Hassle linking accounts to send ACH transfers

[indiajust]

Years ago I set up a auto pull for bill payer. Minor snafu led to major headaches. So I am push only. Reading all these various and sundry issues, I feel validated in going Schwab only, with their automated billpayer and wire services. I have not used a bank or credit union in over 20 years.

I suspect that coming problems with the Fed will lead to some sort of financial repression within the banking system. Might be wise for me to have a few months of living expenses in a separate account.

Difficulties in the past led me to avoid the issue. I don't have any accounts to transfer to or from.

 

[rayvt]

Should I ever run into this again, I'll be sure to look, and search on their site for the 'old' way of 2 deposits.
I don't want to give login credentials to some 3rd party.

I have given up and accepted that Plaid instant verification is going to become the only way.

What I do is log into my target bank and change my login ID, do the Plaid verification, then change my login ID back to what it was.

I originally changed the password temporarily, but the login ID gives them a first step into my login. Somebody could then try different passwords. But if they don't have the ID, then knowing the password doesn't do them any good.

 

[kimmsa]

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.

I have recently had the same issue-in fact Discover Bank doesn’t allow you to transfer to another persons Discover amount- how stupid is that-my mom was giving a generous gift to granddaughter-thought it would be easy-nope-so BOA makes you either go into the office or you can do it if you have a debit card-I have not had a debit card in 30 years-so I just got one just for this purpose-I’ve complained to both banks-it May be for security but it doesn’t make sense-first wouldn’t you think Discover would rather keep funds within its banks and two since when are debit cards secure-ok now I’m done venting

 

[mebden]

This is why I use online banks never had any problems transferring money to my only B & M bank which is Capital one for checking purposes and I did amounts over 50K at a time money was there in a days time for my use