Slashsnake
VIP Member
- Aug 5, 2016
- 589
- 48
- 68
Anyone have any ideas on how/if America will ever clean up the banking system here? It's old,outdated, the least secure, slow... Does anyone agree with my points below? I think our economy would be better off with a modern banking system.
We're charged for wire transfers, which are basically regular transfers in other countries.. Instant and free, which is the way it should be in America. Instead, banks charge $25 for outgoing transfers, and then the receiving bank charges another $15 for the incoming wire transfer, which is ridiculous. So an American has to fill out a long form, pay $40 and then they can get their money the same business day, whereas it's free and simple in other countries. We could get rid of checks with a more modern system.
We have the worst credit card payment system... We still heavily rely on magnetic stripe technology. In addition to the old mag-stripe, many payment terminals are hidden behind the counter tops which are not accessible to the consumer, so someone else has to touch your card... Unacceptable in my opinion. We rely on "signature authentication" which is also unacceptable. Not only is this worse than PIN, but the merchant doesn't even compare signatures, and many are "digitally captured" which makes them even more worthless.
Add in the fact that outside of HSBC, AMEX, and the Citi Costco, there's virtually no contactless issued cards in the U.S. Currently, merchants are to blame for the lack of chip acceptance everywhere as they're too lazy and cheap to finish terminal certification, and many (like Pizza Hut and Wendy's) haven't even purchased the correct terminals yet.
ATM's charge usage fees. If you're using another bank's ATM, good luck using it for free. In other countries ATM usage is free because the banks actually get along with one another... Which probably is one reason why transfers between banks are almost instant and free. If you're paying your own bank $2.50 to use the ATM while the other bank/ATM owner charges you $3 to use their ATM (totaling $5.50) why would anyone want to use an automated teller machine not owned by their bank?
We still use checks because of point #1 above. I should be able to instantly transfer money to my landlord, not have to pull out the checkbook once a month. Some banks give you set amount of money that day, but others make you wait up to 5 days for a check to clear depending on the amount and the bank. Checks are a target for fraud, just like magnetic stripes.
Our online billing system is a joke. CVV2's hardly work if someone has already stolen your card information from when you dropped it on the ground. We need a standard system that requires the cardholder to confirm online and foreign transactions with a text message reply first. ACH transfers to a biller such as Verizon should be encrypted and instant if done from your bank's website and also the merchant website.
We're charged for wire transfers, which are basically regular transfers in other countries.. Instant and free, which is the way it should be in America. Instead, banks charge $25 for outgoing transfers, and then the receiving bank charges another $15 for the incoming wire transfer, which is ridiculous. So an American has to fill out a long form, pay $40 and then they can get their money the same business day, whereas it's free and simple in other countries. We could get rid of checks with a more modern system.
We have the worst credit card payment system... We still heavily rely on magnetic stripe technology. In addition to the old mag-stripe, many payment terminals are hidden behind the counter tops which are not accessible to the consumer, so someone else has to touch your card... Unacceptable in my opinion. We rely on "signature authentication" which is also unacceptable. Not only is this worse than PIN, but the merchant doesn't even compare signatures, and many are "digitally captured" which makes them even more worthless.
Add in the fact that outside of HSBC, AMEX, and the Citi Costco, there's virtually no contactless issued cards in the U.S. Currently, merchants are to blame for the lack of chip acceptance everywhere as they're too lazy and cheap to finish terminal certification, and many (like Pizza Hut and Wendy's) haven't even purchased the correct terminals yet.
ATM's charge usage fees. If you're using another bank's ATM, good luck using it for free. In other countries ATM usage is free because the banks actually get along with one another... Which probably is one reason why transfers between banks are almost instant and free. If you're paying your own bank $2.50 to use the ATM while the other bank/ATM owner charges you $3 to use their ATM (totaling $5.50) why would anyone want to use an automated teller machine not owned by their bank?
We still use checks because of point #1 above. I should be able to instantly transfer money to my landlord, not have to pull out the checkbook once a month. Some banks give you set amount of money that day, but others make you wait up to 5 days for a check to clear depending on the amount and the bank. Checks are a target for fraud, just like magnetic stripes.
Our online billing system is a joke. CVV2's hardly work if someone has already stolen your card information from when you dropped it on the ground. We need a standard system that requires the cardholder to confirm online and foreign transactions with a text message reply first. ACH transfers to a biller such as Verizon should be encrypted and instant if done from your bank's website and also the merchant website.