PayPal Alternative? - What's your opinion?


I'm thinking about opening an electronic checking account with ING that would allow me to avoid PayPal fees. Basically the account would allow me to send money to anyone as long as I had their email address. Once I direct the funds to go to that person, ING pulls the money from my account, and sends the recipient an email that money is available. The recipient clicks the link in the email, inputs their own bank routing number and account number, and - zip - the money is theirs.

Does anyone already use this? Or would you be willing to input your bank info to receive money in this way?
grannyring

Showing 1 response by mmike84

Every bank does this now. It's called wiring money. The difference as you describe it is that ING is not charging a fee where most banks charge $20-$30 to wire money. However I suspect they are charging a fee somewhere in the fine print and you have not been able to discern it yet.

Personally I am doubtful most users will ever be comfortable with giving you their bank info. Yes Grannyring you are correct about the check information on the check, but I think you'll be pushing a rock up hill trying to convince many that it's OK to give that info out.

Paypal charges too much for what they do in relation to what we do. 3.5% is inconsequential when you transact $10, but it becomes substantial when it is $10,000. They need a sliding scale payment system, but since they're making money hand over fist I don't see that changing unless a competitor comes into the market.

For me I either accept paypal if the buyer is willing to eat the fee, or I encourage the buyer to either write a personal check or get a cashier's check from a bank I have here. I specifically have a Chase account simply because it is the biggest bank with branches in the most places. If the buyer uses Wells Fargo, or Chase, or Bank of America, etc. I can simply take their personal check in to that bank and cash it. No waiting. If I am the buyer I find out who the seller banks with, or has access to if it's some small bank, and then I get a cashier's check from that bank. No waiting.

One last thought and then I'll shut up. Paypal has an e-check feature that transacts money for a $5 fee. The catch is the $ has to either be in the paypal account, or come from a bank account (as the CC company charges 3% which is why Paypal specifically encourages you to pay with a bank account, and makes it difficult to select pay by credit card). It also take 5-7 days to fully transfer.

Mike