topic Re: Do push payments cost money to sending/receiving FI? in Personal Finance

Do push payments cost money to sending/receiving FI?

Ficoproblems247 — Sun, 12 Apr 2020 23:13:35 GMT

When I push a payment from my checking to my daughter's checking, is that costing money to one or both banks? I mean I'm sure there is some sort of transactional cost, but is it frowned upon to push very small amounts? Example: My DD (10) receives a 5 dollar bill from a family member, but wants to put in into her bank account, I deposit the $5 into my local Chase ATM next time I drive by it, then push the $5 from my Chase checking to her Capital One 360 (teen/children checking version) so it's in her account. I mean I could add more and push a larger payment through, but it's just kind of the principal of it being her own money, and putting what she was given into her very own account. Is pushing such a ridiculously low amount in any way a negitive thing to one or both banks? I'm probably way overthinking this, but just curious! Stay safe and well, FICO fam!

Re: Do push payments cost money to sending/receiving FI?

Gmood1 — Sun, 12 Apr 2020 23:55:28 GMT

Yeah, you're over thinking it.

I do this all the time, to some of the banks and CUs I'm a member of that aren't my main FIs.

I push $5, $10, $15 and $25 to several every month.

Some of those I push and then pull back at the end of the month, only to push again at the beginning or middle of the next month.

I do it to mimic activity with those particular FIs whose interest rates on savings or checking isn't worth keeping a lot of money in.

But I want to hold the accounts open for future use.

You're fine.

Re: Do push payments cost money to sending/receiving FI?

Ficoproblems247 — Sun, 12 Apr 2020 23:33:31 GMT

Awesome answer, and much appreciated!

Re: Do push payments cost money to sending/receiving FI?

Anonymous — Mon, 13 Apr 2020 00:06:14 GMT

@Ficoproblems247 wrote:
When I push a payment from my checking to my daughter's checking, is that costing money to one or both banks? I mean I'm sure there is some sort of transactional cost, but is it frowned upon to push very small amounts? Example: My DD (10) receives a 5 dollar bill from a family member, but wants to put in into her bank account, I deposit the $5 into my local Chase ATM next time I drive by it, then push the $5 from my Chase checking to her Capital One 360 (teen/children checking version) so it's in her account. I mean I could add more and push a larger payment through, but it's just kind of the principal of it being her own money, and putting what she was given into her very own account. Is pushing such a ridiculously low amount in any way a negitive thing to one or both banks? I'm probably way overthinking this, but just curious! Stay safe and well, FICO fam!

As already mentioned above, you are fine. There is no negative impact to you or to the bank.

Whenever you "push" payments to your daughter, you do so via the Automated Clearinghouse (ACH)

system. ACH transfers are free; banks set up the ACH to be free so they wouldn't incur any costs

to themselves or to other banks. With that said, some financial institutions will try and fee you to death

and charge you a fee even though ACH transfers are free. Such institutions charge fees because they can,

not because they are losing money or are passing on their costs to you. So if you're curious, reach out

to your bank and/or credit union and verify whether or not their ACH transfers are free to customers.

So don't worry. It's a great question, though. I'm glad you raised the issue.

No doubt others reading this forum were wondering the exact same thing.

Thanks so much for sharing!

Re: Do push payments cost money to sending/receiving FI?

KLEXH25 — Tue, 14 Apr 2020 03:50:01 GMT

If it was costing them money, I'm certain they would be passing the cost onto you or they would set minimums / limits. My understanding is that there are no fees with ACH transactions, so push away! I'm sure your bank will be the first to tell you if they have a problem with it lol.