Banking question.

When you link those two accounts together, you’re authorizing both financial entities to communicate with each other.

I have my Charles Schwab account linked to my bank and the process is identical. There is nothing to worry or stress about, it’s safe, assuming you deal with reputable companies.
 
RyanB said:
When you link those two accounts together, you’re authorizing both financial entities to communicate with each other.

I have my Charles Schwab account linked to my bank and the process is identical. There is nothing to worry or stress about, it’s safe, assuming you deal with reputable companies.
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When you set up the link, how does each financial institution know that the same person owns both accounts?
 
Salty said:
you said you gave them authorization
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Am I speaking in tongues or something? I know I gave them permission. I stated that several times.

My point though (again) was that I didn't know they could withdraw from my account with just the routing number and account number, regardless of permission.
I thought they would need some sort of password or other authentication to withdraw funds from someone else's account. Or even their own account for that matter. I can't withdraw funds from my account without proving who I am.
 
Palmpilot said:
When you set up the link, how does each financial institution know that the same person owns both accounts?
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All they know is whether or not the correct credentials were entered on the form. If they match the institution’s records, they would have no way of knowing unless the the account gets reported as being compromised.
 
JOhnH said:
Am I speaking in tongues or something? I know I gave them permission. I stated that several times.

My point though (again) was that I didn't know they could withdraw from my account with just the routing number and account number, regardless of permission.
I thought they would need some sort of password or other authentication to withdraw funds from someone else's account. Or even their own account for that matter. I can't withdraw funds from my account without proving who I am.
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What sort of password or other authentication do you imagine? Where would they get it? From you?

I believe there is a difference between some joe off the street attempting to use the routing number and your account number and, say, an organization/company (e.g., the IRS comes to mind) that has an established relationship with the ACH place.
 
To give you an example, it is possible to pay property taxes in my county by just knowing the address of the APN being taxed, and having payment info by ACH in the form of the routing and account number, and account holder name and address. That's it. Someone could pay their own taxes using stolen info from someone else, easy-peasy. Now, if (when) you get caught, you'll be on the hook for lots of property tax penalties in addition to wire fraud, but all the same, it is very easy to do. Doing it and getting away with it are two very different things though, since there is a fair amount of verification done when you set up a bank account these days. Even online-only accounts often use facial recognition against an ID photo to determine if the person registering the account is who they say they are.
 
Bob Noel said:
What sort of password or other authentication do you imagine? Where would they get it? From you?
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Yes. I would think they would at least need my username and password, which I would either have to give them, or they might buy off the dark web. Either that, or I should have to give my brokerage written authorization to allow the bank to make withdrawals from my account.

Bob Noel said:
I believe there is a difference between some joe off the street attempting to use the routing number and your account number and, say, an organization/company (e.g., the IRS comes to mind) that has an established relationship with the ACH place.
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I don't think even the IRS can randomly withdraw from my account without a court order. (But I admit I might be wrong about that).
 
JOhnH said:
Am I speaking in tongues or something? I know I gave them permission. I stated that several times.

My point though (again) was that I didn't know they could withdraw from my account with just the routing number and account number, regardless of permission.
I thought they would need some sort of password or other authentication to withdraw funds from someone else's account. Or even their own account for that matter. I can't withdraw funds from my account without proving who I am.
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Is this a problem for you? Since the entire financial system operates in very similar ways, the alternative is to keep all your cash (or gold) in your mattress and tote it to the recipient when needed.

Cheers
 
X3 Skier said:
Is this a problem for you? Since the entire financial system operates in very similar ways, the alternative is to keep all your cash (or gold) in your mattress and tote it to the recipient when needed.

Cheers
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Ok, for the last time, the ONLY problem is that I DIDN'T KNOW THEY COULD DO THIS!

Now I know. It still surprises me, but now I know.

Perhaps I am stupid or naive, but I didn't know they could take money out of my account without ME giving my credentials, or unless I give my financial institution permission to allow it.

I'm about to find out if I can ignore my own thread.
 
Post a question laced with an assumption

Be disabused of that assumption

Be angry about the continued flow of information on the subject
 
schmookeeg said:
Post a question laced with an assumption

Be disabused of that assumption

Be angry about the continued flow of information on the subject
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I can see how you might think that.
But my perspective is that people keep reading things into what I said that I didn't' say. Or repeating assumptions that I have already disavowed.
 
The amounts are the "password". You tell them the amounts as authentication.
 
JOhnH said:
Ok, for the last time, the ONLY problem is that I DIDN'T KNOW THEY COULD DO THIS!

Now I know. It still surprises me, but now I know.

Perhaps I am stupid or naive, but I didn't know they could take money out of my account without ME giving my credentials, or unless I give my financial institution permission to allow it.

I'm about to find out if I can ignore my own thread.
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I think your questions have been answered.

(To recap, there’s nothing but law to prevent a business or crook from debiting your bank account without your authorization. Just law. Once someone has decided to break the law by debiting your bank account without your authorization, they only need your routing number and account number, and the banking capacity to initiate an ACH transaction.)

Online forums have noise, along with the answers. Get over the noise, don’t take it personally. Thinking that you own the thread (“my own thread”) only makes you more susceptible to getting upset about the noise.
 
NoHeat said:
Online forums have noise, along with the answers. Get over the noise, don’t take it personally. Thinking that you own the thread (“my own thread”) only makes you more susceptible to getting upset about the noise.
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:yeahthat:
 
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