How to Send Large Payments without Getting Shut Down

If you are active in reselling or manufactured spending along with a community of friends, you might find yourselves sending money to eachother in high volume. What’s the best way to send money between friends?

We all start out paying each other with Paypal, Venmo, Facebook, Google Wallet, Square Cash, any-other-electronic-wallet-out-there. After getting shut down or frozen by one too many electronic wallets, we’ll start looking for alternatives.

P2P Bank Transfer

The first step people typically use after graduating from electronic wallets is P2P bank transfers. Most banks have systems in place to allow transfers between people. The transfer often goes instantly for transfers within the same bank (e.g. sending from your BofA account to someone else’s BofA account), and will take a few days when sending outside the bank.

This option might be found under the Transfers tab or under the Bill Pay tab (‘Pay People’). There might be other possibilities as well. Poke around and you’ll find most banks have some system, and it’s typically free on personal accounts.

You’ll usually have to do an initial ‘account linking’ with some sort of verification, and subsequent transfers go quicker. If you’re making a one-off payment to a friend, it might not be worth the hassle, depending on whether your bank requires linking accounts or not.

In some cases, banks process the payments as part of a network of banks. Notably, Chase’s QuickPay system and Capital One’s P2P payment system use the same ClearXchange platform.

These P2P payments often have weekly or monthly limits. One bank might have a $2,000 monthly limit, another might have a $1,000 weekly limit, etc. Aside from the official limits, some banks might look askance at continuous transfers in high volume, and you might be forced to move onto other options.

Checks

One underestimated method for paying friends is the good old paper check. While this might sound primitive, banks traditionally don’t ask questions about paper check deposits, regardless of volume and amounts. Apparently, large electronic transfers are more susceptible to fraud and are thus flagged whereas checks are not.

Consider mailing a paper check to your friend. It might even be possible to send a check electronically somehow.

A similar option is to use the check payment option in your online banking found with Bill Pay. Many banks will allow you to pay any bill, even those not in their system, and they send it out via physically mailed check. Saves you the postage and the hassle of dealing with physical paper, but of course the recipient still needs to agree to take a physical check.

Money Order

This is an extension of the check idea, but is quite apropos to the hobby. Consider mailing a money order (perhaps purchased with a prepaid Visa or Mastercard) to pay friends. These can be deposited by anyone like an ordinary check, and some banks might even allow it to be deposited via mobile deposit.

People often shy away from depositing it in their own accounts since it looks a bit suspicious that someone is buying themselves money orders, but when deposited by someone else it’s more innocuous, and is actually the intended purpose of money orders.

Business Bank Transfer

Another option is to open a business checking account.

Most business bank accounts will have some sort of ACH payment system available, and these are specifically designed for sending large sums of money on a consistent basis for payroll or vendor payments.

While personal banks usually allow free ACH payments, business bank accounts commonly have fees for each ACH payment, or even for each transaction made in the account (deposit, withdrawal, etc.). Before opening a business bank account, research the fee structure well and, particularly, ask about ACH payments if you plan on using that feature.

One caveat here is that banks treat business bank accounts quite seriously. Though it’s generally easy to open a business credit card for an eBay business using your SSN, a business checking account will usually need an EIN at the least (which, incidentally, can be gotten quickly and freely online), and sometimes a trade certificate from your city or county. Also note, business bank accounts are typically opened up in-branch, and they might ask a lot of questions about your business during the opening process.

Bill Pay Service

There are numerous businesses who specialize in sending out payments. Some might only allow payments to vendors found in their system (like the now-defunct EvolveMoney) while others might specialize in vendor payments for businesses. Do some research and you’ll find many such services.

Another example is Plastiq who charges 2.5% to send payments to a business. You will have to prove to them that the payment is for goods or services, and not just sending money to a friend.

More Options

Do you pay your friends in $500 Visa gift cards? Have any other good methods for sending large sums of money to friends and acquaintances? Let us know in the comments below.

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Gadget
Gadget

DP: Suntrust’s fraud dept decided to flag a $1500 outgoing check of mine after they already paid it, then reversed it. Although they did not give a definitive answer as to why, it was likely because it was the first check ever written on the account. (Account was 3 months old, so outside the 30 day new account rules) Seeing now if I can get the return check fee at the depositor’s bank reversed and doing damage control. PITA!

gary
gary

you suggest buying a mo with a visa gift card? where can you do that? I’ve heard walmart but its very YMMV

Superchurn
Superchurn

kroger, walmart, post office

José
José

How good/bad is cash? My bank seems suspicious of me when I try and deposit any amount of cash.

DK
DK

I deposited 9k in PNC once, just moving from one savings account to another. I don’t know why I said it, but the lady said how do you want to withdraw and I just said cash. So anyway about a month later I got to have a real fun 30 minute conversation with some kind of internal investigator. Ultimately to avoid reporting it to the feds I had to show where I had withdrawn it. And here I thought this was America,

Superchurn
Superchurn

Don’t forget about bitcoin…coupled with coinbase, its another very viable option

DK
DK

Why would you use an exchange to send someone BTC? Just send out of your hard wallet.
Don’t have a hard wallet? Get one today and move all of your assets off of the exchange. Also when purchasing BTC in the future please consider using Bitsquare, a decentralized trading platform.

Superchurn
Superchurn

because you need a way to get dollars into BTC. coinbase doesn’t that exceptionally well, although i’m sure other options exist.

DK
DK

You really should look at Bitsquare, where you can buy BTC without using an intermediary, and most importantly without providing your identity to an intermediary. Coinbase is exceedingly convenient, but you give up quite a few things in exchange for that convenience. Highly recommend bitsquare for p2p transactions, no intermediary. Also remember that any BTC held in Coinbase is not actually yours until it is withdrawn to a wallet that only you control.

Wash
Wash

Instead of money transfers, checks, etc… When sending/receiving money from friends, I usually request sending Amazon GCs. No fees for either party. Its the same as cash for most people.

Wash
Wash

A bonus of this method is that the person sending can earn points on their credit card of choice!

Roy
Roy

How does this work? the recipient has an Amazon GC, but how does that go back to cash, if they are not in need of any significant Amazon purchases? understand if you don’t want to give arrows publicly, but link would also be nice lol.

Wash
Wash

Sorry, I should clarify… You wouldn’t be able to convert it back to cash… But as many people shop at Amazon, it can be treated as good as cash for those individuals.

Charles
Charles

Great post. Would it be possible to Venmo yourself if you created two separate accounts? As much as it’s convenient to meet MS by venmo to my brother, I’d rather just cut him out of the equation as I’ve got quite a lot to MS to do. Thanks!

Anon
Anon

I actually have done this for MS. I’ve probably done like 3k+ but obviously not all at once. Just gotta be careful with it.

Anon
Anon

It is certainly possible, but can get all accounts involved banned, and the funds may be held for up to 180 days, as it violates the user agreement.

Restricted Activities: Create or control more than one personal account for yourself without our express authorization, through, among other methods, using a name that is not yours, using a temporary email address or phone number, or providing any other falsified personal information;

Use your Venmo account or the Venmo services in a manner that we, Visa, Mastercard, American Express, Discover or any other electronic funds transfer network reasonably believes to be an abuse of the card system or a violation of card association or network rules, or for the purpose of earning rewards, perks, miles, points, etc. with your credit card, debit card, or bank account;

Provide yourself a cash advance from your credit card (or help others to do so);

Actions We May Take if You Engage in Any Restricted Activities: Terminate this user agreement, limit your Venmo and/or PayPal account, and/or close or suspend your Venmo and/or PayPal account, including cancelling your Venmo Mastercard (if any), immediately and without penalty to us;
Refuse to provide the Venmo or PayPal services to you in the future;
Limit your access to our websites, software, systems (including any networks and servers used to provide any of the Venmo or PayPal services) operated by us or on our behalf, your Venmo or PayPal account or any of the Venmo or PayPal services, including limiting your ability to pay or send money with any of the payment methods linked to your Venmo or PayPal account, restricting your ability to send money or make bank transfers;
Hold money in your Venmo account for up to 180 days if reasonably needed to protect against the risk of liability or if you have violated our Acceptable Use Policy;

Michael
Michael

Can’t second the paper check option enough.

Funny to even consider this in the computer age, but it’s saved my bacon quite a few times. For the life of me all these e-transfer options take forever to setup and then when that’s done, they usually don’t work for a myriad of reasons. I’m constantly befuddled by BofA’s payment schemes and depositing a 3rd party bank’s check via remote deposit saved me from overdrawing my accounts (a few times).

Also taking a crisp images of a physical check and writing for deposit only on the back has let me receive large payments from other ppl online. I can then just use my phone to remote deposit these like the check was in my hands. Very handy too.

I think paper checks really have it going for them until e-transfers are as easy as venmo or just handing over hard cash!

howard
howard

will plastiq ALWAYS request proof that a payment sent to an individual is for goods and services? I want to send my friend a small payment just to get the referral bonus, but not sure if it will get through. Thanks!

Randy
Randy

I had my son send me $100 when he opened his account. I listed it as rent. Subsequently they put a hold on it and asked for A copy of the lease agreement. Via email We Stated that it was an informal agreement. They accepted that and processed the check.

howard
howard

Thank you for sharing! That’s really helpful.

DrRyan
DrRyan

They requested from me for a $25 payment.

Audrey
Audrey

I opened a chase biz checking account using SSN. I do actually have a sole proprietor business, but I didn’t have to provide tax returns or anything.

Filippo
Filippo

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