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A comment on Payday loans are coming for everyone. Parent comment

Re:Payday loans are coming for everyone by r00fus on Wednesday September 19, 2018 @02:18PM (#18026403)
So are you saying you'll be increasing the frequency of ACH transactions by 14x (e.g. daily vs. biweekly) or 30x ?

There is likely a cost with that, even if the bank allows the frequency change for free. Most banks are starting to provide APIs, but many still charge fees for large volumes of ACH formatted files for example. The costs in making sure things are tied out (ie, all amounts match to the penny) seem pretty high.

Every payroll cycle is difficult because you have things like [benefit|FSA|ESPP] deductions, and the occasional bonus earning or 0-dollar mandatory RSU vesting (to account for taxes paid).

The benefit for a daily payment is pretty low compared to the costs.

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Re:Payday loans are coming for everyone by planteen on Wednesday September 19, 2018 @04:01PM (#18027242)
> The benefit for a daily payment is pretty low compared to the costs.

Agreed. I can't imagine having to balance my checking account with a daily transaction. It would be much harder to catch an error or a one-off when you didn't get paid too. Is my mortgage going to start deducting daily too? Both those things seem insane.

Also you are limited to 6 ACH transactions a month to a savings or money market account.

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Re:Payday loans are coming for everyone by gergles on Wednesday September 19, 2018 @04:51PM (#18027604)
> Also you are limited to 6 ACH transactions a month to a savings or money market account.

You're limited to 6 withdrawals, you can make as many deposits as you want.

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Re:Payday loans are coming for everyone by gugagore on Wednesday September 19, 2018 @02:23PM (#18026452)
>The costs in making sure things are tied out (ie, all amounts match to the penny) seem pretty high.

Could you elaborate on why it seems high? What you're describing is computations on distributed systems, and I'd be surprised if it's computation or communication that is the bottleneck for handling ACH transactions.

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Re:Payday loans are coming for everyone by r00fus on Wednesday September 19, 2018 @04:45PM (#18027548)
Manual effort for handling discrepancies for each payroll run. You might be surprised but lots of companies' payroll processes are not automated to avoid manual processing at some point in the process.
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