Why do apps/banks like Cashapp, Venmo, and Apple Pay charge a fee for instant transfers?

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Is it something that takes more labor or tech and therefore they charge? How is transferring from a bank in one to three days different from transferring right away, if they’re similar by method?

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6 Answers

Anonymous 0 Comments

Because an instant transfer is technically them loaning you money until the actual transfer goes through the multiple day clearing process on the backend.

It is a high interest, short-term loan. Very similar to a payday loan.

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