Digital Age, and I am Mailing Checks

[ardorlan]

I'm a network engineer by trade, computer don't scare me any more then driving a car.
Yeah stuff can happen but usually doesn't.

I am unhappy that I am mailing checks to people, I mean Paypal fees just seem to be to high. Am I missing something?
Should I be using google check out or other digital service to send money?
What is the cheapest way to send money online?

I guess I could use online bill pay.
then they will mail the check for me right?

[ardorlan]

I just billed pay myself 10$, they said I should get it by the 20th of Sept.

[Mossy]

Paypal is the only one that seems to have caught on. There's several others that crop up now and then.

But, I agree.

[68Camaro]

If you can tolerate the delay (not good for BIN type PM transactions) your banks billpay service is normally free and easy. Not aware of another good option besides paypal that goes direct using routing numbers.

[Thogey]

We could just make deposits directly into each other's bank accounts.

That would require divulging bank account numbers, but with a check you do that anyway.

Well Fargo has a free online bill pay, they mail the check (cashiers)but it takes a few days

[ardorlan]

We could just make deposits directly into each other's bank accounts.

That would require divulging bank account numbers, but with a check you do that anyway.

Well Fargo has a free online bill pay, they mail the check (cashiers)but it takes a few days

The issue with divulging bank account numbers is the Seller has to provide the Buyer with an account number, vs mailing a check, the buyer divulging his account number to the seller.

But with basic account information with my bank ally.com for free I can xef up to 1,000/day if I have the sellers banking information.

[68Camaro]

If I was in the heavy-duty sell mode I would simply set-up a $100 free bank account for sole use of receiving monies, and would have no issue passing that out to validated RCers. I would transfer the money out after every receipt. Nearly risk free.

[Mossy]

Had to look that up. There are inconvenient limitations by the feds, but it is doable.

[ardorlan]

If I was in the heavy-duty sell mode I would simply set-up a $100 free bank account for sole use of receiving monies, and would have no issue passing that out to validated RCers. I would transfer the money out after every receipt. Nearly risk free.

There is no reason why I couldn't open another account at my bank just for this, an 'incoming' account.
I could then like you said, transfer the funds right after they are put into my 'incoming' account to my normal account.
Further more I could opt out of overdraft.

[ardorlan]

Had to look that up. There are inconvenient limitations by the feds, but it is doable.

Please expand on these limits?

[Mossy]

6 transfers a month, per federal regs. Since it's federal, you should have the same problem there. Gotta get back to work. Check again later.

[68Camaro]

6 transfers a month, per federal regs. Since it's federal, you should have the same problem there. Gotta get back to work. Check again later.

Hmmm, wonder if that's the source of the account transfer limit that I've got at my CU, and I think also saw at my main bank. I think they limit transfers between different accounts (such as from money market to checking) to 6 or 7 a month. I thought it was just some stupid rule they had, but maybe it flows down from the Feds?

[Mossy]

https://www.alaskausa.org/service/faq.asp?q=33

What is Federal Regulation D?

Federal Regulation D (Reg D) establishes the monetary reserve amount financial institutions are required to maintain. All deposit or share accounts are categorized as transactional or non-transactional, and reserve requirements differ accordingly.

Reg D also restricts non-transactional accounts to prevent their being used as transactional accounts. Financial institutions are required to enforce these restrictions, to include closing an account that repeatedly exceeds these limits. Alaska USA has opted to enforce these limits by not allowing members to exceed the limit of restricted transfers or withdrawals.

Affected accounts and restrictions
Savings and money market accounts are non-transactional acounts subject to the following restriction:

•No more than 6 preauthorized, electronic or telephonic (telephone, fax, or computer) transfers may be made from a non-transactional account to another account in the name of the member or to a third party in a calendar month. No more than 3 of these may be to a third party.
This limit includes transfers made through UltraBranch or initiated by calling the member service center, or by overdraft protection.

In-person transactions at a branch or ATM are exempt from these restrictions.

Avoiding the Reg D limitations
There are several things you can do to avoid the transfer restrictions of this regulation:

•Keep sufficient funds in your checking account to cover your transactions.
•Make payments to third parties from your checking account, not your savings account.
•Open a credit line for overdraft protection instead of using your savings account.
•Perform transfers at any ATM or branch location.

[ardorlan]

I got my Billpay payment in the mail, Submitted it Friday, Had a check in my box Monday. pretty quick. Could do it from my computer and did not have to pay for a stamp..

Still its going to take some time for the mail to get to the seller.

[silverhalide]

I don't know what your financial situation nor how disciplined a spender you are but I would set up autopay for as many bills as you can preferably through a credit card to consolidate your expenses into one lump sum payment and set it up where you can pay the credit card account online. If you use a credit card when you pay it make sure it is paid in full on or before the due date and on a day when the bank is open for business because they constantly throw you traps of having the account due on a banking holiday or weekend.

I would also avoid using debit cards especially with the proposal of penalizing the fee structure. I would also try to set up bank accounts with a credit union and at all costs avoid using money center banks like the plague.

[ardorlan]

Please provide some examples of money center banks

Thanks