If you have been interested in Peer 2 Peer (P2P) services, then you may be surprised that the set-up time can take up to two weeks. You may be wondering why P2P takes so long. Here, we will explain what P2P is and why you should expect an extended set-up time.
What P2P services in banking?
P2P services or Peer 2 Peer is a banking service that allows you to send money from your bank account to another person with a bank account. Here is an example where P2P comes in handy. Let’s say you are going to dinner and splitting the check. You can pay the entire dining bill yourself and have your friends send you their share of the bill via a P2P transfer. There are a number of other situations where P2P transfers can come in handy. For instance, a parent can easily send money to a child in college using a P2P service.
Why does P2P take up to 2 weeks to set-up?
P2P set-up services can take up to 2 weeks to set up and may involve $.03 pings during the process. The long set-up is due mainly for security reasons. When it comes to moving funds from one person to another, there are a number of security considerations. Therefore, a P2P service wants to make sure that all parties are not involved in money laundering or other illegal activities.
What is NACHA?
NACHA is an acronym for the National Automated Clearing Housing Association. This is the organization that administers the ACH clearing network for moving money into and out of banking accounts from direct consumer, business and government payments. For instance, ACH payments are used for common transactions such as direct deposit and direct payment services. There are currently about 11,000 financial instructions represented by NACHA. When you make a P2P transaction, it will be governed by the rules placed by NACHA.
What are the top P2P services?
If you are looking for the top P2P services, then you have a number of options available. Here’s a look at some of the most popular P2P services now available in many countries:
● Venmo – This is a top P2P payment system for mobile. Venmo is a popular choice for social payments such as splitting a dining bill.
● Zelle – Zelle is partnered with a number of banks and credit unions to allow transfer of money in minutes.
● Google Pay – Google Pay is synchronized with Gmail and allows for the transfer of money in minutes.
● Paypal – Paypal is the most widely used P2P service that has more than 375 million members worldwide.
All of your banking questions answered
If you are looking to learn more about P2P services or banking in general, then check out Find a Better Bank. We help consumers find the best banking services with low or no fees and high yield accounts.