Payments / refunds in the US

Bruno · 09-29-2008, 02:27 PM

Quote:

Originally Posted by Chris L

Well, my much publicized issues with my GDLP are known. I sent mine back for a refund. I have not received the refund yet, but I've been assured that it was sent in the mail...........
Chris L

The 1900s called. They want their payment system back...

Purely out of curiosity: do people in the US use bank transfers at all? and if not, why?

Sending cheques in the mail is something that noone does anymore on this side of the ocean, so I am wondering what keeps the system alive, given that is it much more unreliable than wire transfer, costs more money, and causes more paperwork.

JimmyH-AD · 09-29-2008, 02:35 PM

Bank transfers are expensive here in the USA. Paypal isn't bad, if that is the method of payment refunds are free but not all vendors use Paypal. Snail mail is pretty dependable here if the check really is in the mail.

sicboater · 09-29-2008, 03:51 PM

I want to transfer money, I can email my bank and tell them the routing information and it gets done. I don't think the service is available to everyone though. We have a particular account status that grants us this action.

Not sure why it isn't open to more folks.

The ACH is already fully digital, so it's not like it would be a stretch.

-Rob

Quick Orange · 09-29-2008, 04:18 PM

Quote:

Originally Posted by Bruno

Sending cheques in the mail is something that noone does anymore on this side of the ocean, so I am wondering what keeps the system alive, given that is it much more unreliable than wire transfer, costs more money, and causes more paperwork.

Great question. I've always wondered why we don't have a system like that. It could be that the people who get money strictly off of instant transfer (Visa!) are blocking it. Who knows...

Wildtim · 09-30-2008, 01:52 AM

My bank charges me a fee to do a wire transfer, either sending, or receiving. So I prefer paper checks, or through my credit/debit card (VISA). If my bank didn't charge me I would prefer electronic transactions but as it is....

Bruno · 09-30-2008, 07:32 AM

But don't cheques cost money as well?
And you have to mail them, so the stamp costs too.

Over here, wire transfers are nearly free. Not 100%, but you get a free number per year, and after that it costs monye, but only in the range of cents. Cheaper than a stamp anyway.

Also, all bills come in as wire requests. You just send money to the specified account with the specified transaction code, and all is done. Most companies accept nothing else. Especially utility companies (gas, water, ...).

The costs for cashing a cheque are significant.
I once got an 88 euro refund from a french hotel in the form of a cheque. After all costs (because it was international) I would have had 8 euros left. I could have gotten them to do a wire transfer - perhaps - but since this was company money I just threw the cheque in the bin. Time was more valuable than that.
For anything less than 10000 euros it is just not worth it.

Bart · 09-30-2008, 08:33 AM

Please allow me to get something clear here.
In Belgium, I can sit behind my computer, log on to my bank account, and wire money to Bruno's bank account (or anyone else having a bank account in Belgium). Something in between a few hours and a day later, Bruno checks his balance (also without leaving his home) and sees the money added to his account. This cost me, nor Bruno, anything at all. In fact, banks encourage this method, because it saves them personnel costs.

Is this NOT possible, in the USA, the nursery of all electronic communications???

I've got it all wrong, right?

Bart.

Russel Baldridge · 09-30-2008, 02:25 PM

Most banks will allow you to set up an online bill payment system, but for the most part, bills still get sent through the mail, as do bank statements etc.

Alot of people are somewhat hesitant to put ALL of their financial info on the internet, just in case some hacker gets ahold of it.

But I agree, the cost of sending so much paper through the mail is surely unnecessary.

Wildtim · 09-30-2008, 02:45 PM

Another reason for paper bills is that for most legal action you mut have been served in writting in a provable way. E-mail just doesn't cut it as far as the courts are concerned. Add in the fact that only 60% of americans have a home computer and even then many of them do not have high speed (or in places any) internet service available for a reasonable cost and I think paper business transactions will still be the standard for a while yet.

In fact I am currently very frusterated with my employer as they require me to have direct deposit but right now their computer system is to backwards to send me a payment stub, so I have no idea what my deductions are totaling each pay period making my record keeping a nightmare. I am thinking of demanding paper checks with a reciept just so I get all the information I need to keep up my accounts. I've talked with my department HR person and she agrees with me. There is currently no legal record that they have paid me anything in the last couple months (they have) but were I an unscrupulous person they could find themselves in hot water pretty quick, yet this is their standard practice.

Wildtim · 09-30-2008, 02:48 PM

A final reason businesses send paper checks is that they are less likely to be cashed, or cashed as soon. This allows the business to keep earning interest onn the amount even though it has been "refunded". I'll bet there are a significant number of paper checks that get lost by the holders too so they never get around to cashing them. THis would give the business a better chance of having their cake and eating it too.

How much do stamps cost over there anyway?

Bruno · 09-30-2008, 07:31 PM

Bank statements are legal documents. i.e. If you have a bank statement that you sent a payment to account nr X with transaction code Y, the document is indisputable.

Also, you don't really need a computer. All banks have a number of special ATM terminals that allow you to perform transactions. You can do that at any office of the bank you are with.
In fact I don't do home banking because I have no faith in online security.

Employers always pay by bank transfer, because it is much easier for them. There isn't an employer who pays cash these days, unless they pay a percentage under the table, so to speak.

Chady · 09-30-2008, 08:18 PM

I pay my rent through ATM currently because I accidently destroyed some security file needed to online bank.

Would cost me 15 Danish to do it inside the bank at the cashier which is about 3 USD I think

Quick Orange · 09-30-2008, 08:23 PM

There is a possibility of wiring money like you described Bart, but it's all up to the bank that you do business with. Mine makes it easy as long as the account you're wiring to is within the bank. Outside of it and you run into problems. Then again, my checking account is entirely free, so I can see why they don't just provide it.

Chris L · 09-30-2008, 08:32 PM

Given that this post was built by citing a quote from me, I'll be the first to say I'm all for wiring money or any other method than the one apparently chosen by Harrelson to refund my money from my defective GDLP.

I sent it to him by Priority mail on 9/15/2008 and have yet to receive a refund. After making an inquiry, Harrelson stated that his wife I believe, mailed me a refund check on 9/24/2008. I have not received it yet. I had paid for the GDLP by Paypal originally and assumed he would refund back to my Paypal account. He mentioned that he'd be "eating" the cost of my GDLP personally by refunding the money back to me. Maybe that's why he chose to mail a check rather than do a Paypal refund?

At any rate, still no check.

Chris L