why do banks need an extra day to process paychecks after ‘bank holidays’ when almost everything is automatic/digital?
In: 3758
Each bank collects their own credits and debits in a batch, but they (generally) all trade that info with all the other banks at the end of the business day. This is one of the reasons the banks follow “bank holidays” all the same for processing – the offices and branches might be open or closed for regional/state/local events but the Fed is closed so they can’t all swap their transactions and money at the end of a holiday.
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