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Author Topic: Tranferring money between banks  (Read 430 times)

Ryan

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Tranferring money between banks
« on: March 04, 2010, 05:32:23 AM »
Admittedly I know nothing about the inner workings of bank to bank transfers.  Can someone explain to me why it takes several days to transfer money between them?  And where is my money in the meantime? 

jkleb

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Re: Tranferring money between banks
« Reply #1 on: March 04, 2010, 06:40:15 AM »
Unless it's cash in your hands, it's just a bunch of binary numbers floating around waiting for people to agree on what they say.
-John
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Ginnypenny

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Re: Tranferring money between banks
« Reply #2 on: March 04, 2010, 08:38:52 AM »
I spent a big part of my working career working for a freight auditing company (I wrote programming to allocate funds to departments within companies).
I learned a lot about money there. One thing that some freight auditing companies do (ours didn't on purpose) is to "float" the client's money. They do this by gathering all the bills for a client from all the freight companies they use, ask the client for one big check, then they pay the freight companies. It seems like a nice service, except they take a few days to pay each carrier and when you are dealing with hundreds of thousands to even millions at a time you are gaining money each day it's sitting in your account.
Now, not to be a conspiracy theorist but I wonder if the bank that you are transfering money from just takes their time for some reason like that. It seems to me that as soon as the recipient bank gets the info the money is in your account immediately.
Another thought is how when you go to a department store and buy something on your credit or debit card the money is almost instantaniously out of your account. However if you need to return merchandise and they put it back on your card it can take 2 weeks! I think that is the banks fault not the department stores.

My answer is: I don't know, actually, I just couldn't help but share some thoughts that may or may not have anything to do with the question.  :biggrin:

Ryan

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Re: Tranferring money between banks
« Reply #3 on: March 04, 2010, 08:49:28 PM »
I've got the same kind of conspiracy theory going in my head.  Most of my transfers are from Paypal to my primary account which probably makes it a little different since Paypal isn't a bank.  Fortunately there's never been an issue where I really needed the money I was transferring right then. 

The it's all ones and zeros talk is a little disconcerting, but true.  I'm sure they've got better backup systems in place than I do, but it's a touch frightening that a data mishap could empty out a bank account.

Lauren Silcock

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Re: Tranferring money between banks
« Reply #4 on: March 05, 2010, 01:54:26 AM »

The it's all ones and zeros talk is a little disconcerting, but true.  I'm sure they've got better backup systems in place than I do, but it's a touch frightening that a data mishap could empty out a bank account.

Yeah....Hmm... Now I'm scared too. Lol

jkleb

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Re: Tranferring money between banks
« Reply #5 on: March 05, 2010, 11:31:07 AM »
The other option is that someone has to physically take cash and transfer it from one location to another. I think the ones and zeroes are safer than that.
-John
Sarcasm, frustrating the clueless since 3000 b.c.
"There is no Un-Suck filter" David duChemin

Check out the new blog. http://www.jklebphoto.wordpress.com

Ginnypenny

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Re: Tranferring money between banks
« Reply #6 on: March 05, 2010, 11:39:53 AM »
Yeah I trust digital-ness. I'm good.

 


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