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This doesn’t change the premise of your argument but to clear up your understanding - no one is able to instantly take payments from your credit card. Your cred
by devmor 2y ago
This doesn’t change the premise of your argument but to clear up your understanding - no one is able to instantly take payments from your credit card. Your credit card company records the transaction as having taken place long before any money actually moves.
They are far more cautious about giving leeway on the conduct of the consumer than that of the merchant.
3-7 business days gives the merchant’s bank long enough to debit the funds, ensure they exist, then send them back, with a buffer for errors.
- gordonfish 2y agoWhy does that require so many days? Banking is all digital, yet it is still being treated like it's the 1950s.
- devmor 2y agoWell, the good news is that the Fed recently rolled out the first phase of a replacement ACH system (FedNow) that does instant transfers. The bad news is that it will be decades before most major payment systems move to it. I haven’t worked in fintech long enough to tell you why it was modeled to take so long, but I would hazard a guess that it’s because the primary method of moving money was paper checks and physical card impressions until the last couple decades.