Online Business Banking Wire Transfers Online Business Banking Wire Transfers Online: Fill & Download for Free

The time required to transfer funds between two banks is a function of the conventions of the system used to transfer the funds and, even more importantly, the way that risk of fraud is shared among the sending and receiving banks.Wire transfers:Interbank wire transfers are routinely same day transactions even for transactions of >$1 billion. However, once a wire transfer is sent, the money is gone. This creates significant risks for banks which have a fairly complex set of procedures to manage risk for wire transfers and charge a high fee to pay for that effort (often $10-30 per transaction). The flip side of this is that a recipient of a wire transfer knows for sure that they have the money when it is received, which is important for large dollar commercial transactions.ACH (Automated Clearing House):Most online funds transfer services such as PayPal's bank account transfers, and the bank to bank transfer function that many banks offer in online banking are processed through an ACH network. ACH networks were created as an electronic alternative to checks in the 1970s and in many ways still retain some features of paper check processing.Settlement time: Until 2009, all ACH transactions were settled one or two days after they are initiated. In 2009, the Federal Reserve created an optional same day settlement method, but adoption appears limited.Risk management: Fraud is a major issue for ACH transactions. A key reason is that ACH transactions, especially debit ACH transactions (ACH instructions initiated by the receiver of funds that "pulls" money from the payer), is that ACH transactions can be reversed. When an ACH debit is initiated, the sending bank has no idea if there is enough money in the account, or even if such an account exists. Instead, the bank that receives an ACH request has the option to reject the transaction for various reasons (e.g. insufficient funds, customer disputes). While most ACH returns occur within 24 hours they can happen as much as 60 days after the initial request if there is a customer dispute exposing the originating bank to risk throughout that period.The futureThe incentives for banks to speed up ACH processing for consumer bank to bank transfers are limited because:More time between initiation and settlement provides more opportunity to catch fraudulent transactionsThe impact of faster processing on the most common applications (e.g., payroll direct deposit, recurring billing) is minimal especially since these transactions can be scheduled in advance to settle on the desired date.ACH is cost center for most banks unlike wire transfers and card payments that generate substantial revenue.The rules of ACH processing are rather complex and vary according to about a dozen different transaction types. See http://www.nacha.org/c/achrules.cfm for further details.Third party services:ACH is the plumbing that enables virtually all third party P2P payment systems (PayPal, Popmoney, ZashPay, Venmo, Dwolla, etc.) so these systems all need to deal with the same challenges with timing and fraud.

Initially, it was spam. Very big part of unsolicitated email is sent from infected computers. That’s how they can do it basically for free.Quickly, criminal gangs evolved from spam to keyloggers, that record the keyboard on an infected computer. Then they just wait for the victim to do online shopping and type in either their Paypal password or their credit card details.Then we started seeing banking trojans, targeting home computers used for online banking. These were modifying bank wire transfers and online bill paying so that the money you send ends up in the wrong place.Right now, the biggest money is being made with ransom trojans. The business model behind ransom trojans is very straightforward: steal information and sell it to the highest bidder; in the case of a typical home computer, the highest bidder is the owner of the information himself.

I ran Dell's consumer business in Japan from 2008-2010, and the majority of our sales were online. During that time the main payment methods in descending order of popularity were:Cash On DeliveryConvenience StoreCredit CardBank wire transferFinancing