robo-huh?

My reply to the MSG‘s frustrated, rhetorical query: “do you understand what about WIRING money takes 2-4 business days?”

the wiring thing has plagued me for years. it is faster for me to send my dad a check via USPS and for that check to clear his bank and mine than it is for me to wire it.

in 2006.

we’re >< this close to robot hookers with built-in jetpacks and espresso machines and yet we can’t figure out the electronic transfer of any sum of money.

our culture is doomed.

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Posted on 19 May 2006 in Linklog
  • David

    If you want another experience in frustration and the slowing down of time, have someone overseas send you a check to deposit in your own bank account. It will usually take a minimum of 4 weeks to clear.

  • monkeemind

    … where does one learn more about these robo-hookers?

  • j david

    This post has bugged me. I’ve poked at the issue a bit and learned a few things:

    1. The float. It take so long because the money transfer company and the banks involved want to use (and therefore tie-up) the money.

    2. The fees are wack. 5% to wire funds is typical. Wow. That’s nuts. Revenues are the 5%, plus the interest earned on the float, plus the benefits of the realtionship between the transfer companies and the banks that provide clearing services. This borders on the criminal, given their customer base–read on.

    3. The “customers” are often low paid service workers sending money to family. Many of these are here illegally. Of the $20 billion (that’s billion with a “b”) sent to Mexico by the estimated 9 million family members in the States, $18 billion went through the wires. Doing the math, that’s almost a billion dollars in fees, and another $10 million in returns on the float. Most of these folks use transfer agencies (think Western Union) because they are afraid that banks will report them to the government. Rather than earning nearly 6%on the money they earn, they’re paying that amount. (If you don’t think 6% is much, your money doubles in just over 12 years; and paying it rather than earning it is a 12% spread–that’s real money for folks who can’t afford it).

    This is our government at work.

    So, anyone want to start a service workers credit union?

    /end rant

  • http://jameslick.com James Lick

    Huh? I do lots of wire transfers and they always take less than 1 business day. Perhaps you are thinking about ACH transfers which usually take around 3 business days.