| reply to cidknee0
Re: happens all the time- 100's of times a day While the systems may be capable of that, the bank tools don't always work that way. Brokerage, bank, etc wire transfers do take days to fulfill even if they take milliseconds to actually execute. |
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 danclan
join:2005-11-01
Midlothian, VA | said by Sofa King:While the systems may be capable of that, the bank tools don't always work that way. Brokerage, bank, etc wire transfers do take days to fulfill even if they take milliseconds to actually execute.
With a few exceptions the only time today it takes days is when a paper check still has to be cut for 3rd party to deposit which is what many times a bank has to do when you use your e-bill pay systems to pay your dentist or relative who doesn't have the ability to accept electronic payments.
In this case if was righting Comcast checks, then Comcast would have issue him a check since they have not been authorized to receive of send funds to his checking account. That would 3-5 days to cut and send the check to him for him to then deposit. |
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| I still see it happening in all forms of e-commerce. The transaction happens right away, but the funds take time to be usable.
The credit card credit/refund error stays as a hold on your account for 24-48 hours. The wire transfer is available from the receiving bank for 24 hours. The brokerage account transfer takes 24-48 hours. In each of these cases the money appears to disappear from one and reappear in the other, not in seconds, but in days. It's never "lost", but it is not usable during this limbo time. |
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mworks
join:2006-06-13
Faison, NC | It isn't about the speed that the system can handle the transaction, it is about the greed typical of banking.
If I owe you $100 and I can manage to hold that money for a few extra days I can gain interest off loaning it out or investing it, even if it is just a few days. I might only make 3 cents but do it enough and it adds up.
A good example of this is social security. Banks get the funds around the 28th of the month but do not post it to accounts till the 3rd of the next month. They wait until they have no other choice but to post it due to federal laws, until then they have 3-5 days to use that money and gain interest. |
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| The banks may receive the funds from an ACH for Social Security earlier than the 3rd of the month but the ACH arrives with a date that it is to be credited to the account. If they post it early, they are not following the rules of a dated ACH.
In this case, it is Social Security sending the money early, they could easily do it on the 3rd of the month but with the volume of transactions they have to process they typically do it over the course of a couple days. |
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danclan
join:2005-11-01
Midlothian, VA | Its called float the bank, either receiving or sending is using the funds to earn overnight interest before paying out. This is pretty common but the funds have been transferred within hours and same day at the very least. |
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elray
join:2000-12-16
Santa Monica, CA | Float hasn't existed for many years.
Years ago, the overnight rate was 7%, today its 0.16% - $100 on deposit yields 16 cents a year - you'd need $2200 to earn a penny overnight - no, the aggregate doesn't amount to much of anything. |
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danclan
join:2005-11-01
Midlothian, VA | said by elray:Float hasn't existed for many years.
Years ago, the overnight rate was 7%, today its 0.16% - $100 on deposit yields 16 cents a year - you'd need $2200 to earn a penny overnight - no, the aggregate doesn't amount to much of anything.
Float still exists and is used by banks every day. It has not gone away. It's decreased for the consumer due to instant transfer of funds but not for the banks. Overnight loans are still used and will be used for decades to come. |
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