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why bank transfer is not popular

Discussion in 'Business & Tax Advice' started by augustwu, May 22, 2020 at 8:57 AM.

  1. augustwu

    augustwu Senior Member

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    If you have experience in Alibaba or you have experience do business
    with Chinese, we use bank transfer many times even normal people.
    But I ask many USA people, most of them never have experience with
    bank transfer, it seems very difficult in the US, even the ACH wire transfer.
    We can do bank transfer on the mobile app directly.don't need go to bank
     
  2. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

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    Banking systems are different from country to country. Wire transfers can take some time and they can have high fees or at least higher than PayPal, the Square Cash App or whatever people use to send money. I believe cheque payments are also still popular in the US, which is an unknown payment form in many countries.

    In EU where i live domestic wire transfers now work like PayPal, as in they're instant payments and you can do them online. You also don't need the bank account number of the recepient. Everyone can link an email address or a phone number to his/her bank account and the sender can use any of those to send money. Most of this is due to a recent change. It took some time to get here.

    You wouldn't expect it, but in several first world countries the banking system is not too advanced and even if there's a will, a fundamental change usually takes years with all the legislation misery and actual system testing procedure.
     
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  3. nakamura

    nakamura Elite Member

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    If you are doing international bank transfers its not really fast or reliable. It might take days. Depending on where you are from and on your bank they even might start asking you questions about the transactions.

    There are easier and faster ways. I once sent money from my local german bank account to someone outside the EU and it took 4 days. The bank didn't even work on weekend, so it took even longer. Now imagine you could just press one button and the other guy would immediately receive the money...
     
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  4. onlinemarketer12

    onlinemarketer12 Elite Member

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    All the banks do not allow international transfers so easily and may charge very high fees for it.
     
  5. theRevolt

    theRevolt Jr. VIP Jr. VIP

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    Different systems, I mean do you know paper checks? Those are very common in the US and like unheard of in other countries (almost nobody uses them).
    The US online banking system is pretty stone age in these things, their advancements have been
    - Wow you can now take a picture of the check to deposit (instead of just having bank transfers, as they are 1 day or even same day in the EU)
    - You have cashier's check that you pay for, basically, you pay the bank the money of the check, so that way it is guaranteed to the person you give the check (unlike personal checks that can bounce)
    - Now for wire transfers you often pay $10-25 or more .. yep it's a joke. So most will use payment apps or other bank apps that emulate your wire transfer and send the money to the other person

    Basic stuff your country likely had 10-20 years ago is just trickling in here (but on the flipside, of course, anything CC related is often more advanced here than elsewhere).

    Now, for paying stuff it makes no sense to use bank wires as there is no discount, not instant etc. Thus everybody uses CC as the merchant pays the fee (obviously rolled into price somehow)
     
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  6. StalwartVA

    StalwartVA Junior Member

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    Maybe because of the fees. Or baning is just different from country to country
     
  7. WebTG

    WebTG Jr. VIP Jr. VIP

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    In some country like india they may ask for remittamce code, and believe me itcan delay the process to weeks. Paypal is probably the worst service when compare to charges and commission rate but they are fastest and popular. An alternative of paypal will be definitely welcome in the community.
     
  8. t2van

    t2van Power Member

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    The printer I used in China kept asking me to do bank transfer I kept telling him it will take 28 days and cost me £55 to send. Even though I always used to pay his credit card processing fee he had the money instantly and was done and dusted.

    We agreed once to just "try" he said he would post on proof from bank I sent the money - I provided proof he posted... 48 days it took him to get the money - he's not once asked me since to pay by bank transfer!