Does anyone know why payments take x amount of days to clear?

spitzoid

spitzoid

spitzoid

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Could anyone explain why payments, specifically online payments, take days to clear?

I have wondered about this for a while now. I can understand there being a delay for a physical cheque but surely online payments should take no more than a couple of hours?

Recent example: A friend transferred some money from his bank to mine using internet banking and got a message saying this will take 3-4 days.

Questions: Why isn't it faster? Why couldn't they be more precise with the timescale? Is it the same for a business? Where does the money go i.e. it has left his account but is not in mine?

Banking confuses me at the best of times so could anyone answer these questions in layman's terms?
 
I want to give you a serious answer, but honestly my brain is forcing me to say "Cause all the banks are complete spaz's..."

Sorry :(
 
Transfers between banks usually take a couple of hours at most these days.


You or your friend are just with one that can't be bothered to offer a decent service.
 
Technically, digital banking should be near instantaneous, but banks are ghey. I deposited some cash in today, and it'll take between 3-5 days until I can withdraw it again. Surely, all it takes is for someone to count out the money and make sure it's correct? Takes probably 10-20 seconds to do that. But, like I said, banks are ghey.
 
D D Danneh said:
Technically, digital banking should be near instantaneous, but banks are ghey. I deposited some cash in today, and it'll take between 3-5 days until I can withdraw it again. Surely, all it takes is for someone to count out the money and make sure it's correct? Takes probably 10-20 seconds to do that. But, like I said, banks are ghey.
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Huh?


These days you don't even have to wait for money deposited in cash machines to 'clear'.
 
Placed some money into my sons account [different bank and area] showed on his screen in 10 minutes.

Pay my C/Cards over the net with debit card using 'Fast banking' [I think that's what its called] and its paid in 2 hours or less. Both your bank and the receiving bank or company need to sign up to the service but as far as I know there is no extra charge for this. :)
 
Banks have always used something called a 'Clearing house' or something like that, basically a place that goes through each transaction and makes sure there's nothing illegal about it, god knows why it takes so long though. It is very annoying when I was trying to transfer £4k and had to wait for it.
 
For most banks payments now only take a coupl of hours. Lloyds is the only major bank I can think of who still take 3 days. They will do it same day if you do the transfer by telephone banking and specifically ask for fast banking (not CHAPS or telegraphic transfer).

Lloyds are theiving gypsies.
 
On Nationwide's online banking if I pay off my credit card with my debit card (i.e. both online with the same bank) it takes 2-3days for the bill to be paid off. Go figure.
 
D D Danneh said:
Technically, digital banking should be near instantaneous, but banks are ghey. I deposited some cash in today, and it'll take between 3-5 days until I can withdraw it again. Surely, all it takes is for someone to count out the money and make sure it's correct? Takes probably 10-20 seconds to do that. But, like I said, banks are ghey.
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Jez said:
You deposited cash and it didnt credit instantly? I have never EVER heard of a bank doing that :confused:
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I can't see that his info is accurate. Otherwise its the worst bank ever..
 
[DOD]Asprilla;14018659 said:
For most banks payments now only take a coupl of hours.
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This. If I remember rightly some new system was brought in by most of the big banks not that long ago that makes most transfers etc pretty fast now. I think HSBC online transfers quote a max of 3 hours now?
 
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