Re: Electronic Bank Transfers
WHAT THE F... ?
I live in Australia which is often cast as being backwards and behind the times... (well except for Game Of Thrones where we're the #1 illegal downloading country even though it goes to air 1 hour after US..).
I remember in the early 90's I had some paper material sent out to me from a company in the states and they put it in a package BUBBLE WRAPPED to make sure it got here safely - I think they had images of mail sacks on the back of kangaroo's hoppng down our streets. And this picture was NOT helped by the Simpson's in Australia episode.
Anyway, I can make a transfer to any other Oz bank account for free; I can receive for free and have been doing so for 10+ years. It is common place on most invoices to see bank account details to allow you to make payment easily.
Have I misunderstood Jeffrey's post or.. is the US banking system so behind that you can't do this ?
Andrew
Banking in the US is very highly regulated but not quite a utility yet. There are good arguments for finishing the beat down (aka Dodd-Frank) and making them just like water and electric companies. Opinions vary, but I suspect bankers can afford major lobbying efforts.
Until then congress makes sport of closing the sundry honey-pots that banks use to make a profit, so the banks scramble for new ways to make money. The most recent target from congress for a bank profit center to squash was bounced check fees. Often as they make it harder for banks to make a profit the unintended consequence is that they price low income customers out of normal bank services, driving them to payday check cashing services and payday loan scams. Before long people without accounts will get paid using debit cards.
I don't feel too sad for bankers who have been receiving a huge subsidy for years due to unnaturally low inter bank borrowing rates (presumably to rebuild balance sheets slammed by the credit bubble collapse in 2007/2008). So banks can borrow for almost nothing and lend it out for a little more to make a lot more ( a math thing). However the shadow hanging over the economy has discouraged private business from doing too much borrowing.
I suspect most US bank customers do not know what they can or can't do... or what it cost them. Checks are a form of contract.
JR
PS: I recall the old days when they used to fly airplane loads of paper checks back and forth across the country to clear them. Now that they do this all electronically, why don't they clear checks and credit our accounts faster?
PPS: Oz isn't that backward... Last time I was there I could get a proper bottle of stout, but the football is odd, and what's the deal with cricket? If you think a double-header is long, you don't want to watch a cricket match.
