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Brit here- I usually send money to friends and family using bank transfers with internet banking- it’s instant, there’s no fee (AFAIK) and all you need are som

Brit here- I usually send money to friends and family using bank transfers with internet banking- it’s instant, there’s no fee (AFAIK) and all you need are someone’s account number, and sort code, which everyone has. Is this just not an option in the states? It’s insane to me that y’all use (need??) third party apps for something as simple as sending money around.

ceejayoz 4y ago
> Is this just not an option in the states? Correct. We also still use paper checks fairly extensively, and chip/NFC cards are a recent advancement.
wtracy 4y ago
In the USA, sending a wire transfer is usually $15-$20, and some banks charge $20 to receive a wire transfer.
- JumpCrisscross 4y ago
  > sending a wire transfer is usually $15-$20 Will note that there are banks that offer sending and receiving wires for free.
  - gnicholas 4y ago
    Wow, did not realize that banks also charge for receiving incoming wires, but most of the big guys charge around $15: https://www.nerdwallet.com/article/banking/wire-transfers-what-banks-charge https://www.nerdwallet.com/article/banking/wire-transfers-wh...
    - ok123456 4y ago
      And an additional fee it's it's 'overnight' and another fee if it's international. Then they do a three-way call between the parties and the banks to verify the transaction.
      - gnicholas 4y ago
        Really? I've had wires come in over the years and never participated in a conference call.
        JumpCrisscross 4y ago
        > had wires come in over the years and never participated in a conference call Same. That said, if your transaction history is sketchy (e.g. large cash withdrawals following international wires) or the wire is coming from or going to a high-risk place, e.g. Russia or Turkey, your bank may opt to do this as an anti-fraud / anti-money laundering measure.
- astrange 4y ago
  Sending an ACH is nearly free, banks just don't expose it because of the very poor experience when you get one of the numbers wrong. You can ACH people all day with Transferwise.
dobs 4y ago
There are a few bank-to-bank mechanisms (ACH, wire transfers) but they're slow (often multiple business days) and often have fees associated with them ($20+ for wires). The lack of good transfer mechanisms is what has led to a proliferation of alternatives (e.g. Venmo, Cash App). Zelle has emerged as a bank-approved mechanism for "instant" funds transfer.
enragedcacti 4y ago
Zelle is basically the US attempt at instant bank transfers. You can set it up and use it through your participating bank's app or through their online portal.
gnicholas 4y ago
This is possible if both people use the same bank (Bank of America, Wells Fargo, Chase), but even with the relatively consolidated finance sector, the odds of this are not super high.
ars 4y ago
> Is this just not an option in the states? They are working on it: https://www.frbservices.org/financial-services/fednow/about.html https://www.frbservices.org/financial-services/fednow/about.... should be available this year. Once it's up Zelle, Cashapp, etc will not be needed anymore.
- samwillis 4y ago
  I believe FedNow is the US implementation of FasterPayments which we have had here in the UK since 2008, and what the parent is referring to. https://en.m.wikipedia.org/wiki/Faster_Payments https://en.m.wikipedia.org/wiki/Faster_Payments
- uticus 4y ago
  Wow this is the first I've seen of this, amazing it hasn't come across my radar. Seems like a major consolidation, tied closely to a government institution (or whatever the FRB technically is).
  - r00fus 4y ago
    Can you explain what you mean by consolidation? It's essentially a standards-based collaborative approach not unlike other large payment networks like in the UK, Europe and India.
    - uticus 4y ago
      Apologies for the armchair commentary. "Consolidation" meaning commerce regulation and oversight more tightly consolidated than possible with technology (including paper notes) currently used. > ...standards-based collaborative approach... You have not said this explicitly, but for myself it is notable that this is not peer-to-peer, with both parties collaborating based on a standard. Instead it is clearinghouse. Unlike peer-to-peer standards, this would give the Fed Reserve at least a large dataset or at most a large control lever. From the linked article: > Through financial institutions participating in the FedNow Service... > Consistent with the Federal Reserve’s historical role of providing payment services...
astrange 4y ago
Zelle, what they're complaining about here, is that. It's not a third party app.
ezfe 4y ago
FedNow is scheduled to come this year and provide instant money transfer. We already have delayed money transfer services run by the government. Zelle is just a private sector solution since the government hadn't built it out yet.
r00fus 4y ago
Yeah, the USA is way behind many other nations here. Exercise left for reader as to why.

ceejayoz 4y ago

> Is this just not an option in the states? Correct. We also still use paper checks fairly extensively, and chip/NFC cards are a recent advancement.

wtracy 4y ago

In the USA, sending a wire transfer is usually $15-$20, and some banks charge $20 to receive a wire transfer.

JumpCrisscross 4y ago
> sending a wire transfer is usually $15-$20 Will note that there are banks that offer sending and receiving wires for free.
- gnicholas 4y ago
  Wow, did not realize that banks also charge for receiving incoming wires, but most of the big guys charge around $15: https://www.nerdwallet.com/article/banking/wire-transfers-what-banks-charge https://www.nerdwallet.com/article/banking/wire-transfers-wh...
  - ok123456 4y ago
    And an additional fee it's it's 'overnight' and another fee if it's international. Then they do a three-way call between the parties and the banks to verify the transaction.
    - gnicholas 4y ago
      Really? I've had wires come in over the years and never participated in a conference call.
      - JumpCrisscross 4y ago
        > had wires come in over the years and never participated in a conference call Same. That said, if your transaction history is sketchy (e.g. large cash withdrawals following international wires) or the wire is coming from or going to a high-risk place, e.g. Russia or Turkey, your bank may opt to do this as an anti-fraud / anti-money laundering measure.
astrange 4y ago
Sending an ACH is nearly free, banks just don't expose it because of the very poor experience when you get one of the numbers wrong. You can ACH people all day with Transferwise.

dobs 4y ago

There are a few bank-to-bank mechanisms (ACH, wire transfers) but they're slow (often multiple business days) and often have fees associated with them ($20+ for wires). The lack of good transfer mechanisms is what has led to a proliferation of alternatives (e.g. Venmo, Cash App). Zelle has emerged as a bank-approved mechanism for "instant" funds transfer.

enragedcacti 4y ago

Zelle is basically the US attempt at instant bank transfers. You can set it up and use it through your participating bank's app or through their online portal.

gnicholas 4y ago

This is possible if both people use the same bank (Bank of America, Wells Fargo, Chase), but even with the relatively consolidated finance sector, the odds of this are not super high.

ars 4y ago

> Is this just not an option in the states? They are working on it: https://www.frbservices.org/financial-services/fednow/about.html https://www.frbservices.org/financial-services/fednow/about.... should be available this year. Once it's up Zelle, Cashapp, etc will not be needed anymore.

samwillis 4y ago
I believe FedNow is the US implementation of FasterPayments which we have had here in the UK since 2008, and what the parent is referring to. https://en.m.wikipedia.org/wiki/Faster_Payments https://en.m.wikipedia.org/wiki/Faster_Payments
uticus 4y ago
Wow this is the first I've seen of this, amazing it hasn't come across my radar. Seems like a major consolidation, tied closely to a government institution (or whatever the FRB technically is).
- r00fus 4y ago
  Can you explain what you mean by consolidation? It's essentially a standards-based collaborative approach not unlike other large payment networks like in the UK, Europe and India.
  - uticus 4y ago
    Apologies for the armchair commentary. "Consolidation" meaning commerce regulation and oversight more tightly consolidated than possible with technology (including paper notes) currently used. > ...standards-based collaborative approach... You have not said this explicitly, but for myself it is notable that this is not peer-to-peer, with both parties collaborating based on a standard. Instead it is clearinghouse. Unlike peer-to-peer standards, this would give the Fed Reserve at least a large dataset or at most a large control lever. From the linked article: > Through financial institutions participating in the FedNow Service... > Consistent with the Federal Reserve’s historical role of providing payment services...

astrange 4y ago

Zelle, what they're complaining about here, is that. It's not a third party app.

ezfe 4y ago

FedNow is scheduled to come this year and provide instant money transfer. We already have delayed money transfer services run by the government. Zelle is just a private sector solution since the government hadn't built it out yet.

r00fus 4y ago

Yeah, the USA is way behind many other nations here. Exercise left for reader as to why.