Why are there laws to place such long holds on checks(10days)? Can’t the receiving bank simply call the bank where the check originates from and velidate it themselves?
In: 5
Imagine having to do that for tens of thousands of transactions a day. Just way too time consuming and not profitable enough to make it worth it. Also it could be considered a breach of privacy if one bank is sharing details of your account with another.
Ultimately the bank is trusting that your funds are there if you wrote a check saying they are. The wire process can take several business days itself, it’s not necessarily about confirming the availability of funds so much as just waiting for the money to transfer.
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