Why do Financial Transactions post at midnight?

Question

I’ve noticed that transaction from banks, credit cards etc always post at midnight. Why midnight and what’s the whole process from when the transaction gets made?

In: 5

Answer 1

Companies “batch” their transactions overnight. Most do it at that time because it’s a timed process and doesn’t interfere with daytime sales. There will be a hold on your account when you make the transaction but it processes at about midnight-ish