and Morgan Stanley may not have survived another 24 hours! Finally, Morgan Stanley was itching to make a formal announcement of the merger as soon as possible in order to stop their stock price from plummeting any further. ... A few hours later, the Mitsubishi bankers returned to Morgan Stanley’s headquarters with what will likely go down in history as the biggest check ever written. http://www.celebritynetworth.com/articles/entertainment-articles/biggest-check-written/ http://www.celebritynetworth.com/articles/entertainment-arti...
- jareau 14y agohilarious!