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I just read that giving out the bank account number may be dangerous as well... http://money.stackexchange.com/questions/15218/is-it-safe-to-give-out-ones-bank-

by mobini 12y ago

I just read that giving out the bank account number may be dangerous as well... http://money.stackexchange.com/questions/15218/is-it-safe-to-give-out-ones-bank-account-number http://money.stackexchange.com/questions/15218/is-it-safe-to... It seems like I have to either accept paypal and risk a chargeback, or I have to provide my bank details which can be used for fraudulent withdrawals. I think maybe I'll risk paypal then and keep detailed records of our email in the event of a chargeback. Unless I've misunderstood something?

davismwfl 12y ago
It is true that technically people can process a payment or deposit against any account where they have the Routing and Account number. However, the legal consequences of doing an unauthorized withdrawal is quite stiff, not to mention the audit trail is really easy to follow. And your own bank will provide fraud protection if someone does this, limiting your liability to basically nothing. I generally have no issues giving a company our wire information or ACH information. I'd much rather get the fraud protection from my bank. The difference to me is this. My bank sides with me first until the other side proves they were authorized, e.g. within 24 hours they put the money back in my account and fight with the other side to prove they had my authorization for the withdrawal. If you get a chargeback or Paypal refund, they both side against you and make you prove you were entitled to receive the funds, and even then many times won't care (Paypal).
davismwfl 12y ago
BTW -- one other point, anyone that sees another persons check has all they need to electronically process a payment (or deposit) against their account. What stops them from doing it is generally 1: a lack of knowledge, 2: the Fraud protection and audit trail combined with stiff penalties (e.g. its a US federal felony from what I understand) for doing it. Not that it doesn't happen, but in 10+ years I have never had anyone dispute an ACH/Wire transfer (or illegally reprocess one), but Paypal fights and (a few) chargebacks we have had. One last note, payroll departments many times have you sign an agreement that says IF they over pay you that they can automatically go into your account and auto debit the over payment amount. That is completely legal and legit, but I've never had a company send me an agreement granting them the same permission, and I wouldn't sign it if they did.

by mobini 12y ago

davismwfl 12y ago

It is true that technically people can process a payment or deposit against any account where they have the Routing and Account number. However, the legal consequences of doing an unauthorized withdrawal is quite stiff, not to mention the audit trail is really easy to follow. And your own bank will provide fraud protection if someone does this, limiting your liability to basically nothing. I generally have no issues giving a company our wire information or ACH information. I'd much rather get the fraud protection from my bank. The difference to me is this. My bank sides with me first until the other side proves they were authorized, e.g. within 24 hours they put the money back in my account and fight with the other side to prove they had my authorization for the withdrawal. If you get a chargeback or Paypal refund, they both side against you and make you prove you were entitled to receive the funds, and even then many times won't care (Paypal).

davismwfl 12y ago

BTW -- one other point, anyone that sees another persons check has all they need to electronically process a payment (or deposit) against their account. What stops them from doing it is generally 1: a lack of knowledge, 2: the Fraud protection and audit trail combined with stiff penalties (e.g. its a US federal felony from what I understand) for doing it. Not that it doesn't happen, but in 10+ years I have never had anyone dispute an ACH/Wire transfer (or illegally reprocess one), but Paypal fights and (a few) chargebacks we have had. One last note, payroll departments many times have you sign an agreement that says IF they over pay you that they can automatically go into your account and auto debit the over payment amount. That is completely legal and legit, but I've never had a company send me an agreement granting them the same permission, and I wouldn't sign it if they did.