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Re:Fed announces details of new interbank service to support... by pfundstein on Sunday August 09, 2020 @07:58PM (#24103996)
Nearly all first world countries enjoy instant payments at the point of sale and person to person. It boggles my mind that it has taken this long and a pandemic to even set the gears in motion, all while battling ridiculous levels of cheque and credit card fraud.
Re:Fed announces details of new interbank service to support... by crazygringo on Sunday August 09, 2020 @09:11PM (#24104480)
As a general rule, the US is terrible at a lot of first-world things for a good reason: because it was the first (or close).

We have crappy old subways, airports, bridges, skyscrapers, and so on... because we built them early, versions 1.0. And they stuck around.

Other countries had the luxuries of building their versions decades later, when the technology was 2.0 and 3.0 and so on.

So the US is stuck with both old and crappier versions of a lot of stuff, but where it still doesn't make financial sense to rip them out and replace them with the newest.

Our financial system suffers from a lot of similar flaws. E.g. by the time other countries knew enough to base their credit cards on chips+PIN, the US was still stuck with a legacy installed base of stripes+signatures. Money transfers is just one more example.

Re:Fed announces details of new interbank service to support... by pacaro on Sunday August 09, 2020 @09:26PM (#24104571)
Banking in general and international banking, predate the US

London, Glasgow, Budapest and Paris all have metro systems that predate the New York Subway

There are multiple bridges that are still in use that predate European colonization of North America

While the oldest airport is in the US, (College Park), Hamburg, Bucharest, Bremen, Rome, Amsterdam, Paris, Sydney all follow very shortly after

AFAICT Skyscrapers is really the only example you give where the US canonically built the v1.0

I think that there are probably other reasons, my suspicion is primarily rent seeking

Re:Fed announces details of new interbank service to support... by alasdair_ on Sunday August 09, 2020 @11:00PM (#24105053)
I’m from Glasgow. Completely random fact ahead:

The underground in Glasgow was comprised of orange trains. They “ran like clockwork” and had the nickname “the clockwork orange”, which is where the Stanley Kubrick movie title came from. Allegedly.

Re:Fed announces details of new interbank service to support... by e2e8 on Monday August 10, 2020 @04:07AM (#24106757)
Based on a quick search, that does not seem to be true. The title of the movie comes from the title of the book it is based on. The book's author has given some explanations for the origin of the title that do not involve Glasgow trains. [0] It seems the name for the subway comes from the movie. There also seems to be some dispute about the usage of that name for the Glasgow subway. [1]

[0] https://en.wikipedia.org/wiki/A_Clockwork_Orange_(novel)#Tit...

[1] https://en.wikipedia.org/wiki/Glasgow_Subway#Nicknames

Re:Fed announces details of new interbank service to support... by mayankkaizen on Monday August 10, 2020 @02:22AM (#24106162)
Holy shit!

Never thought I'd get to know what Clockwork Orange actually means through a random comment on HN.

Re:Fed announces details of new interbank service to support... by dboreham on Monday August 10, 2020 @08:18AM (#24108444)
Except the comment is incorrect. The underground nickname came from the movie not vice versa.
Re:Fed announces details of new interbank service to support... by madamelic on Monday August 10, 2020 @12:32AM (#24105587)
I have always been under the impression it is because the US wasn't bombed to bits during WWII and didn't basically get to re-think infrastructure.
Re:Fed announces details of new interbank service to support... by riffraff on Monday August 10, 2020 @12:56AM (#24105688)
I am not sure this is true, tho it sounds interesting.

Before WW2 there wasn't much infrastructure to begin with, the big highways have been built after.

The metro lines from before are still there and the bridges that were built before the war have just been rebuilt in the same places (i.e. were the roads arrived and the river was narrow).

Most of the big cities also still have medieval and older city centers, and we're still using roman-era routes for roads.

Re:Fed announces details of new interbank service to support... by issa on Monday August 10, 2020 @01:14AM (#24105790)
Based on things like the Chicago Fire and the SF Quake, it seems (at least anecdotally) clear that massive destruction has a positive effect on infrastructure down the road.
Re:Fed announces details of new interbank service to support... by pacaro on Monday August 10, 2020 @12:36PM (#24111109)
The Great Fire of London (CE 1666) did this for London too
Re:Fed announces details of new interbank service to support... by zxcvbn4038 on Monday August 10, 2020 @09:09PM (#24116192)
In the case of banking you have to realize that US bank accounts here are often completely free, but they will charge you a penalty for anything and everything that is a result of action or inaction on your part (its always your fault). Everything is designed to maximize the chance of your making a mistake so they can charge you a fee.
Re:Fed announces details of new interbank service to support... by Jommi on Monday August 10, 2020 @12:49AM (#24105660)
Maybe now that its getting bombed to bits because of COVID, something good might end up happening?
Re:Fed announces details of new interbank service to support... by Bayart on Monday August 10, 2020 @05:43AM (#24107325)
>There are multiple bridges that are still in use that predate European colonization of North America

There are bridges in use that predate Christianity.

Re:Fed announces details of new interbank service to support... by pjg on Sunday August 09, 2020 @11:47PM (#24105310)
There is another reason. This is very specific to the way USA does things. It has to do with the role of the government vs. market. Other countries also had an antiquated payments infrastructure e.g. Cheques in Britian, Scandinavian countries etc. The government there simply mandated the dozen or so banks to come up with an instant/real-time payment system and it was rolled out in a few years

US has more than 10,000 banks and credit unions. That combined with the fact that US the most "market driven" of the industrialized countries it has take a backseat approach of letting the "market" solve it

There have been attempts by the "market" e.g. wallets and lately "push to card" by VISA/MC and RTP by the The Clearing House but it has realized that the Federal Government needs to come up with a standard settlement network with specifications and a protocol that "market" i.e. private companies can build upon.

Given the timeline i.e. 2023-2024, it may be a little late since apps and companies building on top of P2C (Push to Card) and RTP (Real-time Payments ) are likely to corner substantial portion of faster 24x365 payments before FedNow is ready.

And don't forget even if it's ready on time it'll take another 2-4 years for all the Financial Institutions to connect to it

Re:Fed announces details of new interbank service to support... by kalleboo on Monday August 10, 2020 @06:37AM (#24107643)
The same day and instant payment systems in Sweden were initiated and are owned jointly by major banks, and were not government-initiated. Specifically the Swish mobile payments started with a very small number of banks and it has been a race for other banks to join to stay competitive.

The main digital ID system was also made and is owned by the banks. The government just set legal standards for digital ID to fulfill to be legally valid, there were a few competitors (including one by a phone company), and the bank system won because everyone already had strong digital ID for internet banking.

The EU-wide international systems, however, have been pushed from above from the EU

Re:Fed announces details of new interbank service to support... by oblio on Monday August 10, 2020 @03:56AM (#24106686)
I wonder if there are a lot of studies of the market "fighting back" progress. Everything about the free market is predicated on informed customer decisions, and if you, as a company, can gaslight consumers effectively through propaganda (let alone lobbying...), then you've basically broken the invisible hand.

Have there been studies about this? I'm pretty sure Adam Smith predates mass advertising, branding, modern marketing.

Re:Fed announces details of new interbank service to support... by pembrook on Monday August 10, 2020 @04:53AM (#24107023)
It’s even less nefarious than that.

To put it simply, humans are creatures of habit. In a vacuum devoid of propaganda, we will still continue to repeat the habits we have developed.

Facebook or google don’t need to do any advertising to keep their audience on the platform. That pesky “g-o” you impulsively type into the address bar will do it for them!

The only saving grace for humanity is that people die, and not all of their habits get passed to the next generation.

Re:Fed announces details of new interbank service to support... by jdub on Sunday August 09, 2020 @10:25PM (#24104874)
You'll generally find the rest of the (first) world did 1.0 too. But they invest in public infrastructure, so also did 2.0 and 3.0.

The USA is a very strange mix of hyper-first-world and second/third-world, and a lot of it has to do with how taxes are raised and spent.

Re:Fed announces details of new interbank service to support... by xeromal on Sunday August 09, 2020 @11:11PM (#24105102)
The fact that it has federal and state systems probably bears a portion of the responsibility.
Re:Fed announces details of new interbank service to support... by jdub on Monday August 10, 2020 @01:00AM (#24105709)
Spain has states with relatively similar state/federal power to the USA. The EU has nation states with more or less power depending where you look. Australia has states, Canada has provinces...

One aspect of US taxation and funding that seems wildly out of step: Primarily local funding of schools. Way to build inequality into the system!

Re:Fed announces details of new interbank service to support... by vinay427 on Monday August 10, 2020 @02:26AM (#24106193)
> Spain has states with relatively similar state/federal power to the USA. The EU has nation states with more or less power depending where you look. Australia has states, Canada has provinces...

None of these seem like very close comparisons to the US model. There isn't the same legal independence in Spain on a number of matters, from what I recall, but I'll see if I can find a source that provides a direct comparison. For starters, Spain could actually issue centralized coronavirus restrictions and has only recently devolved this to a limited degree to the autonomous communities.

A few EU countries may be more relevant, but I think the closest comparison I've found so far is with Switzerland where I currently live. However, the federalism in the US seems to involve a lot more infighting with frequent lawsuits between state and federal agencies.

Re:Fed announces details of new interbank service to support... by throwaway936482 on Monday August 10, 2020 @01:23AM (#24105840)
As other posters have pointed out this doesn't really hold up. I suspect it's more that since the Reagan era the USA has frequently had a self hating government, that is a government run by people that believe government itself is bad. This has led to a lot of intentional neglect and sabotage of infrastructure in the belief that "the market" will magically provide public goods. We have similar issies in the UK
Re:Fed announces details of new interbank service to support... by bjohnson225 on Monday August 10, 2020 @02:43AM (#24106295)
Europe has many old subways and bridges too and like in the US they can be difficult to upgrade for cost reasons. (E.g. The London Underground still lacks air con on some lines because of narrow tunnels; there are parts of the network built with asbestos in the tunnels. In both cases fixing it would require closing the line and rebuilding the tunnel, so it doesn’t happen)

That’s not true in banking though where many upgrades are software based and not so disruptive/expensive. The UK, and presumably other countries, did not start from the systems we have today - we moved from signatures to chip & pin, and from checks to bank transfers to instant bank transfers. My parents would write checks all the time when I was growing up, but I’m in my late 20s and have never written one in my life.

Re:Fed announces details of new interbank service to support... by alasdair_ on Sunday August 09, 2020 @10:57PM (#24105026)
This is actually a very good point.

Solely as a side note: London has an underground system from 1863 that is still in use today. New York’s subway (the first in the nation) didn’t get going for more than forty years later.

Re:Fed announces details of new interbank service to support... by bildung on Monday August 10, 2020 @09:19AM (#24108903)
> As a general rule, the US is terrible at a lot of first-world things for a good reason: because it was the first (or close).

Is that really true?

ATMs were first in Europe and Japan, BACS in the UK is older than ACH in the US.

I think this is more about lack of coordination (i.e. political reasons) than something like a natural first mover disadvantage.

German debit cards for example simply had both stripes and chip for the transition period.

Re:Fed announces details of new interbank service to support... by Gustomaximus on Sunday August 09, 2020 @09:28PM (#24104580)
I dont buy this we were first to do it. Plenty of other countries do continual upgrades to subways, banking, bridges, financial systems etc. My reasons are partly these;

1) I think US tend to think of itself as No.1 nation and makes it less likely to look at other countries doing things better and looking to follow. I think this becomes a mental limitation for many US citizens and policy makers.

2) There is too much corporate capitalism. Money in politics etc. Look at the internet system where Google tried to roll out fibre and there were regions passing laws stop competitors even going into the market. Look at the prices you pay for mobile services. For the world leading free market, there is way to much corruption where markets are restricted rather than government pushing to open established markets to new business when they become entrenched.

3) Over investment in military. US could have that budget, still be the largest military by a mile and be dropping hundreds of billions in building and repairing infrastructure.

4) Too much focus on making money vs doing things well. The desire to keep building a nation seems to be gone. same in my country of Australia. You read history from earlier in the 20th century and they had a view to get things done that would benefit a nation overall. Now its 'would a rail line really pay for itself and be cost effective' type mentality that limits visionary projects.

5) Career politicians. Like other nations I think many career politicians want to take the safe route for reelections. There is endless media criticism of these guys if something goes wrong, and big projects, things do wrong and no-one wants to hear were putting up taxes this year to pay for stuff. No idea how, but we need to filter better for people that believe in what they are doing and have a vision vs popularity based vote for me campaigning. And generally vet them for brains and ability vs I always vote for this party.

Re:Fed announces details of new interbank service to support... by tialaramex on Sunday August 09, 2020 @10:19PM (#24104842)
Your point (1) definitely. Humans are far more alike than they are different so you will be very well served by learning from the experiences of others instead of insisting on making all the mistakes for yourself, not least because some mistakes are fatal.

Take US healthcare. There are a lot of models for how you can deliver universal healthcare to all your country's residents. They're all different. They all have problems. They're all better than the current US situation. They're all cheaper for a start, most of them have better outcomes by some measures, often by almost all measures.

There was plenty of room for two political parties to have ideological disagreements about how to deliver universal healthcare to Americans as a result. Which examples to follow and which to reject.

But the Republicans didn't do that. They decided the hill they wanted to die on (or at least, for some of their voters to die on) was the ideological rejection of universal healthcare as a goal. They would literally tell people it can't be done, despite the fact that every comparable country already did it.

Re:Fed announces details of new interbank service to support... by kmonsen on Monday August 10, 2020 @12:51AM (#24105664)
There are a few things most outsiders don't understand about US healthcare:

- It's primary purpose it to bill people, not to cure people. It is doing really well at this.

- The secondary purpose is to provide incredible care to the richest of people. It does pretty well at this as well. Not as good as it used to, but still probably good enough.

Pretty far down the list of priorities is to heal poor people and make sure they don't fall sick again. It is not something most people give a shit about. If they die, they hey they should have been rich instead.

It is slowly changing with the middle class that was rich enough to get good care being eroded away enough to realize no-one gives a shit about them but they have enough voting power that people have to pretend (similar situations happen all over the world, just maybe not with healthcare).

Re:Fed announces details of new interbank service to support... by alasdair_ on Sunday August 09, 2020 @11:02PM (#24105066)
> I think US tend to think of itself as No.1 nation and makes it less likely to look at other countries doing things better and looking to follow.

The coronavirus testing response, where the USA refused to use existing, proven, tests from Germany (or S Korea) proved this to me more than any other single event.

Re:Fed announces details of new interbank service to support... by dboreham on Monday August 10, 2020 @08:16AM (#24108433)
There's another reason besides being first: corruption.
Re:Fed announces details of new interbank service to support... by bestnameever on Sunday August 09, 2020 @09:54PM (#24104720)
> It boggles my mind that it has taken this long and a pandemic to even set the gears in motion

The gears were set in motion prior to the Pandemic. They are just saying that the Pandemic reinforces the work they have been doing.

"Since we initiated FedNow one year ago, we have been hitting our project milestones, and today I am pleased to announce the Federal Reserve Board has approved the core features and functionality based on extensive input from stakeholders."

Re:Fed announces details of new interbank service to support... by dawnerd on Sunday August 09, 2020 @08:30PM (#24104208)
US has means of instant payments, it's just not standard across banks. There's lots of way other countries are far behind as well (like Canada having banks that still charge for every transaction you make).
Re:Fed announces details of new interbank service to support... by nucleardog on Sunday August 09, 2020 @08:56PM (#24104362)
I wouldn’t say Canada is “far behind” because the banks like to rip people off.

We’ve had a single unified payment network for like 40 years. We’ve had instantly settled electronic transfers (Interac e-Transfer) exposed to consumers directly through their institutions for about 20 years. We’ve had chip and pin and NFC contactless payments for quite a long time.

And the rip off is really just the handful of big banks. My credit union (which is in another province but thanks to the unified network and mobile deposit, etc I’ve been able to continue using on the other end of the country without issue or inconvenience) provides free accounts with no per-transaction or other fees. They’re also happy to issue a loan or provide other services online.

Obviously I’m not as familiar with the US system, but I think putting Canada anywhere near the same level as the US is a mistake.

Re:Fed announces details of new interbank service to support... by patmorgan23 on Sunday August 09, 2020 @09:16PM (#24104510)
The US has a unified payment system (ACH) and has had it for many decades it's just not instant, usually takes 3 business days for a transaction to fully settle.
Re:Fed announces details of new interbank service to support... by JumpCrisscross on Sunday August 09, 2020 @09:54PM (#24104722)
> The US has a unified payment system (ACH) and has had it for many decades it's just not instant

And for instantaneous transfers, we have Fedwire. The original real-time wire service. It’s free for most commercial and high net worth users, and thus, from a bulk economic perspective, sufficient for industry.

Re:Fed announces details of new interbank service to support... by tlavoie on Monday August 10, 2020 @10:42PM (#24116677)
Interac (in Canada) is trivially simple to use, and quick.

1. Send the payment through your logged in session at the bank or credit union, or via their respective phone app. 2. Select the recipient, adding a new one if needed. They'll need a mobile # or email address. 3. Include the question and its one-word answer that the recipient has to answer to accept. 4. Hit send 5. Recipient is notified, follows the link, and answers the question. If they have it set up, it might be auto-deposited without the question/answer.

It takes minutes, and doesn't ask the sender for the recipient's banking details.

Re:Fed announces details of new interbank service to support... by iagovar on Monday August 10, 2020 @06:19AM (#24107546)
So why isn't ACH used widespread?
Re:Fed announces details of new interbank service to support... by jandrese on Monday August 10, 2020 @02:17PM (#24112293)
Because the Fed sits on your money for 1-5 days so they can play with the float. It means you either need to wait out your transactions for this random length of time or take the other guy at his word that he send the money (LOL).
Re:Fed announces details of new interbank service to support... by peteretep on Sunday August 09, 2020 @09:01PM (#24104405)
> Nearly all first world countries

And many poorer countries too -- pretty common here in Thailand to scan a QR code with someone's bank details in it to send them money, bank-to-bank, instantly.

Re:Fed announces details of new interbank service to support... by kome on Sunday August 09, 2020 @08:03PM (#24104032)
Americans have such a strange relationship with technology... the most innovative startups, and yet the worse infrastructure.

here in Europe it's the contrary :)

and btw: the service will be active in 2023 or 2024... while I enjoy immediate transfers bank to bank since years...

Re:Fed announces details of new interbank service to support... by kelnos on Sunday August 09, 2020 @08:28PM (#24104195)
Two things (probably more) contribute to this, I think:

1) Americans have been trained from birth to distrust government in all forms. Centralizing more and more services triggers a visceral fear response. (IMO it's nonsense, for the most part, but it's there nonetheless.)

2) Being "first to market" with new technologies often means you're just stuck with the sub-optimal first version, while other countries can learn from your mistakes when they do their first implementation.

On the flip side, when I'm in Europe, I definitely run into more places that only take cash, which I find annoying to no end. It's rare for places in the US (at least in fairly well-populated areas) to not take credit or at least debit cards.

Re:Fed announces details of new interbank service to support... by ed25519FUUU on Sunday August 09, 2020 @08:44PM (#24104289)
A house built down the road from me came pre-wired with cat6 and also solar panels preinstalled. Other houses here don’t even have the roof alignment for solar electricity.

There’s advantages and disadvantages to being early.

Re:Fed announces details of new interbank service to support... by gexla on Sunday August 09, 2020 @08:47PM (#24104316)
Could also be a forced thing due to being relatively fragmented with many different countries under a union which isn't as tight as the US union of states.

Great thing about the US is that it's possibly the biggest homogeneous market in the world where you can form a lot of reliable expectations of people throughout. By contrast, countries such as China and India are highly diverse culturally. You can't even expect people to be speaking the same language (yes, each have national languages but not everyone speaks them and it's not a first language for many.)

Re:Fed announces details of new interbank service to support... by haltingproblem on Sunday August 09, 2020 @10:30PM (#24104903)
China is diverse linguistically? You mean to say I can encounter some one in a major metro in China and they won't speak mainland Mandarin?
Re:Fed announces details of new interbank service to support... by gexla on Monday August 10, 2020 @12:42AM (#24105620)
I have never been to China. I'm from the US and I only speak English. Currently I'm living in the Philippines though.

I imagine China is a lot like the Philippines. There are a lot of dialects and then one national language. The national language here is Tagalog, but English is also a national language.

You can expect that almost everyone speaks the local dialect unless they are from another region. You can expect that most people speak conversational English. Some have a difficult time speaking Tagalog and may revert to English if Tagalog is the only common language among the speakers.

People feel confident speaking the languages they use regularly. For regions outside the Tagalog regions, that's mostly the regional dialect. Most street signs are in English. Local TV is mostly Tagalog but there are English stations as well.

Everyone is unique, but in many cases people have no reason to speak Tagalog. They may hear it, but hearing is different than speaking. In any case, you can't make the same assumptions nation-wide as you can with people in the US.

In the Philippines, you could do pretty good with marketing in English. Kids are taught English in school and it's possible the regional dialects could quickly disappear in the future. If you're going to learn only one language in the Philippines, it should be English. Other countries may not have this same unity on language. Each country is different.

In the US, you have (Wikipedia 2019 numbers) nearly 330 million people who you can make solid assumptions for in terms of language. Most of those people are English as a daily driver if not a first language. It's hard to beat the combination of one of the most widely spoken languages and one of the largest countries by population.

I don't know what other language has that many "first language" speakers in a single country. Mandarin could be, but even within the Mandarin language there are lots of dialects (one caveat is that the writing system is the same for all.) So, it's difficult to determine what the actual numbers are. According to a quick Google search, a quarter of the Chinese population doesn't speak the common tongue at all.

An honorable mention might be Brazil, a country with a population of over 200 million and all-in on Portuguese.

Re:Fed announces details of new interbank service to support... by osdiab on Monday August 10, 2020 @01:06AM (#24105742)
While the Chinese government has forced the majority of young people to learn Mandarin in schools, even just taking a 1 hour train ride from Shanghai to Hangzhou, both cities have local languages that are mutually unintelligible. Elderly people, especially in the countryside but also in the cities occasionally, often don't know how to speak Mandarin at all. But if you mostly hang out with urban youth you should be fine entirely with Mandarin.
Re:Fed announces details of new interbank service to support... by _-___________-_ on Monday August 10, 2020 @05:16AM (#24107158)
Unless you only speak to younger people in tier-1 cities, China is enormously diverse linguistically.
Re:Fed announces details of new interbank service to support... by liuyong on Monday August 10, 2020 @07:58AM (#24108301)
I can confirm that, the situation may improve in the next generation.
Re:Fed announces details of new interbank service to support... by _-___________-_ on Monday August 10, 2020 @10:21AM (#24109531)
I take issue with the word "improve" there. Whilst I definitely agree that a common language is valuable in many ways, it would be preferable if a common language could be achieved without a loss of diversity (i.e. additional to, rather than replacing, the existing languages).

Different languages embody different cultures, and different ways of thinking. This diversity should be celebrated and embraced, not only as an aesthetic matter, but also because being able to communicate and think in different ways makes humans more capable.

Re:Fed announces details of new interbank service to support... by liuyong on Monday August 10, 2020 @11:27PM (#24116887)
Agreed. But this trend looks unstoppable,to most parents in Shanghai, even English is more important than local language.

Maybe what happend in 2020 would change that...

Re:Fed announces details of new interbank service to support... by _-___________-_ on Tuesday August 11, 2020 @07:52AM (#24119349)
Agreed - I have a few Shanghainese friends, and they tell me their parents discourage them from learning/speaking Shanghainese, since there is no "value" in doing so. They used to push them to learn English (but maybe that will change a little now). Perhaps they have a point, but when you're young and still good at learning language, you don't have to choose one or the other.

I have heard similar stories from Europeans coming from places with strong dialects / local languages, so it's not unique to China for sure.

Re:Fed announces details of new interbank service to support... by kome on Monday August 10, 2020 @10:17AM (#24109498)
i am not sure if improve is the right word here :)

i believe losing linguistic variety is almost a tragedy.

Re:Fed announces details of new interbank service to support... by raxxorrax on Monday August 10, 2020 @09:28AM (#24108984)
1) They have been trained to distrust government and are the country with the most consistent freedom on the planet bar none. I am not from the US, but if US Americans suddenly decide to change that, it would be a big loss. Europe certainly cannot hold up to anything here, even if it too believes in division of powers.

And otherwise I like cash and social security is one factor. Let's take a "problematic" country like Germany and its social security net. In the event that you cannot take care of yourself, the government gives you the minimal amount of money you need to survive. In exchange for total control of your accounts. There is a gray area with abuse of social security, but I think it is clear what that control can entail.

Will they even seize 10$ you got from your friend for a pack of cigarettes? Yes, they will... Being critical of government is the better way, it cannot be your parent and if it is, it is a lousy one. These rules were made by civil servants that cannot even get into that situation and it shows.

So don't give up the suspicion just yet.

Re:Fed announces details of new interbank service to support... by Semaphor on Monday August 10, 2020 @04:50AM (#24107003)
regarding the flip side, at least in Germany that is partially due to your point 1: distrust in government. Where the USA wants guns to protect themselves, Germans want cash.
Re:Fed announces details of new interbank service to support... by Swizec on Sunday August 09, 2020 @08:40PM (#24104264)
> On the flip side, when I'm in Europe, I definitely run into more places that only take cash, which I find annoying to no end.

This is mostly for tax evasion reasons and sometimes for employees skimming off the top. The more “proper” a place, the less likely they are to encourage cash transactions.

Happens in US too, of course. It’s always the shady places that are cash only and everyone else is digital.

Re:Fed announces details of new interbank service to support... by pfundstein on Sunday August 09, 2020 @08:57PM (#24104373)
That's a bit cynical. While I'm not saying that doesn't happen, I would say that smaller businesses typically accept cash-only to avoid the fees of accepting card payments. And this is not only the 1-2% transaction fee charged by (e.g.) Visa/Mastercard, these fees also include things like

* Fees for the rental and maintenance of payment card terminals.

* Gateway fees.

* Cost of fraud prevention services.

* Fees or premiums to insure against ‘forward delivery risk’

All of this erodes the already thin margins that small businesses typically operate at.

And then you have cash: no fees, instant payment, private.

Re:Fed announces details of new interbank service to support... by Sander_Marechal on Monday August 10, 2020 @03:41AM (#24106614)
Most of those fees don't apply to e.g. Europe. It's pretty much just hardware (starts at 30 euro or so for the cheap versions) and some transaction costs (1.5% or less, depending on volume). It's often cheaper to accept electronic payments than cash. Handling cash costs money (bank deposits, buying change, vaults, cash registers, higher insurance cost).

Even street and marker vendors in The Netherlands accept electronic payments.

Re:Fed announces details of new interbank service to support... by chiph on Sunday August 09, 2020 @08:56PM (#24104367)
Or it's Germany. They prefer cash over plastic for privacy reasons.

https://www.npr.org/2019/06/09/728323278/for-many-germans-ca...

Re:Fed announces details of new interbank service to support... by nend on Sunday August 09, 2020 @08:58PM (#24104385)
>Happens in US too, of course. It’s always the shady places that are cash only and everyone else is digital.

The US is a big place. Maybe where you are it's like that, but that's not at all accurate where I am.

It's either mom and pop places, or places that have been around for decades that "charmingly" never added support for cards. Both of which are probably less shady than average.

Although the pandemic has forced some of those places to start accepting cards now.

Re:Fed announces details of new interbank service to support... by Shared404 on Sunday August 09, 2020 @10:09PM (#24104789)
Your local Walmart/Chain Restaurant/$FRANCHISE is going to be just as shady, but less obvious.

Source: Know people who have recently worked across a variety of franchise type locations, they definitely still have _plenty_ of things go below board.

Re:Fed announces details of new interbank service to support... by bartvk on Monday August 10, 2020 @02:32AM (#24106234)
> This is mostly for tax evasion reasons and sometimes for employees skimming off the top

What are your reasons to state that so strongly as if it's a fact?

Re:Fed announces details of new interbank service to support... by phkahler on Sunday August 09, 2020 @08:44PM (#24104290)
>> the most innovative startups, and yet the worse infrastructure.

Nobody in the US wants to pay for infrastructure. It's the governments role, but political figures want to spend our money in less critical ways.

Re:Fed announces details of new interbank service to support... by adventured on Sunday August 09, 2020 @11:23PM (#24105171)
This isn't unique to the US of course: the US is spending a higher share of its GDP on infrastructure than the EU is at this point. The welfare state in both Europe and the US is consuming all available resources, and that's only going to get far worse over the next 20-30 years due to aging and contracting workforces. Most of Europe outside of Germany has zero available resources for big infrastructure spend. The US could divert $200 billion from its military spending (requiring a near total retreat from the rest of the world, including Europe, Japan and South Korea), however that would merely lessen the extreme budget deficit that already exists thanks to entitlement spending. That budget gap will grow dramatically over the coming decade. The US needs to raise taxes by $1.5 trillion just to break even.
Re:Fed announces details of new interbank service to support... by api on Sunday August 09, 2020 @08:14PM (#24104115)
Its because a generation or two of Americans were propagandized heavily that anything socialized will immediately lead to Soviet communism. If we build infrastructure Lenin will rise from the dead and transform into a giant mech warrior and wade across the Atlantic to destroy us all.
Re:Fed announces details of new interbank service to support... by pacaro on Sunday August 09, 2020 @09:28PM (#24104581)
I would watch this movie
Re:Fed announces details of new interbank service to support... by api on Sunday August 09, 2020 @10:10PM (#24104791)
It's called Red Dawn and it's awesome.
Re:Fed announces details of new interbank service to support... by qzx_pierri on Sunday August 09, 2020 @08:15PM (#24104120)
Germany?
Re:Fed announces details of new interbank service to support... by rorykoehler on Monday August 10, 2020 @12:43AM (#24105625)
It always feels like going back in time whenever an American requests a cheque. I haven't filled one in for over 15 years at this stage.
Re:Fed announces details of new interbank service to support... by awad on Monday August 10, 2020 @02:24PM (#24112375)
One thing about checks that perhaps doesn't get touched on a lot...plenty of businesses use them as part of their accounts payable process wherein they are invoiced on some type of payment terms (whether it's due on receipt or commonly within 30/60/90 days). An unintended but extremely (ab)used feature here is being able to pad out the actual time between receipt of invoice and when the money actually leaves your bank account because 'check is in the mail, should be there in a few days' is an acceptable answer when accounts receivable on the other end inquires about your overdue payment, effectively turning net 30 into net 40. Now, same could in theory be said for ACH since it takes up to a few days to settle depending on the hops between banks, but setting up each vendor's ACH details in a system that may or may not be set up to even do so is overhead compared to cutting checks. All in, the massive inefficiency leads to a vicious cycle of everyone in the chain getting paid late and then doing the same forward. Which sucks.
Re:Fed announces details of new interbank service to support... by rorykoehler on Monday August 10, 2020 @03:27PM (#24113061)
I never understood why businesses give out free loans to other businesses like this. You used the service or got the product so you pay immediately.
Re:Fed announces details of new interbank service to support... by RonanTheGrey on Monday August 10, 2020 @02:51PM (#24112671)
And whenever a company - even overseas ones - request a check/cheque to "verify ownership" of a checking or current account.

I'm like -- what century do you live in? Since when a) is that an appropriate way to verify an account, and b) does anyone even use cheques anymore?! Most banks don't even issue them anymore and most people don't have them.

Re:Fed announces details of new interbank service to support... by riffraff on Monday August 10, 2020 @01:22AM (#24105832)
I am curious, what did you use to make significant one-time payments? E.g. house, or car.

Where I'm from (Italy) we still use cheques, and where I live (Hungary) they never used them. This was odd for me.

This resulted in people here buying expensive items by going around with a literal bag of money, or people having to walk into a bank together.

Possibly now it's solved with instant payments and everyone having a mobile banking app, I don't know.

Re:Fed announces details of new interbank service to support... by Sander_Marechal on Monday August 10, 2020 @03:33AM (#24106567)
Here in The Netherlands, instant electronic payments with your debit card (pinnen) has been widely available since 1990. People sometimes used cheques before that, but even then it was rare. Most large payments happened by "Acceptgiro". It's a form that the sender would mail to the bank to authorize a payment to another bank account. Not sure if there's a proper English name for it.
Re:Fed announces details of new interbank service to support... by leokennis on Monday August 10, 2020 @04:50AM (#24107001)
Please note that "pin" transactions are not settled instantly. It's just that when you pay via pin, the vendor of the machine (most likely CCV or similar) guarantees the shop they get the money.

The actual money transfers (the €5 you paid at some shop from your account to the pin terminal vendor, and the hourly or daily total for that shop from the vendor to the shop's internal account) take place hours after the fact.

So for all parties involved it seems instant, but technology wise it's still more or less batched, but seems instant based on trust.

Of course in The Netherlands, we have SEPA Instant Payments now (based on but not entirely the same as the European IP scheme). These are actually instant; when you pay, account balances of you and the creditor (at the other bank) are updated within 5 seconds.

Re:Fed announces details of new interbank service to support... by Sander_Marechal on Monday August 10, 2020 @05:02AM (#24107074)
You are right. I meant "instant" as in, I can pay and the merchant has immediate feedback that the transaction is approved. As opposed to things like bank transfers which take one or more business days to be confirmed.
Re:Fed announces details of new interbank service to support... by skeletal88 on Monday August 10, 2020 @08:46AM (#24108644)
When I bought my apartment I was at the notary, with the previous owners, a bank representantive and me. The bank person gave me a paper payment for which she had filled already and I had to sign it.

Here in Estonia, or northern europe.. or even eastern europe, nobody uses cheques, nobody has ever seen one I guess.

I haven't bought a car yet, but I guess I would just get the payment details for the car and go to a bank office, give them the seller's bank account information and tell them to transfer the money.

Big purchases won't be helped by instant transactions or mobile banking because there are daily limits on your account, for your protection, so that when someone somehow manages to get into your account (though it should be impossible.. they would need to get my mobile phone, and get my 2 pin numbers that I have memorised. Maybe when someone is forced to go to their internet bank by threat of violence? and transfer money then), then they couldn't take all the money in the account in one day.

Re:Fed announces details of new interbank service to support... by vishnugupta on Monday August 10, 2020 @10:23AM (#24109551)
Similar experience for me in The Netherlands while buying the house. Except that the banker wasn’t present, they had wired money to the notary’s escrow account ahead of the purchase meeting.

The bank didn’t even issue me a check book when I opened my account. Tells you something about the use of check payment here.

Interestingly, it’s been two years since I used cash. I even stopped carrying it in my wallet. And close to an year since I last used my debit card. Apple Pay is incredibly convenient.

Re:Fed announces details of new interbank service to support... by MandieD on Monday August 10, 2020 @04:07AM (#24106759)
In Germany, we use the same transfer orders (“Überweisung”) that we use for smaller payments for things up to about 50k EUR. These used to be paper forms printed by your bank, but I’ve been exclusively used them online the 15 years I’ve had a German bank account.

When we bought our cars, we just upped the daily transfer limit. I’m not sure how my husband transferred the down payment for our house, though — it was all in his savings account, and was above that 50k EUR maximum daily transfer limit. The proceeds of the mortgage we took for the rest was transferred by the bank to the seller once the bank was satisfied with the purchase contract and that the Grundbuch (city property registry) was clear.

Re:Fed announces details of new interbank service to support... by Reelin on Monday August 10, 2020 @01:09AM (#24105754)
I don't use them very often but they still serve a purpose. You don't have to know the payment details for the receiving party, just their name. You don't need an electronic device or an internet connection.

Of course you have to be more mindful about fraud when accepting one but in many scenarios they prove quite useful.

Re:Fed announces details of new interbank service to support... by intellirogue on Monday August 10, 2020 @05:14AM (#24107141)
As the physical buildings are closed for Covid-19, the US Consulates in Germany are renewing passports by mail, with cheque as the only accepted payment method.

Germany doesn't have cheques.

Re:Fed announces details of new interbank service to support... by boruto on Monday August 10, 2020 @02:32AM (#24106235)
There is SEPA instant in Europe which is quite recent. But most banks charge to send money through it or have not implemented the sending part yet.
Re:Fed announces details of new interbank service to support... by usr1106 on Monday August 10, 2020 @03:25AM (#24106521)
SEPA instant started November 2017. I have 3 banks in 2 SEPA countries, none of them is participating. Not that I would need it, because SEPA transfers which are "free", mandatorily offered by every bank and take only 1 banking day. But there could be use cases for instantaneously.

https://www.europeanpaymentscouncil.eu/what-we-do/sepa-insta...

Re:Fed announces details of new interbank service to support... by boruto on Monday August 10, 2020 @03:54AM (#24106679)
Not until 2019 did central banks started to ask banks to implement SEPA instant.

Normal SEPA does not work in weekends just like ACH even though the core process is moving XML files to an shared FTP server.

SEPA instant could be starting point for mobile based payments in Eurozone which is currently not present in anyway.

Re:Fed announces details of new interbank service to support... by antihero on Monday August 10, 2020 @05:27AM (#24107229)
A whole day? That's absolute madness. Why does it take a day when money is electronic and nothing has to physically move?
Re:Fed announces details of new interbank service to support... by boruto on Monday August 10, 2020 @05:37AM (#24107283)
The basic working is this,

you give a SEPA transfer order to your bank in the afternoon.

Your bank consolidates all the transfers for the day in a big XML file and puts it in an ftp server in the evening.

Bundesbank pull it from there and puts the XML file in other banks ftp server.

Other bank pull it from there and completes the transaction.

In case the account does not exist or something happens the whole thing has to happen again to get your money back.

This is similar to BACS in UK.

Re:Fed announces details of new interbank service to support... by antihero on Monday August 10, 2020 @06:14AM (#24107515)
Man the EU really needs to mandate compliance with SEPA Instant. Quite tragic that three years later and customers are still waiting on batch processes. FPS really is lush.
Re:Fed announces details of new interbank service to support... by skeletal88 on Monday August 10, 2020 @08:40AM (#24108598)
In Estonia all the large banks have implemented it, and they don't charge for sending the payments either. All payments are by default instant.
Re:Fed announces details of new interbank service to support... by mixmastamyk on Sunday August 09, 2020 @08:01PM (#24104020)
Not to mention potentially malicious rent-seeking third parties inserted and selling financial info.
Re:Fed announces details of new interbank service to support... by orthecreedence on Monday August 10, 2020 @02:31AM (#24106230)
Why is this downvoted? We have three major credit bureaus, and only just recently one got hacked and leaked everyone's info. Finance in the US is full of third-party jackasses that make money by doing nothing other than acting as gatekeepers. It's the definition of rent-seeking.
Re:Fed announces details of new interbank service to support... by mixmastamyk on Monday August 10, 2020 @03:09AM (#24106449)
Yes, was also thinking unnecessary players like venmo or mobile pay. Weren't needed in places with modern banking.