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View Full Version : Transferwise. Banks losing the money transfer goldmine



skuthorp
12-01-2015, 03:02 PM
Tech companies and technology change is catching up with one of the traditional banks income streams.
https://transferwise.com/?utm_source=google&utm_medium=cpc&utm_campaign=EN_AUS_Search_Brand&matchtype=e&network=g&device=c&devicemodel=&creative=77082794457&keyword=transfer%20wise&placement=&adposition=1t1

C. Ross
12-01-2015, 07:04 PM
No kidding. I send money to my college-attending daughter in Europe. Via ACH, each transfer would cost $50 and I get nicked on the dollar-euro exchange rate. And there's a three day delay in getting funds.

Via Paypal, I pay 0.5% service fee and the exchange rate is purely market rate.

I went to my bank, where I've had a "preferred account" for 27 years and asked why in the world I would pay a 5.5% service fee and a sucker exchange rate. They said it was because their transaction was more secure. I told them that I would take a chance on the electronic backbone that manages $76 trillion in retail sales a year.

Dinosaurs.

George Jung
12-01-2015, 07:11 PM
Banks prefer we 'stay in the dark', and pay those fees. Tell me - how is this done via Paypal?

C. Ross
12-01-2015, 07:20 PM
It's really easy. Just follow the online instructions.

On the Paypal site you create a new account or link an existing one to your bank account. I recall you enter the routing number and account number, and you send a test transaction of a few pennies. Done. I set up my account in less than five minutes. It took a little longer to connect to my daughter's account with LCL Bank in France. And after a few transactions Paypal wanted to confirm she wasn't running some kind of money laundering scheme, so they asked her to send a scan of her residency card and visa. Easy.

George Jung
12-01-2015, 07:26 PM
Thanks.... but ya lost me at 'follow the (oneline) instructions'.... :P

(ya sound like my wife!)

C. Ross
12-01-2015, 09:29 PM
Duuuuude. You'll never escape the banks that way.

Seriously, setting up a paypal account and using it to transfer money is dead easy.

Tom Hunter
12-01-2015, 10:21 PM
It's a good thing.

That said, the bank really is more secure, I've worked with SWIFT, and they put a lot of effort into keeping track of the money. For me and you the fee is not worth the protection but for big money it is, and big money gets a lower fee anyway.

PeterSibley
12-02-2015, 12:27 AM
Duuuuude. You'll never escape the banks that way.

Seriously, setting up a paypal account and using it to transfer money is dead easy.

Even I can do it !

Canoeyawl
12-02-2015, 05:27 AM
Back in the days of 10% interest rates a lot of money was made with "transfers" using the float on currency. Ever notice how the funds don't transfer on the same day? If you were transferring a few million for a job in Europe, the interest earned just overnight would be a tidy sum. My neighbor made a small fortune that way in the eighties. He was routinely transferring a million or two a week from Ca. to Scotland and back, and of course the transaction took two days, at least.

skuthorp
12-02-2015, 05:41 AM
Ah yes the 'bump' of electronic funds that constantly circled the globe to ensure books balanced at the end of trading. Collecting interest all the way.

PeterSibley
12-02-2015, 05:48 AM
Back in the days of 10% interest rates a lot of money was made with "transfers" using the float on currency. Ever notice how the funds don't transfer on the same day? If you were transferring a few million for a job in Europe, the interest earned just overnight would be a tidy sum. My neighbor made a small fortune that way in the eighties. He was routinely transferring a million or two a week from Ca. to Scotland and back, and of course the transaction took two days, at least.

A nanosecond is enough if the float is sufficient, one of the first programmer scams...... a convenient loop through a personal account.

Rum_Pirate
12-02-2015, 11:34 AM
A nanosecond is enough if the float is sufficient, one of the first programmer scams...... a convenient loop through a personal account.


The next scam, in which I believe the employee was prosecuted, was to take the paid amount of the percentage after 2 decimal places when it was rounded down to a whole cent/pence/etc on over night balances being transferred to a personal account. IE if interest was 1.4536700762 the 0.0036700762 was skimmed off and transferred to a personal account.

John of Phoenix
12-02-2015, 11:42 AM
No kidding. I send money to my college-attending daughter in Europe. Via ACH, each transfer would cost $50 and I get nicked on the dollar-euro exchange rate. And there's a three day delay in getting funds.

Via Paypal, I pay 0.5% service fee and the exchange rate is purely market rate.

I went to my bank, where I've had a "preferred account" for 27 years and asked why in the world I would pay a 5.5% service fee and a sucker exchange rate. They said it was because their transaction was more secure. I told them that I would take a chance on the electronic backbone that manages $76 trillion in retail sales a year.

Dinosaurs.GREEDY dinosaurs with the instincts of lemmings. The problem is that they take all of us over the cliff.

John of Phoenix
12-02-2015, 11:49 AM
Back in the days of 10% interest rates a lot of money was made with "transfers" using the float on currency. Ever notice how the funds don't transfer on the same day? If you were transferring a few million for a job in Europe, the interest earned just overnight would be a tidy sum. My neighbor made a small fortune that way in the eighties. He was routinely transferring a million or two a week from Ca. to Scotland and back, and of course the transaction took two days, at least.That's know as "check kiting", like flying a kite. It's illegal but with interest rates so low, banks have had to find other ways to steal money.

Too Little Time
12-02-2015, 12:02 PM
I just use the concierge.

Canoeyawl
12-02-2015, 12:16 PM
A nanosecond is enough if the float is sufficient, one of the first programmer scams...... a convenient loop through a personal account.

Exactly...

(He was a supervisor / owner of a company that built offshore floating oil rigs, and made more moving money from here to there (Scotland) than he ever made on the job, although I had the impression that bit was not something he should talk about. A smart guy, he was orphaned at 10 years old, torpedoed during WW2 immigrating to the US his entire family was lost. Ending up in the care of an aunt in southern Ca, he dove for Abalone as a teen, became a hard hat salvage diver and moved on to oil rigs and owning a company that built and launched them. As a lark, he sailed to Tahiti with Sterling Hayden...He could sure spin a yarn. In his retirement he secured an exclusive import license for those odd toothpicks with a bit of floss in a loop on the end and made another small fortune)