Serious question. Why exactly do American banks not have the capability for people to transfer money to other people’s accounts directly?

26 comments

1. Zelle is run by the banks.

   It’s exactly what you are describing, a first party way of moving money.

2. Many banks have Zelle in their internal system so you don’t have to download the app

3. Zelle is the name for the bank service. It’s direct account-to-account transfer.

4. They absolutely do.

   > It’s 2023, surely American banking technology can be good enough to achieve something as simple as bank account > bank account transfers without the need for a 3rd party app?

   They do, apps simply make it more convenient.

5. I can transfer money to anyone’s account but Zelle is just easy

6. Your post is wrong. Zelle is a bank transfer.

   Did you get your info from the “bum ass Canadians don’t have CashApp” meme?

7. No, “surely” there is not a need for such technology to exist for free.

   No other country in the world has 4,800 separate commercial banks.
   Russia is a distant second with about 400.

   It is really, really difficult to create a system that allows all 4800+ agencies to have a trusted direct (or correspondent) relationship with every one of the other 4800+ agencies.

   With a system like the US uses with the ACH/NACHA system, it takes a while longer but the individual banks don’t have to take such serious risks of loss, nor concern themselves as much with liquidity.

   Look at the details of those Zelle, Cash App and Square apps. Look for the unhappy people who have been ripped off. The account holder is taking the risk, not the bank.

   If we want direct transfer – it is going to cost someone. Money, risk, time, liquidity – all variable, and all things nobody wants to give up easily.

8. Because that’s how it’s always been.

   Some banks directly connect to each other, but most bank to bank transfers in the form of checks, or direct deposit/debit run through the federal reserve.

   That system is in bad need of upgrading, but this a quasi-government agency with an extremely low risk tolerance overseeing the most complex banking and financial system in the world.

   That brings me to another point, we have a lot of banks, more per capita than just about every other developed country. The US banking sector is huge, clunky, and decentralized, hence the need for the fed’s systems.

9. Oh, look. Another person who took false information at face value. 😑

   Why are people so ready to believe ANYTHING about America is long as it’s bad?

10. Zelle and Popmoney exist for that reason, and are owned by banks .

    Not every bank uses them, though.

11. So what you are describing is Zelle

12. The actual answer: Zelle is a bank transfer and doesn’t require a third party app.

    The answer you want: Because we live in the stone age and Europeans are so much better than us.

13. Huh? When my dad was paying me back he was able to deposit money into my savings at the bank without me even being there. Or am I not understanding?

14. Wire transfers are a thing. They’re just inconvenient. What other countries have simple nationalized apps for bank to bank transfer? I’m honestly curious.

15. I don’t use third party apps to transfer bank to bank. I use my bank to do that. At the least I can personally confirm you can do it with Wells Fargo and Navy Federal. I don’t think this is a missing feature. I think you’re missing it.

16. The banks I’m with I can do that. Do not all banks allow it?

17. we should just start making shit up about zelle at this point. it seems like everyone else does. why should we be left out of the fun?

18. we do

19. Ah, this old chestnut.

20. It’s called Zelle.

    *Next question!*

21. Zelle is what the banks call their service

22. Piss off

23. Why does this keep being brought up? Who is telling this to foreigners? Zelle is a bank to bank transfer system, I open up my Bank of America app and click the Zelle section and I can send money directly to someone else’s bank account.

24. I didn’t even know there was a separate Zelle app tbh. I just log into my bank and click the Zelle button and I make my *bank to bank* transfers there. I seriously doubt there is any significant difference between Zelle and some other country’s bank to bank transfer system, aside from whatever name you use to describe it.

    As for Square, that seems like an apples to oranges comparison. Square, AFAIK, is for individual sellers and small businesses. It just allows them to accept cards instead of just cash. Lots of food trucks have it, little stands at a farmers market or crafts fair will have it, that kinda thing. Are you saying other countries don’t need that because they just make a bank-to-bank transaction with the cashier or something? Like you go to a food truck or street food vendor and do a transfer instead of just using a card?

25. That’s what Zelle is

26. 🤦🏽‍♀️ Bu..bu..but Zelle is..

    Nevermind