Transferwise question

[55Jay]

For those of you who've set up a Transferwise account recently, were you prompted to enter your origin bank internet banking credentials? 

 

The whole thing so far has been drip drip drip, from establishing the account 2 weeks ago, filling out my profile and then that was it.  I kept looking for a way to upload my passport.  3 or 4 days went by and I got an email telling me to do that, so I did.  Also entered my Bangkok Bank destination account details as well.  Thought I was set at that point, but waited until today for the new fees to kick in, and hope the FOREX situation improved, which is has, a bit. (USD/Baht).

 

So today I went to do my first transfer (ACH pull from Schwab Bank) and was prompted for my Schwab internet banking login details.  Wasn't expecting that.  Backed up and tried the "other bank not on the list" option, entered acct# and routing#, then a new screen came up asking again for my Schwab login credentials. 

 

Went back to it a few minutes later, logged in, and the first screen to come up asked for my social security number. 

 

All this sound in line with your experiences?

[A1Str8]

https://transferwise.com/help/article/2912059/us-dollar-transfers/why-do-i-need-to-enter-my-us-online-bank-details

https://www.quora.com/Why-does-Transferwise-need-my-bank-login-to-accept-incoming-ACH-transfers

Its common practice. Its all encrypted. Some people still feel uncomfortable. I always smile at that. They give away their whole life to facebook sh*t and google, then they start worrying about an FCA regulated financial entity, that handles transactions in the billions.

[Pib]

All normal with my experiences....and it's talked about on the Transferwise website. 

 

Transferwise uses an API from a fintech company called Plaid that allows you to log onto your funding bank within the Transferwise interface.   This Plaid API is used by many financial institutions around the world....many times its totally transparent to the user depending on the situation.  Anyway, apparently Schwab interfaces with Plaid and since Transferwise does also this is how you must fund your transfer if wanting to use ACH Debit (i.e., pull the funds from your bank acct).   If your bank does not use Plaid then you'll have to use the trial deposits method.

 

It's kinda like using PayPal to pay for an Ebay item in how you log onto PayPal from within the Ebay interface.  Anyway, you will logon your Schwab account thru Transferwise interface(but the logon will look different than what you are use to in a normal Schwab logon), if you have multiple accounts at Schwab you will pick which account to fund the transfer, click a button and basically Transferwise is able to validate you are the owner of bank account since you were able to logon, it validates enough is in the account to fund the transfer, gets an authorization from Schwab, and you are done...you are logged off your bank account and back into the Transferwise normal interface.  You logon credentials are "not" saved/recorded by Transferwise....it's an encrypted process....it'st just another way of getting authorization to pull funds versus the old, slow way of trial deposits.

 

And sometimes it will ask for SSAN validation....just click the SSAN validation...enter you SSAN and somehow Tranferwise checks to make sure that SSAN matches up with you....they probably buck it against credit reporting agency or some govt database they are authorized to access.  It only takes a few seconds for the validation....you don't have to upload anything.  I've done a half dozen or so transfers and I think around two times it has asked for SSAN validation....enter your SSAN....click the next button....a few seconds later it's happy.

 

 

[55Jay]

5 minutes ago, Pib said:

All normal with my experiences....and it talked about on the Transferwise website. 

 

Transferwise uses an API from a fintech company called Plaid that allows you to log onto your funding bank within the Transferwise interface.   This Plaid API is used by many financial institutions around the world....many times its totally transparent to the user depending on the situation.  Anyway, apparently Schwab interfaces with Plaid and since Transferwise does also this is how you must fund your transfer if wanting to use ACH Debit.   If you bank does not use Plaid then you'll have to use the trial deposits method.

 

It's kinda like using PayPal to pay for an Ebay item in how you log onto PayPal from within the Ebay interface.  Anyway, you will logon your Schwab account thru Transferwise interface(but the logon will look different than what you are use to in a normal Schwab logon), if you have multiple accounts at Schwab you will pick which account to fund the transfer, click a button and basically Transferwise is able to validate you are the owner of bank account since you were able to logon, it validates enough is in the account to fund the transfer, gets an authorization from Schwab, and you are done...you are logged off your bank account and back into the Transferwise normal interface.  You logon credentials are "not" saved/recorded by Transferwise....it's an encrypted process....it'st just another way of getting authorization to pull funds versus the old, slow way of trial deposits.

 

And sometimes it will ask for SSAN validation....just click the SSAN validation...enter you SSAN and somehow Tranferwise checks to make sure that SSAN matches up with you....they probably buck it against credit reporting agency or some govt database they are authorized to access.  It only takes a few seconds for the validation....you don't have to upload anything.  I've done a half dozen or so transfers and I think around two times it has asked for SSAN validation....enter your SSAN....click the next button....a few seconds later it's happy.

Thanks, Pib.  Done plenty of bank links, always the trial deposit, so this is my first time out with TW and the login request took me by surprise.  My login accesses checking and 2 brokerages there so I paused....I've never used Paypal, Ebay, etc.  Appreciate you taking the time to explain the encryption beyond what's explained on their site. 

 

I'll go back and push on through.  Warm fuzzy, thanks again.

[55Jay]

[Pib]

You have just lost your non-traditional money transfer virginity...you are now two-timing on your bank. ???? 

 

Keep in mind since the ACH system is being used to get the money to Transferwise and the ACH system is a Monday-Friday system...no workie on Saturday and Sunday, that's why you are being told the money should arrive Monday.  Otherwise you would have probably been told your money is arriving next day.

 

Also, keep in mind your first transfer may take a little longer according to the TW website because maybe some humans take a look at your transfer since you are a newbie (and non-virgin).  

[55Jay]

Just now, Pib said:

You have just lost your non-traditional money transfer virginity...you are now two-timing on your bank. ???? 

 

Keep in mind since the ACH system is being used to get the money to Transferwise and the ACH system is a Monday-Friday system...no workie on Saturday and Sunday, that's why you are being told the money should arrive Monday.  Otherwise you would have probably been told your money is arriving next day.

 

Also, keep in mind your first transfer may take a little longer according to the TW website because maybe some humans take a look at your transfer since you are a newbie (and non-virgin).  

Yup, figured that. 

 

After that screen shot above finished, up came a screen saying the money is on the way (the descending timeline graphic) but at the bottom of the screen two buttons - I need to pay it or I've already paid it.  I thought I was done already?  I hit the "pay it" button and I guess that did another transfer, slightly different rate.  So I cancelled both and did a new one for the $2,000.   I'm sure that'll look completely hosed up.  Wait and see if the progress bar moves ahead on Monday.

[Pib]

11 minutes ago, 55Jay said:

Yup, figured that. 

 

After that screen shot above finished, up came a screen saying the money is on the way (the descending timeline graphic) but at the bottom of the screen two buttons - I need to pay it or I've already paid it.  I thought I was done already?  I hit the "pay it" button and I guess that did another transfer, slightly different rate.  So I cancelled both and did a new one for the $2,000.   I'm sure that'll look completely hosed up.  Wait and see if the progress bar moves ahead on Monday.

Never got those two buttons in my transfers.  Why didn't you just click the "I've Paid It Button" since you had already paid.

[55Jay]

Just now, Pib said:

Never got those two buttons in my transfers.  Why didn't you just click the "I've Paid It Button" since you had already paid.

I wasn't sure.  Same screen came on the 3rd transfer after the "in progress" graphic, but I just shut the tab down, didn't click either one.

 

Anyway, got the 2 cancellation emails and my Activity page shows only 1 live transfer in the pipe.

 

 

 

[Pib]

By the way for USD-THB transfers 8 March is when TW new pricing/fees structure went into affect.  The basic fee of 0.85% +$2 changed to 0.56% + $2.88.  And then in both cases add-on whatever "funding fee" is involved depending on whether you are using ACH Debit (pull from your bank account), Wire, Credit Card, or Debit Card.   Like for example before the ACH Debit fee for a $2000 transfer would have been $3....now it's $3.99. 

 

But when the dust settles with the various fees it's around 20% cheaper than before.   Before a $2000 transfer would have cost around $22; now it's around $18 assuming your are using ACH Debit to fund the transfer. 

[Pib]

2 minutes ago, 55Jay said:

I wasn't sure.  Same screen came on the 3rd transfer after the "in progress" graphic, but I just shut the tab down, didn't click either one.

 

Anyway, got the 2 cancellation emails and my Activity page shows only 1 live transfer in the pipe.

 

 

 

Where it says the money may take 3 days to get to them that because Sat and Sun are dead time for the ACH system.  If you had initiated the transfer on say Thursday the status screen would have probably said it may take 1 day for the money to get to you.

 

On my first transfer attempt after 4 days the money still hadn't arrived...the TW progress just was not progressing...nor did any pull of money hit my bank account.  I chatted with TW as to What's Up with the transfer....it didn't seem to be moving.  They looked at it and couldn't figure it out.  So, we agreed during that chat session to cancel that transfer and do a new one...that new one showed up in 2 or 3 days (I forget which one)....went fine.  The next one showed up in 2 days.  And recent ones have been showing up in 1 day.  After doing a few the transfers speeded up...maybe the first transfer or two TW was laying eyeballs on the transfers which slowed things down a day or two.

 

I think the first transfer that got stuck because something went wrong in the verification (i.e., ID upload and transfer that was done as a combo transaction on that first transfer....done to close in time although that standard procedure when first opening a TW account in they try to continue on to get your verification and send some money in a combo type transaction.   

 

So, based on my experience on my first transfer when the wife opened a TW account a few months after me, right after getting her logon credentials she aborted the process where it wants to continue on to do the verification and also send some money.  Instead, she just then did the verification as a standalone process (upload ID)...got the confirmation of successful verification, but waited a few days to initiate a money transfer....I guess you could say let the verification season a few days.  Her first transfer went without a hitch and later ones also.

[donim]

The experience, mine and also from others is that transfers sent to Bangkok Bang will arrive the next day as 'promissed' and to other banks after two or three days depending on time of transfer and (bank-)holidays.

 

If sent to Bangkok Bank, it should be credited around 3pm / 15.00 the following day.

 

Rgds,

[55Jay]

@Pib  Right, I remember you said that in another thread about fee changes, so that's why I was waiting for today and during that hover time, hoped the FOREX would improve a bit.  Yup, saw the ACH fee on 2k now $3.99, overall fees down as you said.

 

In the flurry of screens during my screw ups tonight, after the Schwab login and SSN verification, there was a note at the top of the timeline page saying they were still verifying my account, might take a bit longer, etc.  I'll keep an eye on it Monday/Tuesday, see if the bubble moves.  Thanks for the reminder. 

[NCC1701A]

2 hours ago, 55Jay said:

and was prompted for my Schwab internet banking login details. 

yeah that was as far as I went with it. They wanted my Wells Fargo login and that was just not something I would allow.

[55Jay]

Just now, NCC1701A said:

yeah that was as far as I went with it. They wanted my Wells Fargo login and that was just not something I would allow.

I hadn't set up a link to TW, like bank to bank link with trial deposits etc., so it did make sense to me that there had to be some kind of verification step, I just hadn't ever seen it like this before. 

 

Actually, that's not true.  Started my taxes 2 days ago on TaxAct, provided login credentials for a brokerage firm to download the 1099 data directly.  Same thing I guess.  Had I thought of that tonight, might not have dithered as much about the Transferwise event. 

 

At any rate, can always just change my password.  Probably should do that more often anyway.

[Pib]

10 hours ago, NCC1701A said:

yeah that was as far as I went with it. They wanted my Wells Fargo login and that was just not something I would allow.

The days of the trial/micro deposit method will probably fade away over the next ten years and Instant Authorization using APIs such as those provide by Plaid (which Transferwise uses along with thousands of US bank/credit unions in various ways).   You are probably using third party APIs right now when logging onto your bank account.  Take a look at below weblink (and other it leads to) along with a partial quote talking instant Authorization which is replacing trial/micro deposits.

 

https://blog.plaid.com/new-auth/

Quote

Now supporting Auth for every bank and credit union in the U.S.

---

Paolo Bernasconi

We’re excited to introduce an upgraded Auth product that enables developers to authenticate accounts from any of the ~11,500 banks or credit unions in the U.S.—in more ways that are fast, simple, and user-friendly.

In 2018, we made big strides in expanding Auth’s coverage to 3,800+ institutions in the U.S., which covers 90% of all depository accounts. As part of our ongoing mission to deliver access to the financial system, we know every new user counts and not all of them bank at the largest institutions. That’s why we developed new ways to help you onboard even more users.

The upgraded Auth product will intelligently guide users to the best method for account authentication based on the financial institution they select. Our hope is that every user will have a successful path to connect their bank account to your app so they can begin enjoying the benefits sooner. Plus, all account verification is handled through Plaid’s login module for a seamless user experience.

 

 

[55Jay]

FWIW, my first TW transfer arrived in my BKK Bank account today at Noon.  As noted by Pib and others, it reflected as an "International Transfer" from abroad. 

 

I was a bit pessimistic given how my sign up/verification process went, and a few others here who relayed their problems getting set up.  That, and then me screwing up my first few transfer attempts last Friday night - I was mentally prepared for some kind of glitch.  But it all worked out in the end, no problems.

 

Their customer contact worked as well.  Sent them a quick note Friday night about my string of identical, cancelled transfers, and they responded fairly quickly and closed the loop.  Nice.