Timeline for answer to Unauthorized Withdrawal After Sharing Bank Details: Questions on Risk and Prevention by littleadv
Current License: CC BY-SA 4.0
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| when toggle format | what | by | license | comment | |
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| yesterday | comment | added | littleadv | @Brian right. As I wrote in the answer. These are usually more expensive than the (usually) free consumer accounts, and would require additional hops to go through. Often times businesses create accounts for specific distributions, so if you get a check from a business it is possible that the account disappears after you cash it, or is at least zeroed out until a next payment due. | |
| yesterday | comment | added | Brian | @littleadv: Business accounts typically offer ways block unauthorized debits. Otherwise, no business would be willing to mail checks (since every check leaks account details). | |
| yesterday | comment | added | littleadv | @Zuriel Generally, since ACH debits are treated as checks, they're considered preapproved. I'm not aware of a bank in the US that would hold a debit and wait for your approval, unless it's an overdraft situation or they already suspect fraud themselves. You can set alerts for notifications though, in almost any bank. | |
| yesterday | comment | added | keshlam | Some banks will let you set a threshold above which they will immediately inform you of a transaction; some will let you set a threshold of above which they will want confirmation. Shop around, if this is important to you. (I have the former at my credit union; I have not investigated the latter.) | |
| yesterday | comment | added | Zuriel | @keshlam, yes, I did not lose money; all it costs me are inconveniences (calling the customer service, closing and opening a bank account, updating my bank information to other people, etc.) It seems to be reasonable to request my approval (such as sending a text message to me) when such a withdrawal is requested. | |
| yesterday | comment | added | littleadv | @Zuriel people can also rob banks. But laws are in place to protect customers from fraud and criminals. You have recourse, and in this case - fairly straightforward. | |
| yesterday | comment | added | keshlam | The safety for the customer comes in your ability to say "that transaction was a forgery" and be repaid. The safety for the bank comes in the ability to drag back the money, leaving the other bank to try to drag it back in turn, and from their ability to take action if they think you are abusing the system to cancel legitimate transactions. Very similar, in fact, to how chargebacks work with credit cards. It isn't a perfect solution, but it works well enough for banks to offer the service. Engineering, not science; recognize the failure modes and design to be able to operate despite them. | |
| yesterday | comment | added | Zuriel | Thank you for this information! It sounds very unsafe as people can obtain my routing number and account number relatively easily. I am surprised it is the way it works today. | |
| 2 days ago | history | answered | littleadv | CC BY-SA 4.0 |