Facebook Messenger gains app-based person-to-person money transfers

Posted:
in iPhone edited March 2015
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.

Comments

  • Reply 1 of 19
    mobiusmobius Posts: 378member
    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!
  • Reply 2 of 19
    jbdragonjbdragon Posts: 2,246member
    Something else I'm sure to NEVER use!!! I have just some Basic Info on Facebook to help people get in contact of me. Friends for 20 years ago. For that's it's fine, but I'm rarely ever on Facebook. I'm sure not going to Voluntary hand over everything about me to Facebook or anyone else for that matter. I'm sure not going to have anything to do with Money from them.
  • Reply 3 of 19
    sflocalsflocal Posts: 5,741member

    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?

  • Reply 4 of 19
    dasanman69dasanman69 Posts: 13,001member
    The sad part is that millions of nitwits will sign up for this.
  • Reply 5 of 19
    lightknightlightknight Posts: 2,312member
    Quote:

    Originally Posted by sflocal View Post



    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".

  • Reply 6 of 19
    This is going to be huge.
  • Reply 7 of 19
    mstonemstone Posts: 11,510member
    Quote:
    Originally Posted by AppleInsider View Post

    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?

  • Reply 8 of 19
    foggyhillfoggyhill Posts: 4,767member
    Quote:

    Originally Posted by Mobius View Post



    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.

  • Reply 9 of 19
    foggyhillfoggyhill Posts: 4,767member
    Quote:

    Originally Posted by mstone View Post

     

     

    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.

  • Reply 10 of 19
    dasanman69dasanman69 Posts: 13,001member
    mstone wrote: »
    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?

    Can't they send a credit to a debit card like they do a credit card?
  • Reply 11 of 19
    dasanman69dasanman69 Posts: 13,001member
    foggyhill wrote: »
    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.

    The 'routing' number, which is the number on the bottom of a check next to the account number.
  • Reply 12 of 19
    foggyhillfoggyhill Posts: 4,767member
    Quote:

    Originally Posted by dasanman69 View Post





    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.

  • Reply 13 of 19
    dasanman69dasanman69 Posts: 13,001member
    foggyhill wrote: »
    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. :lol:
  • Reply 14 of 19
    mstonemstone Posts: 11,510member
    Quote:
    Originally Posted by dasanman69 View Post



    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.

  • Reply 15 of 19
    mstonemstone Posts: 11,510member
    Quote:
    Originally Posted by dasanman69 View Post

     
    Can't they send a credit to a debit card like they do a credit card?


    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.

  • Reply 16 of 19
    dasanman69dasanman69 Posts: 13,001member
    mstone wrote: »
    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.

    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?
  • Reply 17 of 19
    foggyhillfoggyhill Posts: 4,767member
    Quote:

    Originally Posted by mstone View Post

     

    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.

  • Reply 18 of 19
    foggyhillfoggyhill Posts: 4,767member
    Quote:

    Originally Posted by dasanman69 View Post





    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 :-).

  • Reply 19 of 19
    beltsbearbeltsbear Posts: 314member
    Quote:

    Originally Posted by AppleinsiderFrm View Post



    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. 

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