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IIRC the banks in the US had to be forced (by law) to make the funds available in 24 hours. That doesn't mesh with what you have said at all. [edit] Also, th

IIRC the banks in the US had to be forced (by law) to make the funds available in 24 hours. That doesn't mesh with what you have said at all. [edit] Also, the banks really would rather not be loaning their customers money interest-free (which is what happens when they make funds available prior to fraud checks finishing). I think you have the incentives completely wrong.

pc86 3y ago
If both you and your competitor bank can come back 90 days later to withdraw fraudulent funds, you can advertise that your deposits are available immediately while theirs aren't. What is the risk to you? You can just pull the money back. There is no technological roadblock from verifying within seconds that a) a bank account exists with the given account and routing number; b) it is associated with the name on the check being deposited; c) it has available funds to cover the balance of the check. As it stands the banks give you the money as soon as its deposited (or very shortly thereafter), but that's no risk to them. They can come back and get it whenever should they need to. If you didn't allow them to do that, we'd have the infrastructure for instantaneous fraud checks/balance verification nearly overnight.
- aidenn0 3y ago
  > If both you and your competitor bank can come back 90 days later to withdraw fraudulent funds, you can advertise that your deposits are available immediately while theirs aren't. What is the risk to you? You can just pull the money back. The risk is insufficient funds in the account to cover the deficit > There is no technological roadblock from verifying within seconds that a) a bank account exists with the given account and routing number; b) it is associated with the name on the check being deposited; c) it has available funds to cover the balance of the check. As it stands the banks give you the money as soon as its deposited (or very shortly thereafter), but that's no risk to them. They can come back and get it whenever should they need to. You missed "d) was printed by a forger with otherwise valid information"

pc86 3y ago

If both you and your competitor bank can come back 90 days later to withdraw fraudulent funds, you can advertise that your deposits are available immediately while theirs aren't. What is the risk to you? You can just pull the money back. There is no technological roadblock from verifying within seconds that a) a bank account exists with the given account and routing number; b) it is associated with the name on the check being deposited; c) it has available funds to cover the balance of the check. As it stands the banks give you the money as soon as its deposited (or very shortly thereafter), but that's no risk to them. They can come back and get it whenever should they need to. If you didn't allow them to do that, we'd have the infrastructure for instantaneous fraud checks/balance verification nearly overnight.

aidenn0 3y ago
> If both you and your competitor bank can come back 90 days later to withdraw fraudulent funds, you can advertise that your deposits are available immediately while theirs aren't. What is the risk to you? You can just pull the money back. The risk is insufficient funds in the account to cover the deficit > There is no technological roadblock from verifying within seconds that a) a bank account exists with the given account and routing number; b) it is associated with the name on the check being deposited; c) it has available funds to cover the balance of the check. As it stands the banks give you the money as soon as its deposited (or very shortly thereafter), but that's no risk to them. They can come back and get it whenever should they need to. You missed "d) was printed by a forger with otherwise valid information"