Capital One to limit P2P transfers - "up to their discretion"

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From the email: 

"In June, we’ll update the Person2Person (P2P) Payments transfer limits in the Electronic Funds Transfer (EFT) section of your checking account disclosure.

Here’s the scoop:

  • Currently, outbound transfers (payments sent from your account) are capped at $2,000 a day, up to a total of $10,000 over a 30-day period. There is no cap on the amount of money that can be sent to your account.
  • Starting in June, limits on transfers to and from your account will be up to our discretion. These limits are designed to be flexible to help improve the security of your service.

Here’s the new fine print:
P2P Payments is subject to limits on the amount and frequency of transfers to and from your account. These limits are designed to be flexible in order to protect the security and integrity of the Service and accounts, including protecting you and all other participants of the Service. These limitations may be based on confidential fraud and risk criteria that are essential to our management of risk and the protection of you and the integrity of the Service, and may be modified at our sole discretion without advance notice."

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I believe we are talking about clearXchange powered transfers.

I think I have posted otherwise that there appears to be some "management" of the real-time transfers beyond stated timelines and limits. I suspect that there is some bad behavior happening in the network that are harder to stop because the transfers are credited in mostly real-time and tend to avoid the ACH/Wire processes.

I believe these issues are considered "soft" limits, but could be troublesome for heavy users or for lower rated bank accounts initiating transfers.

Rasheed

maxfleischer said:   the protection of you . . . .

I hate it when banks lie, and that people believe it. You know perfectly well that if the bank wasn't on the hook for the fraud, they wouldn't care if you lost your life savings.

Could someone please explain what this means? And why is it upto the bank's discretion what the limits are? Why isnt there a disclosure of a specific limit? Isnt this illegal?

Nebul@ said:   Could someone please explain what this means? And why is it upto the bank's discretion what the limits are? Why isnt there a disclosure of a specific limit? Isnt this illegal?
It is probably in response to some anti-money laundring (AML) rules. Here's a blurb about them: "The purpose of the AML rules is to help detect and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation."

When these transactions occur near real time they don't have as much ability to stop/enforce. It appears they are giving themselves some wiggle room to allow for proper AML vetting.
  
Illegal: no. You don't like it you can take your business elsewhere. 
 



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