4 ms·
> because the original protocol was file and FTP based As if that's not largely how it still works today? :sad-face:
by nrmitchi 4y ago
> because the original protocol was file and FTP based
As if that's not largely how it still works today? :sad-face:
- kylehotchkiss 4y agoNow the 3 days is beneficial to banks since whichever bank is holding the funds can claim the interest due on it.
- nrmitchi 4y agoBy that logic it works the other way too. They miss out on interest on funds that were delayed in being sent to them.
- notch656a 4y agoPrisoner's dilemma. slow-slow is the stable equilibrium point, even though fast-fast is just as good or better. The other 'prisoner' can always beat your fast by going slow, so they pick slow so they can't lose.
- nrmitchi 4y agoBut ACH isn't an ungoverned system where parties get to just behave in their own best interest. It, and the timing/behaviour, are governed by the NACHA Operating Rules. If you are being a bad party and failing to submit transactions on time so that you can collect a bit of extra interest, you are going to get a very large hammer brought down on you.
- xboxnolifes 4y agoNobody said anything about not being on time. Just not fast.