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Facebook Introduces Payment System

Posted by Soulskill on from the because-i-want-there-to-be-17-different-ways-for-people-to-send-me-$6 dept.

An anonymous reader writes: Today Facebook announced a new feature for its Messenger services: the ability to send money to friends. The payment system will work by connecting debit cards from Visa or Mastercard — no credit cards, and no bank accounts. The company claims they aren't trying to make money on it, since it'd be such a small business compared to their ad revenue. "Once the $ button is tapped, users simply enter the dollar amount and hit Pay. The money is instantly taken from their debit account and delivered to the recipient's debit account. Facebook never holds the money, though the receiver's bank will usually take a few days to make the funds available as is standard. Both users see a confirmation message detailing the transfer status and time." Facebook says transaction information is encrypted, and users will protect their cards with a dedicated passcode (or fingerprint identification).

7 of 95 comments (clear)

  1. I dont see the need for this feature... by cbeaudry · · Score: 4, Interesting

    Also 2 day delay will instantly kill this feature.

    I dont know if this is available in the USA.

    However here in Canada, from any bank I can do an Interact e-mail transfer.

    Recipient receives the e-mail in 20-30 mins, followings instructions and cash is transferred bank to bank instantly.
    Cost is $1.50. which is less than ATMs charge to withdraw your cash.

    I pay my rent this way (as there is an electronic log), and transfer money to the ex for child related things, again because of electronic log.

    1. Re:I dont see the need for this feature... by green1 · · Score: 3, Interesting

      You need a better bank.
      I pay zero to send or receive email money transfers, and zero to withdraw cash from an ATM (not that I ever use an ATM any more...)

      Interac (no "t") is why Canada is years ahead of the US on electronic payments. one type of card available to almost everyone (unlike credit cards which can be hard to get if you are poor, unemployed, or have bad credit) and which works at practically every retailer in the entire country, usually without any fees.

      Any time I travel outside of Canada, whether to the USA or Europe, I'm always amazed at how far behind places are for electronic payments. I haven't needed cash in my wallet in Canada in years, you simply never find a situation where it's needed. Every business takes Interac, Visa, and MasterCard, and I pay the same price in the store whether I use that or cash, so I might as well do the convenient way, and every person can receive email money transfers. The only reason left for cash in Canada is for "anonymity" (and it's always debatable how well that works anyway)

  2. Greetings, friends. Do you wish to look as happy by Anonymous Coward · · Score: 2, Interesting

    Greetings, friends. Do you wish to look as happy as me? Well, you've got the power inside you right now. So, use it, and send one dollar to Happy Dude, Don't delay, eternal happiness is just a dollar away.

  3. Re:Not credit... so your account stays drained by Luckyo · · Score: 3, Interesting

    Introducing maximum daily transfer limit, unique PINs and other old inventions that effectively solve the problem for ATM fraud.

    Which incidentally work just as well here, as the crime is very much similar.

  4. Re:Facebook already has enough email "chain letter by acroyear · · Score: 3, Interesting

    For that matter, it was in pre-messenger "Chat" for Facebook that many of us were hit by those "Hey, I'm stuck in London and my wallet was stolen, can you send me some cash?" scams from hacked accounts.

    Making it easy to say yes to that kind of crap is just ridiculous.

    --
    "But remember, most lynch mobs aren't this nice." (H.Simpson)
    -- Joe
  5. Re:Not credit... so your account stays drained by mlts · · Score: 4, Interesting

    A friend of mine tried that idea with another service. When he got nailed while on vacation, instead of the bank saying, "sorry, no funds" and stopping transactions, the bank still allowed it and added a hefty NSF charge onto each transaction. Even more of a kicker was the fact that he was out on vacation and didn't realize the negative quad-digit balance until he got back... and by that time, he got stuck in Chex Systems's database, which means you are pretty much fscked credit-wise (or even trying to get a savings account) for seven years.

  6. Re:Not credit... so your account stays drained by tlhIngan · · Score: 3, Interesting

    They won't do so because of the CC fees that are involved on a per transaction basis.

    Debit also incurs interchange fees. Typically 25 cents plus 25 cents plus 1% (the merchant pays 25 cents, the user pays 25 cents, and the merchant then pays another 1% of the transaction as fees).

    The only reason I knew about the debit fees to customers was a retailer who was super honest kept refunding people who used debit a quarter. he said his bank charges him 25 cents, the user gets another 25 cents tacked on to the amount and there's also a tiny percentage taken as well. Not as much as credit, but still. He decided long ago he'd eat all the fees so he paid everyone who paid in debit a quarter out of the till.