> Something really needs to be done about these "money transmitter" services. They essentially get all the power of a bank and none of the oversight, and de-facto there is very little way to avoid them when transacting on the internet.
I guess it depends what kinds of transactions you are making on the internet... I have never used paypal or anything similar to send money to a stranger. I occasionally use venmo to send small sums to friends, but never an amount I would be sad to lose.
if you want all the guarantees that come from dealing with a regulated financial institution, you should... go to your bank? they should be happy to set up an ach/wire transfer for you.
No, they are saying don't use the wrong tool for the job. We need low-friction services for splitting a dinner check and we also need highly regulated services for paying a freelancer or buying a car.
Sure, but lots of those services already exist, and we continually read stories about people getting screwed by them. GP's point seemed to be "just use a bank", but the entire reason these other services exist is because banks can be hard to work with.
Responding to a comment of "we should try and prevent people from getting screwed" with "people should just be smart like me" doesn't seem very helpful.
> I guess it depends what kinds of transactions you are making on the internet
We're long past the time when that kind of excuse can be used by internet companies. They have taken enough market share now from "traditional" companies to be held to the similar standards. We see the billions they make in profits. Let's now see them use some of those profits to provide the service they boast of in their marketing.
FYI, do not do a wire transfer from a bank. They charge exorbitant fees. Places like your local grocery store will do it for you for less than $1. My local store does it for 25 cents.
I guess it depends what kinds of transactions you are making on the internet... I have never used paypal or anything similar to send money to a stranger. I occasionally use venmo to send small sums to friends, but never an amount I would be sad to lose.
if you want all the guarantees that come from dealing with a regulated financial institution, you should... go to your bank? they should be happy to set up an ach/wire transfer for you.