this post was submitted on 24 Jul 2023
303 points (98.7% liked)
Technology
60090 readers
5363 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
For those that don't know in the US even if you use a third party system the final settlement of the money still has to go through the Fed and it's usually as either a Wire or an ACH transaction. ACH is slow and batch processes which can be daily. Wire can be quicker but more expensive. Some banks give you access to funds sooner but it's still not settled until that NACHA batch file goes through the Fed.
Anyway there are two instant payment systems coming to the US: RTP (by the Automated Clearing House (ACH)) and FedNow.
Outside the US they've already had other instant payment systems.
Yes after a decade of living in Europe I can only say, "fucking finally!"
Thank you for this, because as an Australian I was quite confused. We have had "instant" payment systems for as long as I can remember between banks. The US banking and payment system seems stuck in the dark ages.
This didn't kill things like PayPal though, they're completely different services.
If the money is going from a PayPal account to a PayPal account, why would it have to clear at all?
Word to the wise: if you are buying a house in the USA, make sure that the transfer of funds to the closing attorney/settlement agent is done by WIRE transfer, not ACH. ACH is reversible, and in many jurisdictions, the closing shop is not allowed to accept ACH transfers. Wire transfers are more of a pain in the ass, but you don't want to find out on closing day that your money is no good because you could make it disappear from the closing shop's trust account two days after closing.