The US is supposed to be the financial capital of the world. Yet electronic transfers are difficult, sometimes impossible, and the payment system relies so much on mailed checks.
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Many things like rent or professional services require me to send a check through the mail, and do not accept ACH, or if they do, there are fees.
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The pay bills service at my bank, mails a physical check to service providers, this takes a week or more. Checks sometimes get lost in the mail.
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One time I had to pay several hundred dollars and the only option were a check (takes too long), a credit card (high fees), or Zelle (limited to a laughably small $500 a month, which cannot be increased and wasn't enough).
I'm originally from Australia, where anyone can simply transfer money from any bank account to another using online banking with the account and routing number. This is similar to ACH, but the difference is it is always free and widely used, whereas ACH is limited and usually has a fee. There are transfer limits but they are so high as to effectively not exist and can be easily increased.
Bills are paid using this, or BPay, which is effectively the same thing (you get a code from the company to be paid. Then you send the money using online banking and their code. Again, quick, free, and electronic.
No one ever uses checks. The idea of mailing a check is essentially unheard of.
When I rented in the US, I was required to provide a cashier's check for the deposit. A check drawn from the bank's funds so that it cannot bounce. Again, this is unheard of in Australia. I'm not even sure if such a financial product even exists. No one ever asks for this. They just require ordinary payment for the deposit.
What gives?
Why can't these services be provided in the US: quick, free electronic transfers from bank to bank.
How is it in European countries? More similar to Australia where everything is electronic, or US where everyone commonly mails checks?
Submitted July 27, 2022 at 10:38PM by DisastrousFlow-14 https://ift.tt/AQJaTW2
