At least where I live, if I make a transfer between my accounts (with different banks) too late on a Friday, the money won’t be available until Monday. But there are no humans involved in this process – it seems to me that could be instantaneous as far as the technology is concerned. What am I missing?
In: 1897
this is one of those times when someone from the states is like ” hey why do we all do this thing this way? ” and the world goes ” ummm ya that’s just you ” haha
Canada: we can send a e-transfer to anyone anytime, I think different banks put different limits on amount. I can send 3,000 a day or 10,000 a week, I am a small time contractor and its just so easy to get paid that I usually get the notification of deposit before I pull out of their drive way.
do US banks not have phone apps? even small time credit unions have them and I do all my banking on my phone for the most part, haven’t been inside a bank in probably 5-7 years
The technical term is “making money on the float.” When you, for instance, pay off your credit card by transferring money from checking, the money leaves your checking account immediately for the bank to hold, but the credit card does not update until the next business day.
The reason for this is that the float, that money the bank holds, the bank is able to make interest on. For this reason, Banks have no financial motivation to speed up this process despite it being technically possible.
The technical term is “making money on the float.” When you, for instance, pay off your credit card by transferring money from checking, the money leaves your checking account immediately for the bank to hold, but the credit card does not update until the next business day.
The reason for this is that the float, that money the bank holds, the bank is able to make interest on. For this reason, Banks have no financial motivation to speed up this process despite it being technically possible.
UK and never heard of this. I can send or receive money any time of day or night and it’ll take a few seconds to clear. I think the longest was 15 mins at like 2am.
UK and never heard of this. I can send or receive money any time of day or night and it’ll take a few seconds to clear. I think the longest was 15 mins at like 2am.
In the US, interbank transfers take place largely through the federal reserve’s automatic clearing house system. This system is only open at those times.
Why? Well the US both had a ton of legacy systems that are essential to the continued functioning of the financial system, and has a weirdly late number of small financial institutions. This system had largely stuck around to limit overhead for smaller FIs having to keep their back offices open 24/7.
Despite this, plans have been in progress for years to overhaul the system, because it IS stupid and antiquated, and larger FIs don’t like getting blamed for it. Last I heard, roll out was supposedly in 2023, but I’m sure it’s been pushed back at least once since then.
In the US, interbank transfers take place largely through the federal reserve’s automatic clearing house system. This system is only open at those times.
Why? Well the US both had a ton of legacy systems that are essential to the continued functioning of the financial system, and has a weirdly late number of small financial institutions. This system had largely stuck around to limit overhead for smaller FIs having to keep their back offices open 24/7.
Despite this, plans have been in progress for years to overhaul the system, because it IS stupid and antiquated, and larger FIs don’t like getting blamed for it. Last I heard, roll out was supposedly in 2023, but I’m sure it’s been pushed back at least once since then.
In the US, interbank transfers take place largely through the federal reserve’s automatic clearing house system. This system is only open at those times.
Why? Well the US both had a ton of legacy systems that are essential to the continued functioning of the financial system, and has a weirdly late number of small financial institutions. This system had largely stuck around to limit overhead for smaller FIs having to keep their back offices open 24/7.
Despite this, plans have been in progress for years to overhaul the system, because it IS stupid and antiquated, and larger FIs don’t like getting blamed for it. Last I heard, roll out was supposedly in 2023, but I’m sure it’s been pushed back at least once since then.
Me an Indian who is proud of my country in this aspect. We have UPI which is instant free and works 24×7
Me an Indian who is proud of my country in this aspect. We have UPI which is instant free and works 24×7
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