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Which credit card company? The fastest possible resolution for your fact pattern would have been "money withdrawn on Friday" unless one or both of your banks d

by patio11 11y ago

Which credit card company? The fastest possible resolution for your fact pattern would have been "money withdrawn on Friday" unless one or both of your banks decided to covertly extend you credit. This is because ACH pulls are an overnight batch process in the US. Given that it took a few days, it's possible that your credit card company is using an intermediary to process ACH payments (there could be a variety of reasons for this) and, as a cost-savings measure, either the CC told the intermediary "We'll take your cheaper 3 business days option in preference to next day" or the intermediary told your bank "We'll take your cheaper 3 business days option in preference to next day." The cynic in you should probably not worry overmuch about why a bank is willing to grant you free float. It's pretty pedestrian: back office optimizations, yay.

pc86 11y ago
Chase card, M&T Bank. I did know that ACH stuff is a daily batch, but I hadn't thought about an intermediary between the card and bank, that's a good point. And even without it, I would imagine that even an entity the size of Chase probably gets a discount on 3-day v. next-day.
- Spooky23 11y ago
  I think Chase has problems in this area. AMEX seems to clear payments overnight for me. Chase will take days.
p4wnc6 11y ago
> The fastest possible resolution for your fact pattern would have been "money withdrawn on Friday" unless one or both of your banks decided to covertly extend you credit. This is because ACH pulls are an overnight batch process in the US. I don't think this is true. There is the NACHA same-day ACH initiative [0] which is opt-in and at least some institutions have already opted-in. I've experienced frequent same-day resolution of ACH transactions when using bank services from two very large US banks (one based on the west coast, one based in the east coast) and also a small employer credit union. It's true that my experience is not common and it often does take longer than a day. Many banks still do use overnight ACH. But I don't agree with the statement that overnight is "the fastest possible resolution" -- some banks have opted-in to doing faster and have already begun doing so. [0] https://www.nacha.org/content/same-day-ach https://www.nacha.org/content/same-day-ach

by patio11 11y ago

pc86 11y ago

Chase card, M&T Bank. I did know that ACH stuff is a daily batch, but I hadn't thought about an intermediary between the card and bank, that's a good point. And even without it, I would imagine that even an entity the size of Chase probably gets a discount on 3-day v. next-day.

Spooky23 11y ago
I think Chase has problems in this area. AMEX seems to clear payments overnight for me. Chase will take days.

p4wnc6 11y ago

> The fastest possible resolution for your fact pattern would have been "money withdrawn on Friday" unless one or both of your banks decided to covertly extend you credit. This is because ACH pulls are an overnight batch process in the US. I don't think this is true. There is the NACHA same-day ACH initiative [0] which is opt-in and at least some institutions have already opted-in. I've experienced frequent same-day resolution of ACH transactions when using bank services from two very large US banks (one based on the west coast, one based in the east coast) and also a small employer credit union. It's true that my experience is not common and it often does take longer than a day. Many banks still do use overnight ACH. But I don't agree with the statement that overnight is "the fastest possible resolution" -- some banks have opted-in to doing faster and have already begun doing so. [0] https://www.nacha.org/content/same-day-ach https://www.nacha.org/content/same-day-ach