So it was late evening, I tried moving some money to a Revolut acc from a local bank (I use the former one for all app/web payments), however, I noticed that it took almost a day when I initially tried to move money from one acc to another using regular bank transfer (both belong to me) but when I chose to transfer using the card, I got money instantly.
As far as I understand, unless you are moving huge amounts of money at once, everything is done automatically, plus, in both cases, you have to prove your identity using the app and go through all security stuff. So why is there a difference in speed, if you move your money using different means?
In: Technology
Account-to-account transfers usually run on the ACH network. This is slow because each transaction is bundled together with a bunch of others and sent out the next business day for a human to review for typos, fraud, etc. This makes the transaction costs really low but also makes it slow.
Debit cards run on a separate network that handles transactions individually and instantly. This makes it much more expensive, but it’s still only like 10-20 cents per transaction, so sometimes stores and service providers (like Revolut) will just eat that cost to make their customers happy.
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