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But so far banks have proven resistant to changing up the system: Two years ago NACHA rejected a proposal to start down the road of converting ACH to same-day settlement.

“It surprised a lot of people — why work against incremental progress?" Shamir Karkal, the head of banking startup Simple, told us BI by phone recently.

According to American Banker reporter Kevin Wack, banks said they were concerned about the cost of implementing the changes, especially at a time when they were being hammered on complying with new post-Lehman rules. Some also said fraud could increase, and that the benefits would only accrue to banks whose users do a lot of online banking.

But Wack says there were signs that the proposal was torpedoed by large banks looking to protect fees from wire transfers.

"I do think it is one of the more significant factors," Beth Robertson, managing director of Roberts Payments LLC, told Wack. "It's not one that everyone is going to readily admit."

Right now banks charge an average $26.40 for you to wire money in the U.S.

Reached by Business Insider, Robertson added that that argument starts to fall apart when one considers that most wire systems process high dollar volume transactions not suited to something like ACH in the first place.

"Eating away at revenue — it's probably not that significant a threat."



Simple's Karkal has said he even reached out to a lawyer to see if any action could be taken against the banks.

"If this isn’t anticompetitive behavior, I don't know what is," he said.

Nor do banks' arguments about the potential for increased fraud hold up. As Wack explain

Last edited Sep 11, 2015 at 7:21 PM by mrozansk, version 2