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Recycles dryer sheets
I recall when transferring funds via ACH between banks first became a thing. You list you account and routing number, they send the other institution a micro trial deposit, you wait a day of two to verify the amounts, your linked account then becomes active and you can start making transfers. This can be done between any bank, credit union or brokerage in the US as long as you have the account and routing number.
It seems today some financial institutions are turning to third party companies like Plaid and others to handle their transfers. When this method works, your linked account is verified instantly. No waiting to verify trial deposits. Sounds great. The problem is they don't always work. It requires your counterparties to allow the verifier to log in via their bank. Some institutions do not participate and the provider does not have full coverage across all the banks where the trial deposit method does.
At least in my case this has been frustrating. I have funds at different institutions and do a lot of transferring to move funds to my checking account to cover bills, move money to send a Zelle payment to someone, move funds that were direct deposited into a low interest account to a HYSA or move money to my local bank if I need cash at an ATM. Some of these accounts I cannot link directly because of the reasons mentioned so I find myself doing financial gymnastics to get the funds where they need to go by transferring to one account, then from there to another. I don't know if anyone else is experiencing this problem, but for someone who does a lot of transferring like me it's annoying.
Okay.. I'm done venting.
It seems today some financial institutions are turning to third party companies like Plaid and others to handle their transfers. When this method works, your linked account is verified instantly. No waiting to verify trial deposits. Sounds great. The problem is they don't always work. It requires your counterparties to allow the verifier to log in via their bank. Some institutions do not participate and the provider does not have full coverage across all the banks where the trial deposit method does.
At least in my case this has been frustrating. I have funds at different institutions and do a lot of transferring to move funds to my checking account to cover bills, move money to send a Zelle payment to someone, move funds that were direct deposited into a low interest account to a HYSA or move money to my local bank if I need cash at an ATM. Some of these accounts I cannot link directly because of the reasons mentioned so I find myself doing financial gymnastics to get the funds where they need to go by transferring to one account, then from there to another. I don't know if anyone else is experiencing this problem, but for someone who does a lot of transferring like me it's annoying.
Okay.. I'm done venting.