USD xfer fees

middle-age American living in New Jersey near the Lincoln Tunnel «« With humility always fearing I’ll give someone reason to quote Kendrick Lamar, “be humble sit down”, I am knowledgeable of banking fees related to transfers and payments. Dear kind readers: If a conversation about this text produces noteworthy addendums from Adam (an expert in this area) or elsewhere I will post more. Sincerely, Tom Doody. Types of transfers in the US are one of four types: ONE: international wire TWO: ACH THREE: merchant processing FOUR peer to peer. INTERNATIONAL WIRE has recently added apps like xoom and remitly for personal transfers. For business transfers international wire remains limited. Fees are found in three places, and sometimes the fees are hidden. For example one cannot find a Bankofamerica exchange rate until the remit is one click away from sending. Fees can also be charged by the sending and receiving bank. Wide variation exists with one example: ICICI is ninety percent cheaper than bankofamerica for a thousand-dollar remit to India. ACH is the workhorse of US banking with checks clearing overnight or a few banking days in the same manner for more than a half century. ACH remains inexpensive and modern non-bank banks like paypal usually offer ACH to a bank for free. MERCHANT PROCESSING includes a credit or debit card, and ranges from three percent to less than a half percent. Paypal jerks with this fee in two interesting ways. Paypal charges three-percent when accepting credit or debit cards, and if merchant processing is used to send paypal balance to a bank then it’s one percent. Merchant processing has political force and greedy banks keeping it king for retail transactions. If I used plastic to pay my amigo Manish Patel for beer, then he loses a merchant-processing fee while other less expensive options are available Manish is locked to merchant processing. PEER to PEER is money held by user agreement, and that money is governed by the rules of the org like paypal. Generally cheap, but maximum merchant processing costs. Unlike US banks they do not charge monthly fees. »» about me 302-990-2346 contact us


About Tom Doody

middle-age American living in New Jersey near the Lincoln Tunnel
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