It makes me think twice about check-writing privileges.
The banking system in this country is so antiquated. With the national standard of routing/account numbers with the federal reserve, it should be as simple as issuing a payment, authorizing a 2FA request, and seeing the cash instantly in the recipient’s account. This 2FA request could be delegated to a caregiver in cases like the above.
There should be a common API for this and it should be included as part of basic banking services. The account number shouldn’t even be shared for the transaction - just the sender and recipient’s usernames.
However, instead we have third party payment services like Paypal and Zelle, who all want a cut of the action and make the financial institution or the user pay fees to exchange money. These companies, particularly Paypal, are notorious for unfairly freezing funds for arbitrary reasons.
Paying bills such as a mortgage or the local water district requires giving the company your banking information, which exposes your personal data even further. Bill pay services fill some of this gap, but at the same time, try making specialized payments like principal-only through a bill pay service. It’s damn near impossible. My local water district is only set up for check-based payments from these services as well, and it takes near a week for the check to make its way through the USPS.
My solution to all of this - I use an “exposed” checking account that I fund with enough money to pay my bills, and use that account information to pay bills. This keeps my main set of liquid accounts as safe as I can, while still taking advantage of these electronic services.
Still though, I wish there was an instant ACH service that could fill the role that these p2p payment services look to fill.
I don’t think the main problem was with Citibank. Chime bank (I never heard of) didn’t do the transfer of the $50k.
I feel at ease with transfers using Alliant CU. But surely keep good security on all accounts. TIAA Bank always sends an e-mail when I transfer funds from my MM liquid acct 1.40%.
I rarely use a paper check for bills. Problem here is, rural farming companies don’t use Credit cards & only accept check or cash. But, if possible all bills are paid with Citi dc card.
Someone here mentioned, not using PayPal. I’ll have to admit I often use PP for quick ordering. It’s so easy & you don’t have type out address etc. Guess I should give second thought on continuing with PP.
I concede I’ve had no trouble with my Citi Double Cash card . . . . nothing other that overzealous security annoyances and that was in the past.
But as a rural person I do not do business with Citi at any other level. Nor would I patronize Chase or any of the other large money center banks for stuff like CDs or liquid accounts of any sort. I just don’t trust any of them to be responsive if there is trouble. And, indeed, that is exactly what happened with Citi to the guy in the article I posted. He was unable to elicit from Citi timely answers as to what was going on. They had his dough tied up, beyond his control. And I bet they never paid him a dime of interest.
My preference is to deal with smaller financial institutions which offer me some chance of reaching higher ups should need arise, and do not confine me to dealing with underpaid lower level corporate bureaucrats. I do not want to be in a situation where I must seek assistance from the press to get answers and resolve problems.
Agreed, age and decreasing ability is certainly a factor. Probably the best things to do in this case is simplify everything as much as possible, and maybe even get access to their accounts to monitor them.
IIRC, PayPal has never been a problem for making payments, checking out, etc. The problem was with receiving PayPal payments. Especially on eBay, when eBay owned PayPal.
Done. Now, if I can just get my father to come directly to his desk after getting the mail. Last week, my sister found a stack of mail sitting on his bush hog.
Not gonna happen, sadly. They’re too private … yes, even to children who are grandparents … and not too far from great grandparents.
But, I hold out hope. My father shocked me when we were nearing the time for the “should you still be driving” talk. He didn’t renew his license and got rid of this truck before I had the opportunity to broach the subject.
Scripta is right . . . at least in my experience. I routinely pay with PayPal. I also routinely receive a portion of my side hustle money via PayPal. This is money which I earn as reward on my 2% PP World Mastercard.
I have had no problems over a protracted period of time. However, like scripta, I also have heard the horror stories of PayPal fleecing, or at least seriously annoying, eBay sellers. I do not sell on eBay so these problems have not touched me personally.
Gotta hand it to that generation. Actually, your parents have the right idea.
Even if they don’t want to turn everything over to you & your sister, you’re both close by They need not have worries.
I’m relatively older, (to some here) but it made me angry when my daughter-in law suggested I do “such & such” with some funds. I told my son about it, & D-I-L hasn’t bought up finances again.
Actually, Son & DIL do well financially. But if the truth be known they should take suggestions from me.
I suggested once that they should make a monthly budget. Their answer, “our business manager handles the bills”.
This is what I’ve been doing for years. I have a checking account with a number of links for payments and a savings account with a few links for payment, plus a supplemental savings account with no links. Most of my funds are kept in the supplemental account or savings until needed. The supplemental account has no outside links and I make no payments from it.
This is not foolproof but at least it’s another level of obstacle for someone trying to get access to your funds.
Does anyone know if Alliant allows a member to have more than 1 checking account? That might be a good solution. Or even a second account - maybe setup under spouse or joint if both have individual accounts. You could then transfer between members using one ‘exposed’ and the other more isolated.
I think it’s just a single checking account, but they allow multiple savings accounts.
Each savings account gives you 6 withdrawals a month… so you could have one account for your mortgage, one for your utilities, etc. This also gives you the benefit of earning the (slightly) higher savings rate. Most billers allow ACH from savings accounts, so it should not be a problem.
I think the point of such “supplemental” or “unexposed” account is to be as far away as possible from any “exposed” account. Multiple accounts at the same institution could all become “exposed” to an identity thief who gets full access.
You probably want your “unexposed” and “exposed” accounts at different banks entirely. I use Discover checking + savings as the hub to pay most of my bills, but this is because all those bills are paid electronically, so no human should ever see my checking account number or know that I have accounts at Discover. I consider those “unexposed”. Any checks I write are from a checking account at another bank – that’s my “exposed” account and it rarely has more than a few hundred bucks.
Last week, my sister found a stack of mail sitting on his bush hog. 
