I mean it’s just numbers switching places, why it sometimes take like 2 days? It’s not psyhical paper they are transferring after all.
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Answer: The (possibly outdated] explanation I’ve been told was because these transfers go through an external clearinghouse which collects the transaction information, confirms the account information at both institutions, then processes the transaction and sends the confirmation to both institutions. This was an old process that used to take a while just to process the jobs in batches, but also allows the participants a bit of a window to prevent the transfer from happening (in the event of mistake or fraud). It also established a pretty good paper trail in the event of one or the other institutions raising a concern.
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