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US banks are too busy delaying their customers’ ach transfers for days so they can profit from the float to actually solve customer problems and take responsibi
by coderatlarge 1y ago
US banks are too busy delaying their customers’ ach transfers for days so they can profit from the float to actually solve customer problems and take responsibility for the many societal benefits they enjoy.
- dgfitz 1y agoDon't know if this is true, but I read this a few years ago, top answer: https://www.reddit.com/r/explainlikeimfive/comments/se51wb/eli5_ach_deposits_why_do_they_take_so_long/ https://www.reddit.com/r/explainlikeimfive/comments/se51wb/e...
- Tadpole9181 1y agoI've seen a "pay me a few bucks and I'll do it instantly", so pretty sure it's not a technical issue. It's a "we can charge a few bucks if we don't fix it" issue.
- fredfish 1y agoI had a bank VP tell me Bill Clinton fixed the US' deficit by moving tax settling to be immediate on them. The strings of my little fiddle broke.
- quesera 1y agoDefinitely not a technical limitation. ACH clearing (transaction information) happens multiple times per day. Originating bank sends a list of transactions to the clearing house, Receiving bank is notified of transaction pending. ACH settlement (bank-bank funds transfer) happens overnight. Funds from the Originating bank are "rehomed" to the Federal Reserve, and then again to the Receiving bank. This is, obviously, a database update. ACH posting (funds available to customer) happens whenever the Receiving bank feels it's appropriate. Generally, by local close of business on the settlement lot schedule (same day or next day). The receiver may choose to delay posting to customer account if they don't trust the Originator, or the customer, or just for fun. ACH transactions are reversible. This is the reason posting happens as quickly as it does (!), but also the reason posting takes as long as it does.
- 0cf8612b2e1e 1y agoI honestly want slower transactions as a service. If I get hacked, my accounts are going to be drained in milliseconds. Instead, I want specific accounts to have a minimum N days to money extraction. Lots of time for me to be able to put a halt on unexpected money movement.
- coderatlarge 1y agothe number of financial institutions that don’t offer yubikey (or any hsm) support shocks me. ditto lockdown mode. on delays “for security reasons “, see my other comment above about 10 day holds on funds that hsd anyway been at that credit union for months.
- supportengineer 1y agoI recently tried to write a check from Mom & Pop's Yeehaw Bank to a major name bank. They put a FIVE DAY hold on it.
- coderatlarge 1y agoi recently wrote a check to another member of the same credit union. they deposited the check to their credit union account. the credit union insisted on a ten day hold!!
- testing22321 1y agoI’m 43 and have never written a cheque in my life. Utterly useless things when you have good customer centric regulations.
- coderatlarge 1y agowe resorted to checks because we hit a non-transparent zelle limit which is not documented anywhere.
- testing22321 1y agoNever used Zelle or paid a transaction fee.
- coderatlarge 1y agoif you ever need to transfer money across far enough borders from your home, it’s currently almost impossible to avoid paying some sort of fee afaik (whether an airplane ticket to hand-carry cash or some kind of markup to convert currencies or some sort of blockchain fee to use newer methods). i’m actively looking for methods that are legal and don’t carry a fee. ex ibkr currency convert -> fidelity individual account -> fidelity cash mgmt -> free wire ?? there are all sorts of gotchas at every step atm ostensibly for aml or sanctions “compliance“