Facebook Introduces Payment System

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).

Comments

Yeah, Right.

[eedwardsjr]

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?

I dont see the need for this feature...

[cbeaudry]

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.

Not credit... so your account stays drained

[mlts]

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.

Re:Not credit... so your account stays drained

[nehumanuscrede]

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.

Re:Not credit... so your account stays drained

[RenderSeven]

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*!!!

Re:Not credit... so your account stays drained

[mlts]

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.

The NEED.

[Anonymous Coward]

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.

My life has been missing this

[Just Some Guy]

"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.