Walmart Inc. customers will soon give you the option to pay for online purchases directly from their bank accounts using quick bank transfers. The expanded feature is a flashpoint in escalating tensions between retailers and the cardboard networks that set payment processing fees.

The world's largest retailer began offering wire transfer payments through Walmart Pay earlier this yr. Until now, transactions resembled digital checks and took about three days to clear through The Automated Clearing House, the identical network often used for bill payments or payroll deposits. Soon, customers who decide to pay by wire transfer will see the acquisition reflected of their checking account balance immediately – and Walmart will receive the cash immediately.

The consumer advantage of quick bank payment over debit cards is that there aren’t any ongoing pending transactions. According to Jamie Henry, vice chairman of recent payment methods at Walmart, pending transactions can put customers with low balances vulnerable to overdraft or non-funding fees from their bank.

“When the transaction is processed as a real-time payment, customers can see immediately that the payment has been received. I see that it has hit my account and can plan my budget accordingly,” Henry said. “It's not like I have this phantom payment that's not due for a few days.”

In the U.S., most consumers have credit or debit cards, which supply convenience, fraud protection and, within the case of credit products, rewards programs. However, frustration has grown amongst merchants over the fees they pay to banks and networks like Visa and Mastercard for card processing. At the identical time, consumers are upset because some merchants pass these fees on to them in the shape of surcharges. As frustration over card fees grows and more banks use real-time systems, alternative payment methods like pay-by-bank have a probability to realize ground.

“It surprised me,” Henry said of Walmart's launch of its first version of the “by bank” payment method, which is accessible online but has not yet been marketed to customers. “It has definitely exceeded our expectations in terms of the number of customers who have signed up and are actually using this payment method.”

“As an industry, we believe we need to create that connectivity,” said Matt Wilcox, head of digital payments at Fiserv. “FedNow and RTP don't necessarily talk to each other. The NOW Network can play that role in the industry by bringing all of those networks together to enable applications like paying by bank.”

The quick bank transfer payment product shall be available for online checkout on Walmart.com. The Bentonville, Arkansas-based retailer already has its customers arrange a profile after they shop online. If they select so as to add bank transfer payment as a payment option of their profile, they enter their bank credentials to attach their account. Fiserv's AllData platform connects with its banking customers and suppliers, including Plaid, MX, Akoya and Finicity, to link and authenticate consumer accounts.

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Originally published: September 20, 2024 at 11:28 am

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Associated Press

LOS ANGELES (AP) — The University of Southern California further modified its commencement plans Friday, announcing the cancellation of a keynote address by filmmaker Jon M. Chu, just days after it made the controversial decision to ban the valedictorian from speaking.

The private university in Los Angeles said Monday that it had canceled valedictorian Asna Tabassum's speech on the May 10 ceremony for security reasons. Tabassum, a Muslim, has voiced her support for Palestinians in the continuing Israel-Hamas war, and university officials said the response to her election as valedictorian has “taken on an alarming tone.” They didn’t mention any specific threats.

The university's decision was praised by pro-Israel organizations but condemned by free speech groups and the Council on American-Islamic Relations. Students and college marched across campus Thursday in silent protest against the university's decision.

Now university officials say they’re “redesigning” the complete freshman program.

“Given the highly publicized circumstances surrounding our main stage commencement program, university leadership has determined that it is best to excuse our external speakers and honorees from participating in this year’s ceremony,” it said in an announcement Friday published, unsigned statement from the university. “We have spoken with this exceptional group and hope to award these honorary degrees at a future commencement or other academic ceremony.”

Chu was scheduled to present the keynote address on the May 10 ceremony. He graduated from the university in 2003 and has since directed movies corresponding to “Crazy Rich Asians” and “Wicked,” an adaptation of the Broadway musical scheduled to hit theaters last yr.

More than 65,000 individuals are expected on campus at first, including 19,000 graduates.

“Although this should be a time of celebration for my family, friends, professors and classmates, anti-Muslim and anti-Palestinian voices have subjected me to a campaign of racist hatred because of my uncompromising belief in human rights for all,” Tabassum said in an announcement earlier this week.