Ask HN: How do you send money to friends? In Canada, we have email money transfers. Every major bank supports this function. This acts as the main payment method for collecting money. How do people in the United States and other countries do this? Do people actually use paypal, square up, and google wallet? |
• Second best, bank to bank transfers of money to your trusted payee. International transfers are in a state of flux, and may after 2013 be able to avoid high fees. Not yet though.
Otherwise:
• Trusted payee who is sophisticated and smart: Bitcoin.
• Trusted USA to USA party: Dwolla. See: http://Dwolla.com Dwolla only for trusted parties or individuals! Dwolla has surprisingly small cost, because they do NOT deal with credit cards. Best for others who have DWOLLA accounts, or USA to USA bank transactions or people willing and able to submit to USA law and bank regime.
• The credit card interbank system typically has fees in the vicinity of 2% to 3% of the gross transaction. Avoid.
• Avoid PayPal. The PayPal terms of service agreement indicates that whatever PayPal decides in a dispute, PayPal's decision is final without appeal. This in known as a contract of adhesion in the USA, where one party has all of the power. Because of this, do not use PayPal. Look up "contract of adhesion" for details.
• Most other online services rely on the credit card interbank system with its high fees of 2% to 3% for transfers. Avoid.
Off Topic:
• Non-trusted parties? Don't deal with them without a letter of credit. Look up "letter of credit" for details.
The reason for its quick traction is that if you hook up your checking account you can send money without any fees, and also because they give out referral bonuses for inviting others.
Free bank to bank transfers to anyone you deal with regularly seems like a completely necessary part of a useful consumer banking system to me.
So far international wire or Western Union fees outweigh net losses due to market volatility. We'll see how that continues...