What a difference your choice of banks makes (don't choose Wells Fargo)

[Petunia 100]

Is payment processing like this (ACH and/or bill pay) not entirely automated? At what point would the be a human in the loop, except perhaps as a periodic audit to ensure the system is functioning accurately? And I guess stuffing a check into the envelope....

I would think the process is going to vary quite a bit from one organization to the next; that was my experience. But all of that data is stored someplace, for years, and sometimes printed for various reasons. People who work in payment processing, accounts receivable, customer service, IT, records management, janitorial staff, be they employees or outside vendors, could easily have access to at least some customer bank account information.

[kork13]

That was automated decades ago.

lol shows what I know

[Nutria]

And I guess stuffing a check into the envelope....

That was automated decades ago.

[kork13]

Perhaps it comes from having worked in payment processing for more than one company, but I am not willing to blindly trust that every employee at every company with access to my personal bank account information will take care to keep the information secure. It's not only the person processing your payment who has access.

this is something i wondered if i should be worried about.

Is payment processing like this (ACH and/or bill pay) not entirely automated? At what point would the be a human in the loop, except perhaps as a periodic audit to ensure the system is functioning accurately? And I guess stuffing a check into the envelope....

[LivingAlmostLarge]

I am just the opposite. Perhaps it comes from having worked in payment processing for more than one company, but I am not willing to blindly trust that every employee at every company with access to my personal bank account information will take care to keep the information secure. It's not only the person processing your payment who has access.

this is something i wondered if i should be worried about.

[Petunia 100]

Oh hell no! Not just "hell no!" but HELL NO is a bank with the reputation of Wells Fargo taking money out of my bank account with the promise of paying someone else.

(My bill pay service used to do that, and I was never happy with it. I'm glad they changed to the "just send a check" method.)

I am just the opposite. Perhaps it comes from having worked in payment processing for more than one company, but I am not willing to blindly trust that every employee at every company with access to my personal bank account information will take care to keep the information secure. It's not only the person processing your payment who has access.

[Petunia 100]

I didn't think of that. If it's a business payment of some sort, you could end up with a late fee or even service cancellation. Hopefully the bank would reimburse you for any fees incurred. If it's a personal payment, like a gift, you'd never know and the recipient wouldn't know they were supposed to get a check from you. At least the traditional way, you would see that your check never cleared.

If it is a gift, or my share of an expense owed to a personal friend, I use Zelle or Facebook Pay.

I would hope that I would be reimbursed any late fees for a missing payment, but it's never happened so it's never been tested.

[Nutria]

Not all banks process bill pay in the same way. When I submit a bill pay, Wells Fargo immediately withdraws the money from my account and sends a payment from their own account. My bank account information does not appear on the check which is sent. There is a memo section which gives my name and any other info I have specified, such as "Invoice 123" or "Account 999". Some banks use the method you describe; probably the payment is not withdrawn from your account until the payee deposits the check.

So, for me, that is another plus for Wells Fargo.

Oh hell no! Not just "hell no!" but HELL NO is a bank with the reputation of Wells Fargo taking money out of my bank account with the promise of paying someone else.

(My bill pay service used to do that, and I was never happy with it. I'm glad they changed to the "just send a check" method.)

[disneysteve]

Yes, that is a drawback. Also, if the payee doesn't receive the check, I won't know that unless they say so (or send me a late notice of some sort).

I didn't think of that. If it's a business payment of some sort, you could end up with a late fee or even service cancellation. Hopefully the bank would reimburse you for any fees incurred. If it's a personal payment, like a gift, you'd never know and the recipient wouldn't know they were supposed to get a check from you. At least the traditional way, you would see that your check never cleared.

[Petunia 100]

Of course the flip side of that is "immediately withdraws the money from my account". When I make an electronic payment like that, it doesn't come out until the check is cashed by the recipient. Our checking account doesn't pay interest so it doesn't matter either way, but if your account does pay interest you're losing that float time (and WF is gaining it on their end).

Yes, that is a drawback. Also, if the payee doesn't receive the check, I won't know that unless they say so (or send me a late notice of some sort).

[disneysteve]

Not all banks process bill pay in the same way. When I submit a bill pay, Wells Fargo immediately withdraws the money from my account and sends a payment from their own account.

Of course the flip side of that is "immediately withdraws the money from my account". When I make an electronic payment like that, it doesn't come out until the check is cashed by the recipient. Our checking account doesn't pay interest so it doesn't matter either way, but if your account does pay interest you're losing that float time (and WF is gaining it on their end).

[Petunia 100]

????

How else is money withdrawn from your account?

(I also use a bill pay service, and the checks mailed -- for example, to my landlady -- are essentially from me: my name, account number, etc just laser printed and mailed by the bill pay company.)

Not all banks process bill pay in the same way. When I submit a bill pay, Wells Fargo immediately withdraws the money from my account and sends a payment from their own account. My bank account information does not appear on the check which is sent. There is a memo section which gives my name and any other info I have specified, such as "Invoice 123" or "Account 999". Some banks use the method you describe; probably the payment is not withdrawn from your account until the payee deposits the check.

So, for me, that is another plus for Wells Fargo.

[disneysteve]

????

How else is money withdrawn from your account?

(I also use a bill pay service, and the checks mailed -- for example, to my landlady -- are essentially from me: my name, account number, etc just laser printed and mailed by the bill pay company.)

Same here. My cousin used to send me a check for his share of the cell phone bill (he was on our family plan). The check was issued by the bank but looked just like any other check. Without the account info, there would be no way to cash it.

[Nutria]

There isn't much difference. (I prefer to not write checks as well. I use bill pay. My bank account information does not appear on the bill pay checks which are sent out.)

????

How else is money withdrawn from your account?

(I also use a bill pay service, and the checks mailed -- for example, to my landlady -- are essentially from me: my name, account number, etc just laser printed and mailed by the bill pay company.)

[Petunia 100]

I've always found this viewpoint a little funny... What's the difference between giving a business or individual your account information vs. handing them a paper check that has all of the same information (and more) printed directly on the check? I'd generally argue that if you can't trust a business/individual to not lose/misuse/abuse your information, you probably should avoid such a financial relationship with them in the first place...

There isn't much difference. (I prefer to not write checks as well. I use bill pay. My bank account information does not appear on the bill pay checks which are sent out.)