An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

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neurosphere
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An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by neurosphere » Mon Oct 30, 2017 5:52 pm

Hi all.

An individual owes me money. I gave him my address to send a check. Instead he asked for my checking account routing number and account number so that he could send funds via ACH transfer.

I have not heard of individuals doing an ACH transfer, but Google tells me that some banks allow this.

He emailed to say he sent a "test" $1 transfer, and is asking me to confirm that I see this.

Question: Is this a legitimate way for individuals to send money to one another? Is it safe? Anything I should be worried about?

I'm used to businesses (e.g. Google Wallet/Pay) asking for this information and sending test amounts to confirm my bank info and identity. But this is the first time I've been asked by an individual to provide such information.

student
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by student » Mon Oct 30, 2017 6:04 pm

I don't understand why he does not want to send you a check. The question is are you willing to send him a check if you owe him money. If the answer is yes, then there is no issue as all the information will be on the check.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by Duckie » Mon Oct 30, 2017 6:06 pm

neurosphere wrote:He emailed to say he sent a "test" $1 transfer, and is asking me to confirm that I see this.
So you've already given him the information?

denovo
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by denovo » Mon Oct 30, 2017 6:09 pm

Do you know and trust them

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by Gill » Mon Oct 30, 2017 6:16 pm

All that information is available on your check. It’s hardly confidential.
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by indexfundfan » Mon Oct 30, 2017 6:18 pm

I think business accounts can let you do "blind" outgoing ACH. He should not be asking you to confirm the test deposits.

If you confirm the test deposits, he could be linking up your account so that he can pull from your account for all you know. I wouldn't confirm those deposits if I were you, unless you know this is a trustworthy person.
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by Katietsu » Mon Oct 30, 2017 6:18 pm

Are you actually confirming a test deposit online? That would be worrisome. On the other hand, if the friend sent you a dollar and is just making sure you got it verbally, that would be normal. If I were entering new payment information, I might want to make sure I had typed everything correctly.


I have done this for about 4 years with family members. Even gave a wedding gift this way. As mentioned, you are giving the same information away any time you write a check.

That said, I am cautious who I would pay by check.

As to the why, some of us just hate having to use paper. I do everything I can electronically.
Last edited by Katietsu on Mon Oct 30, 2017 6:22 pm, edited 1 time in total.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by neurosphere » Mon Oct 30, 2017 6:20 pm

student wrote:
Mon Oct 30, 2017 6:04 pm
I don't understand why he does not want to send you a check. The question is are you willing to send him a check if you owe him money. If the answer is yes, then there is no issue as all the information will be on the check.
He stated ACH was "more secure" than paper check.

And, I send paper checks to people all the time, which has the same routing and account numbers. Agrees, this information is all over the place...
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by indexfundfan » Mon Oct 30, 2017 6:21 pm

I should add that the ABA and account numbers are pretty much known once you issue a check. So you are not disclosing any additional information if you provide these information.

But I would be very wary to confirm the test deposits.
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by samsoes » Mon Oct 30, 2017 6:21 pm

OP, you can open a second checking account and give the person the new routing/acct numbers. Transfer out what's ACH'd to you, keeping the it with a balance of $1 (or whatever it needs to be to avoid fees), and use it only for similar situations in the future.
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by neurosphere » Mon Oct 30, 2017 6:21 pm

Duckie wrote:
Mon Oct 30, 2017 6:06 pm
neurosphere wrote:He emailed to say he sent a "test" $1 transfer, and is asking me to confirm that I see this.
So you've already given him the information?
Yes, I gave it. And then, :oops: maybe I should have paused.

But...

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by indexfundfan » Mon Oct 30, 2017 6:23 pm

neurosphere wrote:
Mon Oct 30, 2017 6:21 pm
Duckie wrote:
Mon Oct 30, 2017 6:06 pm
neurosphere wrote:He emailed to say he sent a "test" $1 transfer, and is asking me to confirm that I see this.
So you've already given him the information?
Yes, I gave it. And then, :oops: maybe I should have paused.

But...
Wait I think I misunderstood. You are not confirming test deposits. You are just confirming that he could send you a dollar.

In which case, I don't see anything wrong. He just wanted to make sure you can receive the money before he sends the rest.
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by Katietsu » Mon Oct 30, 2017 6:24 pm

I just saw that you were going to have the check mailed otherwise. I have not mailed a check in about 10 years. I think you are fine.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by neurosphere » Mon Oct 30, 2017 6:26 pm

indexfundfan wrote:
Mon Oct 30, 2017 6:23 pm
neurosphere wrote:
Mon Oct 30, 2017 6:21 pm
Duckie wrote:
Mon Oct 30, 2017 6:06 pm
neurosphere wrote:He emailed to say he sent a "test" $1 transfer, and is asking me to confirm that I see this.
So you've already given him the information?
Yes, I gave it. And then, :oops: maybe I should have paused.

But...
Wait I think I misunderstood. You are not confirming test deposits. You are just confirming that he could send you a dollar.

In which case, I don't see anything wrong. He just wanted to make sure you can receive the money before he sends the rest.
Yes, he stated he sent me a dollar, in order to confirm the account number is correct. Isn't that the same as confirming a "test deposit"?

With that information (account info), could he somehow PULL funds from my account?

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by arsenalfan » Mon Oct 30, 2017 6:26 pm

I wouldn't worry.

I give all my renters my routing and checking account number on the lease - they have deposited this way for years. Many european renters were surprised we still use checks.

With the routing and checking account numbers you can only push funds to them, they cannot pull funds from the account.

FYI now there is zelle - kind of like venmo/paypal, but backed by the major banks. Basically lets you push money to anyone for free via their mobile number or email account (they have to link their bank account). Just started using it - did a $1 test transaction and refunded it. FWIW many major banks do this too to verify they have the correct account (deposit test amounts, and have you verify the amount - i.e. $0.12 and $0.33).

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by chevca » Mon Oct 30, 2017 6:27 pm

DW pays daycare and child support to her ex this way through our credit union. We had to get their account and routing numbers. Nothing to it.

As others said, that information is on a check. If they had sent you a paper check, you would have their account and routing number. Not much can be done with this info, or it wouldn't be on the bottom of the check. No worries. Be glad they're getting the money to you. :happy

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by Fallible » Mon Oct 30, 2017 6:33 pm

neurosphere wrote:
Mon Oct 30, 2017 6:21 pm
Duckie wrote:
Mon Oct 30, 2017 6:06 pm
neurosphere wrote:He emailed to say he sent a "test" $1 transfer, and is asking me to confirm that I see this.
So you've already given him the information?
Yes, I gave it. And then, :oops: maybe I should have paused.
But...
The issue seems to be either that you are not sure you can trust this particular individual who owes you money, or that you can't trust anyone who owes you money. If the former, what are the reasons? If the latter, it would've been better not to give him the information.
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by mptfan » Mon Oct 30, 2017 6:37 pm

neurosphere wrote:
Mon Oct 30, 2017 5:52 pm
I have not heard of individuals doing an ACH transfer, but Google tells me that some banks allow this.

He emailed to say he sent a "test" $1 transfer, and is asking me to confirm that I see this.

Question: Is this a legitimate way for individuals to send money to one another? Is it safe? Anything I should be worried about?
Yes, it is legitimate. It is no more risky than giving him a check, your account number and routing number are printed on the bottom of the check, so you are not giving him any more information than he would already have.

There are several ACH money transfer providers, one of the most popular is PopMoney, some banks or credit unions provide it as a service to it's customers.

Having said that, I would be just as careful about handing someone a check as I would about giving them my account number and routing number, I would not do either if I had some reason not to trust the person.

Not long ago I offered to pay my yard service guy using direct ACH transfers, and I asked him if he wanted to give me his account and routing information I could pay him directly by ACH instead of mailing paper checks, I was trying to be nice and make the process easier for both of us. He politely declined and I didn't push the issue, so I keep sending paper checks to him using my bill payer.
Last edited by mptfan on Mon Oct 30, 2017 6:43 pm, edited 2 times in total.
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by mervinj7 » Mon Oct 30, 2017 6:40 pm

Zelle is payment transfer system supported by most of the big banks. I use them for my renters and to pay my daycare. No issues with either.

https://zellepay.com/get-started

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by music_man » Mon Oct 30, 2017 6:41 pm

Most of the big banks now allow you to do electronic payments to other members from other banks with just an e-mail address or cell phone that allows text message. I would push for him to do it this way. It's more common and standardized now a days. Most of these banks use a common platform like PopMOney or Zelle and the method is backed by your bank.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by neurosphere » Mon Oct 30, 2017 6:41 pm

Fallible wrote:
Mon Oct 30, 2017 6:33 pm
The issue seems to be either that you are not sure you can trust this particular individual who owes you money, or that you can't trust anyone who owes you money. If the former, what are the reasons? If the latter, it would've been better not to give him the information.
good points, Fallible. I have no specific reason to trust or distrust this individual. In general, he appears trustworthy. I just have never been asked for this information (routing/account#) for a person-to-person ACH transfer.

Maybe I should ask a more general question:

Suppose an untrustworthy individual gets a hold of my routing/account#. What's my liability? Should I be worried?

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by mptfan » Mon Oct 30, 2017 6:47 pm

neurosphere wrote:
Mon Oct 30, 2017 6:41 pm
Suppose an untrustworthy individual gets a hold of my routing/account#. What's my liability? Should I be worried?
Anyone can order checks online and have them printed with any routing number and account number. So a fraudster could use your information to print checks for your account, and then attempt to use them in a fraudulent way to "cash" them or deposit them in another account.
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by carruthers209 » Mon Oct 30, 2017 6:55 pm

I have used PayPal in the past because it is seen as a safer way to send and receive money. My granddaughter uses it along with eBay for selling items to strangers which is what eBay is all about. It is harder to scam people with PayPal because it is sent to your PayPal account.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by strafe » Mon Oct 30, 2017 6:57 pm

neurosphere wrote:
Mon Oct 30, 2017 6:26 pm
indexfundfan wrote:
Mon Oct 30, 2017 6:23 pm
neurosphere wrote:
Mon Oct 30, 2017 6:21 pm
Duckie wrote:
Mon Oct 30, 2017 6:06 pm
neurosphere wrote:He emailed to say he sent a "test" $1 transfer, and is asking me to confirm that I see this.
So you've already given him the information?
Yes, I gave it. And then, :oops: maybe I should have paused.

But...
Wait I think I misunderstood. You are not confirming test deposits. You are just confirming that he could send you a dollar.

In which case, I don't see anything wrong. He just wanted to make sure you can receive the money before he sends the rest.
Yes, he stated he sent me a dollar, in order to confirm the account number is correct. Isn't that the same as confirming a "test deposit"?

With that information (account info), could he somehow PULL funds from my account?
I think others are advising you not to confirm the AMOUNT of the test deposit, which is often used as a sort of passcode when linking bank accounts for purpose of withdrawal.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by mptfan » Mon Oct 30, 2017 7:09 pm

strafe wrote:
Mon Oct 30, 2017 6:57 pm
I think others are advising you not to confirm the AMOUNT of the test deposit, which is often used as a sort of passcode when linking bank accounts for purpose of withdrawal.
Right. If he said "I sent $1 just to make sure I am sending it to the right account, did you get it?" I would feel comfortable saying yes. But if you really got $.67, I would NOT say "No, but I got 67 cents." If he said he sent $1, and you got $1, that sounds legit to me.

Perhaps I should be more clear..do not confirm the amount of the test deposit if it is different than the amount he told you he sent. If he told you that he sent $1, and you are confirming the amount that he already said, and the amount that was actually transferred, I see no harm in that. But, if he did not tell you in advance how much he sent, and he asked you to tell him the amount, that would be cause for concern.
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by azurekep » Mon Oct 30, 2017 8:45 pm

neurosphere wrote:
Mon Oct 30, 2017 5:52 pm
Hi all.

An individual owes me money. I gave him my address to send a check. Instead he asked for my checking account routing number and account number so that he could send funds via ACH transfer.
If the guy is financially savvy enough to do ACH transfers, you'd think he'd be savvy enough to have (or know how to use) online billpay. He could just set you up as a one-time recipient.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by petulant » Mon Oct 30, 2017 9:28 pm

mptfan wrote:
Mon Oct 30, 2017 7:09 pm
strafe wrote:
Mon Oct 30, 2017 6:57 pm
I think others are advising you not to confirm the AMOUNT of the test deposit, which is often used as a sort of passcode when linking bank accounts for purpose of withdrawal.
Right. If he said "I sent $1 just to make sure I am sending it to the right account, did you get it?" I would feel comfortable saying yes. But if you really got $.67, I would NOT say "No, but I got 67 cents." If he said he sent $1, and you got $1, that sounds legit to me.

Perhaps I should be more clear..do not confirm the amount of the test deposit if it is different than the amount he told you he sent. If he told you that he sent $1, and you are confirming the amount that he already said, and the amount that was actually transferred, I see no harm in that. But, if he did not tell you in advance how much he sent, and he asked you to tell him the amount, that would be cause for concern.
To add to that, some online payment tools like PayPal will confirm a bank account using test deposits before allowing a person to use the account for transactions. Those test deposits are usually something less than a dollar. If the person is asking what an amount like $.43 is, it indicates they may be setting up the account through an online payment tool.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by Sandtrap » Mon Oct 30, 2017 9:32 pm

I'm very old school.
I would tell him to mail me a cashiers check or money order.
Simple.
OTOH I have tenants who don't have checks. So they each have bank account numbers assigned to thier unit. They can pay on their cell phone or walk into any branch of my bank. And then some, pay with cashier's check or money orders.
Last edited by Sandtrap on Mon Oct 30, 2017 9:34 pm, edited 2 times in total.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by rob65 » Mon Oct 30, 2017 9:33 pm

My kids use something called Venmo to send money to friends.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by AAA » Mon Oct 30, 2017 9:41 pm

I've always wondered about these ACH transfers. When I link my bank account to an entity like Vanguard, Vanguard asks for the bank routing and account numbers. Once set up, I funds can be sent in either direction. But I never explicitly gave my bank the okay to release funds to Vanguard. Can anyone who knows the two numbers (on every check we write) initiate an outgoing ACH transfer from a bank account?

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by sambb » Mon Oct 30, 2017 9:46 pm

The info is already on a check.. dont understand how this is risky compared to writing a check.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by BV3273 » Mon Oct 30, 2017 9:55 pm

id just tell him to use PayPal.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by CAsage » Mon Oct 30, 2017 9:55 pm

azurekep wrote:
Mon Oct 30, 2017 8:45 pm
If the guy is financially savvy enough to do ACH transfers, you'd think he'd be savvy enough to have (or know how to use) online billpay. He could just set you up as a one-time recipient.
Concur with that one. Yes, the ACH routing and account numbers are nothing special. But I would be very leery about someone in case they are trying to link to your account. I am unclear about why he has no other options - bill pay where his bank mails you a check would certainly work if he does not have any checks, and he could initiate that online.... Strange, just sounds ... wrong....
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by mptfan » Mon Oct 30, 2017 10:19 pm

CAsage wrote:
Mon Oct 30, 2017 9:55 pm
azurekep wrote:
Mon Oct 30, 2017 8:45 pm
If the guy is financially savvy enough to do ACH transfers, you'd think he'd be savvy enough to have (or know how to use) online billpay. He could just set you up as a one-time recipient.
Concur with that one. Yes, the ACH routing and account numbers are nothing special. But I would be very leery about someone in case they are trying to link to your account. I am unclear about why he has no other options - bill pay where his bank mails you a check would certainly work if he does not have any checks, and he could initiate that online.... Strange, just sounds ... wrong....
I disagree. I am very much savvy enough to know how to use online billpay, I use it all the time. Nonetheless, I think for payments to an individual, doing an ACH transfer is better and more convenient for obvious reasons, it avoids printing checks, mailing checks, the possibility of lost mail, then the recipient of the check has to deposit the check...each of those steps involves unnecessary work and risk as compared to initiating a direct ACH transfer. I don't think the suggestion is strange at all.

If you stop and think about it, the whole process of paying with a check is very outdated in our electronic world...printing and filling out and writing numbers and dates and names on little pieces of paper, then buying a stamp or paying for postage and then putting those little pieces of paper inside more paper (an envelope), then writing an address on the front of the envelope, then find a mailbox and put the envelope in the mail, then wait for the postman to pick up the mail, deliver it to the post office, sort it, send it to it's destination, then wait for another postman to deliver it to it's destination, then wait for the recipient to get the envelope, open it, endorse it, make another trip to deposit it at his bank...the whole process is a waste of time and paper and postage and gas.

There is nothing strange about the suggestion to avoid that whole process altogether by transferring the money electronically.
Last edited by mptfan on Mon Oct 30, 2017 10:35 pm, edited 2 times in total.
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by mptfan » Mon Oct 30, 2017 10:28 pm

AAA wrote:
Mon Oct 30, 2017 9:41 pm
I've always wondered about these ACH transfers. When I link my bank account to an entity like Vanguard, Vanguard asks for the bank routing and account numbers. Once set up, I funds can be sent in either direction. But I never explicitly gave my bank the okay to release funds to Vanguard. Can anyone who knows the two numbers (on every check we write) initiate an outgoing ACH transfer from a bank account?
No. The "once set up" part of what you wrote is the most important part...Vanguard uses security measures to ensure that the bank account you set up is actually yours, the most obvious of which is to make test deposits to your account and then ask you to verify the amounts of the test deposits. Also, there is a waiting period during which you cannot transfer money into a newly set up bank account, and during that waiting period, Vanguard sends emails and letters (at least one of each I think) to you to confirm that you added the new account. Presumably if you did not do it, you would be alerted and notify Vanguard.
Last edited by mptfan on Mon Oct 30, 2017 10:31 pm, edited 2 times in total.
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by jbuzolich » Mon Oct 30, 2017 10:29 pm

I used Google wallet to request money recently and thought it was really easy. Just put in my friend's email and typed how much to ask for. On his side he entered his debit card and I entered mine on the receiving side. Credit came to my account the following day and only used the card already in my wallet.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by drk » Tue Oct 31, 2017 12:34 am

There are so many ways to freely, easily, and safely send money these days that involve no exchange of information aside from an email address or a phone number. You can use a debit card with Google Wallet or Square Cash with no concern, or Venmo/PayPal with some minor limits.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by CAsage » Tue Oct 31, 2017 4:50 am

mptfan wrote:
Mon Oct 30, 2017 10:19 pm
CAsage wrote:
Mon Oct 30, 2017 9:55 pm

Concur with that one. Yes, the ACH routing and account numbers are nothing special. But I would be very leery about someone in case they are trying to link to your account. I am unclear about why he has no other options - bill pay where his bank mails you a check would certainly work if he does not have any checks, and he could initiate that online.... Strange, just sounds ... wrong....
I disagree. I am very much savvy enough to know how to use online billpay, I use it all the time. Nonetheless, I think for payments to an individual, doing an ACH transfer is better and more convenient for obvious reasons, it avoids printing checks, mailing checks, the possibility of lost mail, then the recipient of the check has to deposit the check...each of those steps involves unnecessary work and risk as compared to initiating a direct ACH transfer. I don't think the suggestion is strange at all.
Of course checks are very old tech, and no longer used in some countries (my Danish relatives look quite askance at this). Enlighten me, can someone then send an ACH transfer WITHOUT having to confirm or test that $1.00 transfer first? That is the part that worried me, not the ACH transfer itself. With today's high level of identity theft and account fraud, is an ACH transfer protected from being a two-way access? Also, for a one-time transaction, I would be very worried that someone would type in the numbers wrong and there goes the money! With a check that I hand to a friend, they are going to be able to reliably deposit it to their account, no typo issues. I can't find info on that online (well, with 2 minutes of research...)

Edited (again) I suspect I am worrying too much. Consumer protection is far better than business protection, so it appears consumers are protected from illegal ACH withdrawals. I hope.

https://wallethub.com/edu/ach-payment/11932/
Last edited by CAsage on Tue Oct 31, 2017 10:07 am, edited 3 times in total.
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by oldcomputerguy » Tue Oct 31, 2017 5:02 am

sambb wrote:
Mon Oct 30, 2017 9:46 pm
The info is already on a check.. dont understand how this is risky compared to writing a check.
Yes, if it were the OP writing a check to the other party, there would be no way to prevent the other party acquiring the OP's routing and account numbers. But that does not apply here; the proposed transaction is in the other direction, with the other party (allegedly) sending money to the OP.

OP, I'm very much afraid you have opened a door you didn't want to open. I'd strongly suggest you keep a sharp eye on your checking account balance.
Anybody know why there's a 20-pound frozen turkey up in the light grid?

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Pajamas
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by Pajamas » Tue Oct 31, 2017 8:34 am

Seems like an unnecessary inconvenience to have to deal with such a complicated method of receiving money owed, but not particularly dangerous. I would probably avoid financial dealings with that person in the future if possible, or at least agree on a mutually-acceptable means of payment ahead of time, especially if that person is a pain in other ways, too.

susze
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by susze » Tue Oct 31, 2017 8:50 am

arsenalfan wrote:
Mon Oct 30, 2017 6:26 pm
I wouldn't worry.

I give all my renters my routing and checking account number on the lease - they have deposited this way for years. Many european renters were surprised we still use checks.

With the routing and checking account numbers you can only push funds to them, they cannot pull funds from the account.

FYI now there is zelle - kind of like venmo/paypal, but backed by the major banks. Basically lets you push money to anyone for free via their mobile number or email account (they have to link their bank account). Just started using it - did a $1 test transaction and refunded it. FWIW many major banks do this too to verify they have the correct account (deposit test amounts, and have you verify the amount - i.e. $0.12 and $0.33).
I thought you could pull funds. Isnt the info on the check the same exact info you put in for automatic bill pay whether its credit card payment or car payments etc? Maybe Name has to match but that maybe easy even if its a social security # match they could find it easy in county or city records if determined.

Also my understanding is that you can reverse the pull funds within 60 days of when they take it but thats in practice not sure how it really works but it is a rule.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by neurosphere » Tue Oct 31, 2017 8:56 am

oldcomputerguy wrote:
Tue Oct 31, 2017 5:02 am
OP, I'm very much afraid you have opened a door you didn't want to open. I'd strongly suggest you keep a sharp eye on your checking account balance.
Pajamas wrote:
Tue Oct 31, 2017 8:34 am
Seems like an unnecessary inconvenience to have to deal with such a complicated method of receiving money owed, but not particularly dangerous. I would probably avoid financial dealings with that person in the future if possible, or at least agree on a mutually-acceptable means of payment ahead of time, especially if that person is a pain in other ways, too.
For the record, there is no reason whatever for me not to trust this person.

And if indeed he can simply place money into my checking account, that's very convenient for me (there will likely be a series of payments over time he will need to make to me).

After doing some additional research as well as reading info/comments on this thread, it turns out that many banks allow ACH transfer to other individuals, and request/require bank info in order to do so. And it seems several BH have used this method to pay or receive payments. I had just never had someone desire to pay me in this way. I was only familiar with: cash, credit cards, paper check, online bill pay in the form of a mailed check from a bank, paypal, and other e-payments such as Google Pay. :)

But as always, I'll keep an eye on my transactions on a regular basis. :wink:

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Pajamas
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by Pajamas » Tue Oct 31, 2017 8:57 am

susze wrote:
Tue Oct 31, 2017 8:50 am

I thought you could pull funds. Isnt the info on the check the same exact info you put in for automatic bill pay whether its credit card payment or car payments etc?
Yes. My understanding is that many paper checks are actually converted to ACH transfers anyway. A check is basically just a request to transfer funds between accounts in a paper form vs. a purely electronic form.

Here:

http://achdirect.com/solutions/checkconversion.html

Point
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by Point » Tue Oct 31, 2017 9:02 am

ApplePay, PayPal and other methods are best for peer to peer transfers.

SirToolman
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by SirToolman » Tue Oct 31, 2017 9:35 am

CAsage wrote:
Mon Oct 30, 2017 9:55 pm

Enlighten me, can someone then send an ACH transfer WITHOUT having to confirm or test that $1.00 transfer first?
CAsage wrote:
Mon Oct 30, 2017 9:55 pm

Also, for a one-time transaction, I would be very worried that someone would type in the numbers wrong and there goes the money!
That's the point of the $1 test transaction. To confirm that the account numbers are correct before sending the whole amount.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by AAA » Tue Oct 31, 2017 9:42 am

mptfan wrote:
Mon Oct 30, 2017 10:28 pm
AAA wrote:
Mon Oct 30, 2017 9:41 pm
... Can anyone who knows the two numbers (on every check we write) initiate an outgoing ACH transfer from a bank account?
No. The "once set up" part of what you wrote is the most important part...Vanguard uses security measures to ensure that the bank account you set up is actually yours, the most obvious of which is to make test deposits to your account and then ask you to verify the amounts of the test deposits. Also, there is a waiting period during which you cannot transfer money into a newly set up bank account, and during that waiting period, Vanguard sends emails and letters (at least one of each I think) to you to confirm that you added the new account. Presumably if you did not do it, you would be alerted and notify Vanguard.
Sorry but I'm not following. What you write seems more to do with Vanguard making sure my account information is correct. I'm wondering how my bank allows a transfer TO Vanguard without my ever giving explicit permission to the bank to do so. And by extension, couldn't anyone who knows the routing and account numbers initiate a transfer to them?

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by dm200 » Tue Oct 31, 2017 10:20 am

Gill wrote:
Mon Oct 30, 2017 6:16 pm
All that information is available on your check. It’s hardly confidential.
Gill
Exactly ... Anyone to whom you have given a check has everything they need or want.

I am seeing more individuals do this through services such as Paypal.

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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by susze » Tue Oct 31, 2017 10:28 am

mptfan wrote:
Mon Oct 30, 2017 10:28 pm
AAA wrote:
Mon Oct 30, 2017 9:41 pm
I've always wondered about these ACH transfers. When I link my bank account to an entity like Vanguard, Vanguard asks for the bank routing and account numbers. Once set up, I funds can be sent in either direction. But I never explicitly gave my bank the okay to release funds to Vanguard. Can anyone who knows the two numbers (on every check we write) initiate an outgoing ACH transfer from a bank account?
No. The "once set up" part of what you wrote is the most important part...Vanguard uses security measures to ensure that the bank account you set up is actually yours, the most obvious of which is to make test deposits to your account and then ask you to verify the amounts of the test deposits. Also, there is a waiting period during which you cannot transfer money into a newly set up bank account, and during that waiting period, Vanguard sends emails and letters (at least one of each I think) to you to confirm that you added the new account. Presumably if you did not do it, you would be alerted and notify Vanguard.
Isnt that a Vanguard thing where they have extra security not sure every financial institution does this. Altho they should to some degree and it should be a regulation

quantAndHold
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by quantAndHold » Tue Oct 31, 2017 10:35 am

Everyone in my circle of acquaintances uses Venmo for stuff like this.

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Pajamas
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Re: An individual who owes me money wants my routing and account numbers for ACH transfer. Safe?

Post by Pajamas » Tue Oct 31, 2017 11:48 am

Point wrote:
Tue Oct 31, 2017 9:02 am
PayPal and other methods are best for peer to peer transfers.
PayPal charges significant fees.

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