USA Specific Feature Requests

Are employers able to pay by bank transfer if the employee had an account that accepted it? I know literally nothing about the American banking system so apologies if this is a stupid question

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Most larger employers (>50 employees) offer direct deposit, but still many people like getting a check, or do not bother setting up direct deposit. They like the social aspect of going to the bank to deposit their check, or the physical feeling of the pay.

It is not easy for regular people to pay money directly into someone’s account, If I send money online with my bank often it just mails a physical check. Many smaller employers either do not know how, or do not have the facility to pay electronically.

It is worth noting most staff are paid hourly, even “salaried” workers. Employees are ether “exempt” or “non-exempt” from overtime pay. (over 40 hours per week) To be exempt you must meet certain criteria. This means that many staff have variable pay. If they do not use online banking they like to see their pay in physical form. Otherwise they would need to wait for their statement. Physical checks are attached to a pay-stub.

https://www.dol.gov/whd/overtime/general_guidance.htm

It is also worth noting most staff are paid every two weeks, or weekly. This needs to be a consideration when working on the summary tab in the app.

Paper checking is also important for bill pay. Some companies charge fees to pay electronically. For example a utility company could charge $5 if you want to pay by direct debit, but free if you mail in a check.

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That’s really interesting, thank you :raised_hands:

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One thing that Monzo will need to do is absorb ATM fees. ATMs are generally not free, unless they are owned by your bank.

Most banks charge their customers a fee if their customer goes to another bank’s ATM.

Most banks who operate ATMs charge non-customers fees to use their ATMs.

Whilst Monzo could choose to not fine their customers for using other bank’s ATMs, they also need to absorb the fee.

Charle’s Schwab Bank does this worldwide, and Fidelity does this domestically.

Both are technically brokerage accounts, but have no-minimum balance, and the brokerage account does not actually need to be used.

Bill pay is also a must. Direct debit just is not a big thing. So customers need to be able to push the money online. Depending on the merchant relationship with Monzo it will ether be an ACH/EFT, or a physical check posted.

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Thanks for both of your comments

I used US banks during trips in 2006 and 2012 purely as a holiday maker - so withdrawing some cash and paying in shops using a variety of wild and wacky technologies - but none of that exposed to the actual day to day vagaries

Not sure Monzo can ride to the rescue fully, but they certain have some meaty topics to tackle

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+1 to being able to transfer between USD and GBP. I am using HSBC globally-linked accounts for this today, and would love to replace that system with Monzo. :wink:

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