ING Direct

Transfers money from your bank account to anyone else’s with ING Direct Person2Person. As you would expect from ING Direct, it's a free service. You can send money to a person who has a savings or checking account from another US-located bank. Person2Person sends the recipient a link to a secure page on ING Direct. They’ll then need to enter their bank information. One major issue you may have with ING Direct's service is that the sender must have the bank account number of the recipient. The account number, routing number, name and email address must be entered into ING Direct's service by the sender.

  Summary of ING Direct's Person2Person Payment service: 

• No fees to receive or send 
• Requires recipient's bank account number 
• Payment is limited to $5,000.00 per transaction per day 
• Payment to an account outside of ING Direct takes up to 2 bank business days to post after the recipient confirms his/her account information 
• After 45 days, payment will expire.

Update 5/11/2011: ING Direct added a new feature to make it easier for checking account customers with iPhones to pay each other. According to its press release, "Bump Person2Person Payment technology that allows Electric Orange Checking account Customers with iPhones to instantly and securely send money to one another."