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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).

20 of 95 comments (clear)

  1. Yeah, Right. by eedwardsjr · · Score: 5, Insightful

    Considering how often I see people get hacked, what happens when random hacker breaks in and send multiple payments to his launderer? How exactly does this get refunded?

    1. Re:Yeah, Right. by hAckz0r · · Score: 2

      I could not agree more. They are the most wide open and hackable social media site, and paring up with the one form of currency where you have absolutely no recourse in repudiation of any transactions. Its the 'perfect storm' just waiting to happen. At least with a CC you have limited liability, but in this case you can only make sure you don't have enough money in the account for someone to steal. That means moving money between accounts just to buy something.

  2. 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 bill_mcgonigle · · Score: 2

      I dont know if this is available in the USA.

      It's not. Wire transfers typically cost $30-40. Paypal is much preferred for small amounts. One 'hack' for larger amounts than Paypal will allow is to have an account at national bank and have your friend go to one and deposit cash into your account. Except the national banks usually charge a monthly fee for small accounts, so it's not cheap and it's certainly not easy. Facebook money will be very popular here.

      We can't have nice things 'cause terrists (used to be "drugs and mob crime and pedos"). Land of the Free and all that jazz.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
    2. 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)

  3. Not credit... so your account stays drained by mlts · · Score: 5, Informative

    Great, another ACH debit mechanism, which means that when a fraudster empties a bank account, it stays emptied because there is nowhere the protection present that a credit card has in place.

    I would place this on the heap of "run, don't walk away from", also-ran payment standards like CurrenC... avoid at all costs.

    Now, if they had used the Visa/MC credit mechanism, things would be different. Fraud wouldn't completely destroy an end user's bank account.

    1. Re:Not credit... so your account stays drained by nehumanuscrede · · Score: 4, Informative

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

      IF you're going to be dumb enough to sign up for such a silly service, at least make sure you're using an alternate account with a minimum amount of funds in it so when it does get compromised, it isn't an epic event. Disable overdraft protection, unlink it from your primary accounts.

      Overall, it's a bad idea anyway. It's Facebook lol.

    2. 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.

    3. Re:Not credit... so your account stays drained by RenderSeven · · Score: 5, Funny

      Overall, it's a bad idea anyway.

      But but but... I'll get so many new Friend requests from Nigeria! Finally, I'll be *popular*!!!

    4. 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.

    5. 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.

  4. 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.

  5. Sounds just like Square Cash by wile_e_wonka · · Score: 2

    This looks to me just like Square Cash.

  6. Facebook already has enough email "chain letters." by BarbaraHudson · · Score: 3, Insightful

    Facebook has way too many fake contests, chain posting asking you to share with everyone, etc.

    This will quickly enable all sorts of scams.

    --
    "Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
  7. the receiver's bank will usually take a few days ? by Anonymous Coward · · Score: 3, Insightful

    Are there still countries where this is legal ?
    We got rid of this shit 20 years ago.

  8. The NEED. by Anonymous Coward · · Score: 5, Insightful

    THIS will tell Facebook who among your friends you are willing to send money to.

    Let that sink in for a bit.

    And giving money to someone is a pretty good sign that they are a real friend and not some fake facebook 'friend'.

    Think about the value of THAT data to advertisers and also to Homeland security.

    THOSE relationships will be sold off at a very high premium.

  9. What phone? by Gizan · · Score: 2

    So, we all know there are dumb people out there that wont turn on the security features, and when their phone gets stolen, their bank account gets emptied to a facebook account that no longer exists!

  10. 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
  11. My life has been missing this by Just+Some+Guy · · Score: 4, Funny

    "Self", I said, "you haven't been feeling fully integrated into today's online society. What could you do to make sure that a major corporation with a history of disdain for its users and their privacy could come to have possession of your financial data? Banks are so old fashioned. Your checking account should be social!"

    Today is a happy day indeed.

    --
    Dewey, what part of this looks like authorities should be involved?
  12. Facebook Introduces Payment System by SternisheFan · · Score: 2
    What, FB wants to pay me to use it?

    Nah, still don't want it.