• filter:
  • Page :
  • 1
  • Text Only
  • Search this Topic »
Voting History
rated:
My customer asked me to provide bank acct no. & rounting no. to pay (direct deposit) my invoice (to avoid PayPal fee). What are the risks to float my bank acct & rounting no.?

Member Summary
Most Recent Posts
"If you've ever paid any bill online ever, besides the CC option, there's usually a bank option.  There you just enter y... (more)

OneBread (Nov. 14, 2016 @ 7:44p) |

... It works exactly like that. You must not know many check/debit users. I don't know many, but of those I know two who... (more)

Bend3r (Nov. 14, 2016 @ 7:56p) |

ACH has no requirement that the requester is the owner of the account.

xoneinax (Nov. 14, 2016 @ 10:41p) |

Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

rated:
Well if you write him a check , he will have it

rated:
rufflesinc said:   Well if you write him a check , he will have it
Only if it's a personal check. Cashier's check would not have account info

rated:
I don't see it as worse than a check because it contains the same numbers. Just make sure it's clear your authorization for the debit is one time only. What if you have a disagreement over a cost overrun or quality of work and he just debits your account for the final payment anyway?

Have you done business with them before? Trust them?

rated:
TravelerMSY said:   I don't see it as worse than a check because it contains the same numbers. Just make sure it's clear your authorization for the debit is one time only. What if you have a disagreement over a cost overrun or quality of work and he just debits your account for the final payment anyway?

Have you done business with them before? Trust them?

  Sorry, I correct. Customer not Contractor. He pays me.

rated:
Sorry. Never mind then.

rated:
runoff said:   
TravelerMSY said:   I don't see it as worse than a check because it contains the same numbers. Just make sure it's clear your authorization for the debit is one time only. What if you have a disagreement over a cost overrun or quality of work and he just debits your account for the final payment anyway?

Have you done business with them before? Trust them?

  Sorry, I correct. Customer not Contractor. He pays me.

  make sure it's not a nigerian prince

rated:
If you have positive pay on your business account it's a non-issue. I think you can accept/reject debit items in real time,

rated:
Can he not write you a check for your invoice?

rated:
If you do this a lot, just open another account solely for receiving funds. Transfer out daily or whatever.

rated:
Facebook Messenger or Square Cash solve this problem precisely and are free. They mask respective routing/account numbers while allowing direct debit-to-debit transfers.

rated:
How much do you trust him and his employees? How big a company is his business?  IF you really trust his company,  this can be the quickest and surest way to be paid.
Be aware you are providing his company the keys to the kingdom. Yes they can deposit, but they can also withdraw any amount. Most DD agreements incorporate both actions. That allows them to withdraw if they overpay you or feel you owe them something like damages to their product that you may be responsible.
IF he is a small company, he can get a personal PayPal account without fee depending on the number of checks they put out.
OR
Ask about PoPMoney as an alternative at many  banks.

 

rated:
Chase Quickpay is free to send or receive money to/from anyone with a US bank account, so long as one of you have a Chase checking account.

rated:
JW10 said:   How much do you trust him and his employees? How big a company is his business?  IF you really trust his company,  this can be the quickest and surest way to be paid.
Be aware you are providing his company the keys to the kingdom. Yes they can deposit, but they can also withdraw any amount. Most DD agreements incorporate both actions. That allows them to withdraw if they overpay you or feel you owe them something like damages to their product that you may be responsible.
IF he is a small company, he can get a personal PayPal account without fee depending on the number of checks they put out.
OR
Ask about PoPMoney as an alternative at many  banks.

 

I disagree.  How do they have the keys to your kingdom?  How can they withdraw from your account?  The risk is about the same as if they have a check from you, which has a routing # and your account #.  The risk is actually a little less because a check would also have your address and signature.  The risk is they can create fake checks with your account # and routing #, then write checks to themselves.

In order to have the keys to your kingdom, they would need to link to your account.  I know when I link my two accounts together, I have to provide the routing # and account #.  The bank would then make two small trial deposits to that account.  Then I have to verify the two trial deposits.  The only way I can verify what was deposited is to login to that account to find out.  Unless they can login to your account, they wouldn't be able to verify the trial deposits.

With that being said, it's always scary and risky to give out your account # and routing #.  I wouldn't just give it out carelessly or post it on the internet for everyone to see.  But you have to balance the risk with the convenience.

rated:
GoldenSacks said:   Chase Quickpay is free to send or receive money to/from anyone with a US bank account, so long as one of you have a Chase checking account.
  There is a maximum amount you can pay with Chase Quickpay.  I think the max is $2,000.

rated:
Trial balances are the new and coming trend, but several exceptions exist.

rated:
OneBread said:   In order to have the keys to your kingdom, they would need to link to your account.That is not how ACH works; no link at all is required.

ACH only requires routing number and account number.

rated:
ClearXchange is a better, long-term answer to this issue (Chase/BofA/Wells/CapitalOne/US Bank). The limits are very generous, but it is not yet designed for business banking (although I don't know if it is actually disallowed). Just an email or mobile phone number is all that is needed with no need to disclose bank or account number. When people refer to Chase Quickpay, they may not realize that ClearXchange is embedded automatically based on the recipient.

Rasheed

rated:
xoneinax said:   
OneBread said:   In order to have the keys to your kingdom, they would need to link to your account.
That is not how ACH works; no link at all is required.

ACH only requires routing number and account number.

  If no link is required, then they can't widthdraw from your account.  Therefore they do not have the keys to your kingdom.  They can certainly make a payment to your account though.

rated:
OneBread said:   
xoneinax said:   
OneBread said:   In order to have the keys to your kingdom, they would need to link to your account.
That is not how ACH works; no link at all is required.

ACH only requires routing number and account number.

  If no link is required, then they can't widthdraw from your account.  Therefore they do not have the keys to your kingdom.  They can certainly make a payment to your account though.

If you've ever paid any bill online ever, besides the CC option, there's usually a bank option.  There you just enter your routing and account number.  This uses ACH and there's no confirmation on the bank end at all (i.e. no micro deposits).  

The onus is on the consumer to catch any unauthorized debits.  I think you have 60 days from when your monthly statement is printed to notify the bank, otherwise your money is gone.

betcha don't feel so safe anymore, huh?  

rated:
Have the customer just do a bill pay... if you are not in the system, it will cut you a check and mail it to you.

rated:
libralibra said:   
OneBread said:   
xoneinax said:   
OneBread said:   In order to have the keys to your kingdom, they would need to link to your account.
That is not how ACH works; no link at all is required.

ACH only requires routing number and account number.

  If no link is required, then they can't widthdraw from your account.  Therefore they do not have the keys to your kingdom.  They can certainly make a payment to your account though.

If you've ever paid any bill online ever, besides the CC option, there's usually a bank option.  There you just enter your routing and account number.  This uses ACH and there's no confirmation on the bank end at all (i.e. no micro deposits).  

The onus is on the consumer to catch any unauthorized debits.  I think you have 60 days from when your monthly statement is printed to notify the bank, otherwise your money is gone.

betcha don't feel so safe anymore, huh?  

  "If you've ever paid any bill online ever, besides the CC option, there's usually a bank option.  There you just enter your routing and account number.  This uses ACH and there's no confirmation on the bank end at all (i.e. no micro deposits). "  

I doubt that this will work if you are not the owner of that account.  Otherwise the ACH system will be in chaos by now, people will use someone elses routing # and account # to pay their bills.  There are plenty of checks floating around to get this info.

rated:
OneBread said:   
libralibra said:   
  "If you've ever paid any bill online ever, besides the CC option, there's usually a bank option.  There you just enter your routing and account number.  This uses ACH and there's no confirmation on the bank end at all (i.e. no micro deposits). "  

I doubt that this will work if you are not the owner of that account.  Otherwise the ACH system will be in chaos by now, people will use someone elses routing # and account # to pay their bills.  There are plenty of checks floating around to get this info.


 
... It works exactly like that. You must not know many check/debit users. I don't know many, but of those I know two who have had fraud ACH payments.

ACH isn't any worse than checks though. All you need to print up your own, perfectly valid physical checks, is the account number and routing number. Then you can pay with that new check you printed yourself with someone else's account number.

It's why check fraud is still larger $$$$ overall than credit fraud (even before the chip cards), but less transactions. It's high-risk because you'll get hunted down for writing fraudulent checks, so it's only done with large check amounts. (Although contrary to that observation, the two ACH examples I gave were for smaller ~$X00 amounts....)

rated:
OneBread said:   I doubt that this will work if you are not the owner of that account.  Otherwise the ACH system will be in chaos by now, people will use someone elses routing # and account # to pay their bills.  There are plenty of checks floating around to get this info.ACH has no requirement that the requester is the owner of the account.

  • Quick Reply:  Have something quick to contribute? Just reply below and you're done! hide Quick Reply
     
    Click here for full-featured reply.


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2016