Facebook Messenger gains app-based person-to-person money transfers
In "coming months," Facebook is rolling out person-to-person money transfers in its Messenger apps for iOS, Android, and the Web, the social network announced on Tuesday.

Initiating a payment through Facebook Messenger involves tapping a new dollar sign button, entering the amount, and then selecting Pay. To send or receive cash, a person must add a Visa or MasterCard debit card issued by a U.S. bank to their Facebook account.
From there a person can add a custom PIN, and Facebook suggests two-factor account authentication as another layer of security. On iOS devices users can replace a PIN with fingerprints data stored in Touch ID.
Facebook states that the new payment systems are in a "secured environment that is separate from other parts of the Facebook network," and subject to extra monitoring. This includes an anti-fraud team tasked with looking for suspicious transfers.
Although money is technically transferred right away, it may take one to three days for cash to become available.
Messenger is not the first major chat service to allow payments between users. One alternative is Snapchat, which offers a similar function called Snapcash.

Initiating a payment through Facebook Messenger involves tapping a new dollar sign button, entering the amount, and then selecting Pay. To send or receive cash, a person must add a Visa or MasterCard debit card issued by a U.S. bank to their Facebook account.
From there a person can add a custom PIN, and Facebook suggests two-factor account authentication as another layer of security. On iOS devices users can replace a PIN with fingerprints data stored in Touch ID.
Facebook states that the new payment systems are in a "secured environment that is separate from other parts of the Facebook network," and subject to extra monitoring. This includes an anti-fraud team tasked with looking for suspicious transfers.
Although money is technically transferred right away, it may take one to three days for cash to become available.
Messenger is not the first major chat service to allow payments between users. One alternative is Snapchat, which offers a similar function called Snapcash.
Comments
No way in hell would I ever trust Facebook to handle financial transfers. I can already sense scammers salivating at the thought of hijacking one's Facebook account and going bonkers on the victim's credit card. No way.
I'm curious what is Facebook official policy with identity theft, reimbursement of funds, etc... when an account is hijacked. Blame the user for using a weak 30-character password?
Originally Posted by sflocal
I'm curious what is Facebook official policy with identity theft, reimbursement of funds, etc... when an account is hijacked. Blame the user for using a weak 30-character password?
"for using Facebook".
To send or receive cash, a person must add a Visa or MasterCard debit card issued by a U.S. bank to their Facebook account.
It is easy enough to charge a debit card, but I'm curious how you pay to a debit card. I did not know that was possible. Wouldn't they have to get your bank account info to deposit funds?
Is this a some sort of joke or early April Fools prank? I'd be surprised if there's anyone on God's green Earth that would trust Facebook with a money transfer!
Terrorists and mobsters would use it ;-). They'Re not particular about these thing.
It is easy enough to charge a debit card, but I'm curious how you pay to a debit card. I did not know that was possible. Wouldn't they have to get your bank account info to deposit funds?
They need your transit number of whatever its called. Depositing funds in a bank account is generally not the issue. It it is getting it out of the right one safely thaT's the delicate part :-). Around here, you can easily transfer funds through email (interact) person to person. Who on earth would want to trust Facebook with that.
Can't they send a credit to a debit card like they do a credit card?
The 'routing' number, which is the number on the bottom of a check next to the account number.
The 'routing' number, which is the number on the bottom of a check next to the account number.
In french is called "numéro de transit", so I was talking about the same thing :-). I'm a francophone, so sometimes when it doesn't relate to tech specifically I can't recall the english term since I don't use it often.
As long as you're not a francostein you're good.
The 'routing' number, which is the number on the bottom of a check next to the account number.
Exactly, but that is not what the article says. It mentions you click on the "Add Card" button.
In order to deposit money in someone's account, there are usually fees involved unless it is within the same bank. If between two different banks it is usually called a wire transfer and requires safe pass codes. It would be interesting to know how they are doing this. Not that I trust Facebook, but if it saved transfer fees, I'm sure some people might consider it worth the risk.
The only way I know of is to issue a refund. I have never heard of any way to just send money to any type of card.
Might be a good way to send money to Panama, or any other country. There's people spending money to send money to just about every country in the world. Is Facebook trying to replace Western Union, or Money Gram?
Exactly, but that is not what the article says. It mentions you click on the "Add Card" button.
In order to deposit money in someone's account, there are usually fees involved unless it is within the same bank. If between two different banks it is usually called a wire transfer and requires safe pass codes. It would be interesting to know how they are doing this. Not that I trust Facebook, but if it saved transfer fees, I'm sure some people might consider it worth the risk.
In Canada, Interac e-transfer fees are negligable ($1 for the royal bank)
- Sender enters recipient's, name, transfer amount, email or phone number, along with security Q only recipient would know the answer
- Recipient gets - Notification in email or sms with specific link back to originating bank.
Follow the link, answer the question, you get the funds.
You can send to nearly 100% of Canadian bank accounts that way.
Might be a good way to send money to Panama, or any other country. There's people spending money to send money to just about every country in the world. Is Facebook trying to replace Western Union, or Money Gram?
I'm guessing this will be a better deal for international transfers than local one. Though, they'd need banks in every country to collaborate which is far from a given...
Western Union and Money Gram work because well, you don't need a bank account at the destination to get the money :-).
This is going to be huge.
Your right. It is going to cause a huge amount of new financially motivated Facebook hacking. Huge.
With a $1.50 fee (so I have heard) this is a useless system. I would use Paypal or Bitcoin for sending money for a much lower fee in most cases.