Why does a bank payment takes a long time to be received, especially if there is a weekend in the middle?
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Why does a debit transaction come out of my account immediately but when I return something it takes days to a week for the money to show back up?
Say what you want but it’s because of money. They want you to miss that payment. If the bank needs that money it’s instant. If you want that money it’s gonna take 3 -5 business days. If you miss that payment they get 20 to 30 dollars as an “overcharge”.
Part of it is the US banking system. Some banks are local ones with only one or two branches. The US has over 4800 different banks.
Canada has 6 major banks and 80 including subsidiaries.
The clearing house has to get a notification from each bank to start the transfer, sort them all out and then notify each recipient of the transfer. Then your bank has to prices that to credit each individual account
It takes longer to do 10,000 notifications in the US than 160 in Canada.
Depending on the type of transaction, the fed reserve is a middle man as well so nothing can process when they are closed (Weekends and Fed holiday)
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