OT: Electronic CC payments

[RUaMoose]

Why does it take 3 friggin business days ( not calendar days) for a bank-to-bank online CC payment to register? I remember back before the internet if I dropped my payment in the (snail) mail on a Thursday it would post on the following Tuesday maybe even Monday. Now it seems like electronic transactions are like the old snail mail while with snail mail you better give it 7-10 calendar days. I sent my Capital One CC payment (from BOA) Saturday morning it didn’t post till Wednesday, one day late, thus I got hit with a $25 fee ( called them and got it waived) . I thought technology was so great?

 

[Knight Shift]

Why does it take 3 friggin business days ( not calendar days) for a bank-to-bank online CC payment to register? I remember back before the internet if I dropped my payment in the (snail) mail on a Thursday it would post on the following Tuesday maybe even Monday. Now it seems like electronic transactions are like the old snail mail while with snail mail you better give it 7-10 calendar days. I sent my Capital One CC payment (from BOA) Saturday morning it didn’t post till Wednesday, one day late, thus I got hit with a $25 fee ( called them and got it waived) . I thought technology was so great?

It's probably due to sonar mapping of the ocean floor for windmills or EVs.

@RU4Real , amirite?

 

[PSU_Nut]

Why does it take 3 friggin business days ( not calendar days) for a bank-to-bank online CC payment to register? I remember back before the internet if I dropped my payment in the (snail) mail on a Thursday it would post on the following Tuesday maybe even Monday. Now it seems like electronic transactions are like the old snail mail while with snail mail you better give it 7-10 calendar days. I sent my Capital One CC payment (from BOA) Saturday morning it didn’t post till Wednesday, one day late, thus I got hit with a $25 fee ( called them and got it waived) . I thought technology was so great?

Why would you not just pay directly from Capital One? Seems your gripe should be with BOA bill payment system. I have heard to many story like this with banks messing up payments. You are better off paying directly and have them withdrawal the payment.

 

[SouthJerseyRU]

Because much of the current system is a rat's nest of code, rules and systems that works and everyone is afraid to do something differently. A lot of times transactions are done in batches and nothing has changed behind the scenes in a long time (for the US system at least).

More in detail, there was a ELI5 on reddit a while ago about this, should help with the details.

 

[RU76COOK]

Why does it take 3 friggin business days ( not calendar days) for a bank-to-bank online CC payment to register? I remember back before the internet if I dropped my payment in the (snail) mail on a Thursday it would post on the following Tuesday maybe even Monday. Now it seems like electronic transactions are like the old snail mail while with snail mail you better give it 7-10 calendar days. I sent my Capital One CC payment (from BOA) Saturday morning it didn’t post till Wednesday, one day late, thus I got hit with a $25 fee ( called them and got it waived) . I thought technology was so great?

3 days from BOA to Capital One. Lightning Fast! How about 5 days to "transfer" from Regions checking to Regions CC.

 

[Rutgers Chris]

Why does it take 3 friggin business days ( not calendar days) for a bank-to-bank online CC payment to register? I remember back before the internet if I dropped my payment in the (snail) mail on a Thursday it would post on the following Tuesday maybe even Monday. Now it seems like electronic transactions are like the old snail mail while with snail mail you better give it 7-10 calendar days. I sent my Capital One CC payment (from BOA) Saturday morning it didn’t post till Wednesday, one day late, thus I got hit with a $25 fee ( called them and got it waived) . I thought technology was so great?

Blockchain fixes this

 

[RUaMoose]

Why would you not just pay directly from Capital One? Seems your gripe should be with BOA bill payment system. I have heard to many story like this with banks messing up payments. What BOA is doing is actually writing them a check and sending it then once they receive it they process it. It not a direct ACH payment . You are better off paying directly and have them withdrawal the payment.

No way. If banks wrote a physical check to another it would be more than 3 business days.

 

[MADHAT1]

What even worse is the time it takes for a letter you mailed, with check for what owed, to your next door neighbor to reach that cheat for what you lost on the Lakers.
I'm getting tired telling him "check's in the mail". 😇

 

[RUBlackout7]

Biggest benefit of crypto

 

[RUaMoose]

3 days from BOA to Capital One. Lightning Fast! How about 5 days to "transfer" from Regions checking to Regions CC.

Yeah you get my point. It shouldn’t take long at all, maybe 24 hours tops. It’s all computers which are up 24/7 & if they’re not up on a Sunday & you work in IT you’ll be called to get it up

 

[RU4Real]

The second answer in the Reddit thread is the most correct one - the delay is related to ACH and the availability of reciprocal reversal.

And no, blockchain doesn't "fix this", at least not within the constraints of the current regulatory architecture. Also, large commercial banks aren't all that enthusiastic about blockchain because of the enormous compute that's required for an enterprise implementation.

 

[RU4Real]

Yeah you get my point. It shouldn’t take long at all, maybe 24 hours tops. It’s all computers which are up 24/7 & if they’re not up on a Sunday & you work in IT you’ll be called to get it up

Is there no end to the things you don't know anything about?

 

[Knight Shift]

Is there no end to the things you don't know anything about?

That's a rhetorical question.

 

[koleszar]

Blockchain fixes this

You cryptocurrency guys need to stick to your one thread

 

[RUaMoose]

Is there no end to the things you don't know anything about?

Do you walk around with a big red nose and floppy feet? It’s a legit question

 

[Rutgers Chris]

You cryptocurrency guys need to stick to your one thread

Lol, it’s the truth though 🤷🏻‍♂️

 

[RUScrew85]

I'm going to go with the bank keeps the money on their accounts for a day or so to earn interest or investment income on your float.

 

[rutgersdave]

Why does it take 3 friggin business days ( not calendar days) for a bank-to-bank online CC payment to register? I remember back before the internet if I dropped my payment in the (snail) mail on a Thursday it would post on the following Tuesday maybe even Monday. Now it seems like electronic transactions are like the old snail mail while with snail mail you better give it 7-10 calendar days. I sent my Capital One CC payment (from BOA) Saturday morning it didn’t post till Wednesday, one day late, thus I got hit with a $25 fee ( called them and got it waived) . I thought technology was so great?

Why don’t you get BOA CC so you can make internal transfer at BOA and lots of cash back programs and cash for opening up new CC? I have BAC account and credit cards.

I also noticed when I wanted to transfer cash from one bank to another it took 3 days. It probably helps with security having transfers take a little longer. Don’t wait for the last day to transfer, you’re not getting much interest for the one day,

 

[czxqa]

I'm going to go with the bank keeps the money on their accounts for a day or so to earn interest or investment income on your float.

No they can't do that, it's illegal.

 

[RU4Real]

Do you walk around with a big red nose and floppy feet? It’s a legit question

No. I do not.

See? Easy, right?

Your previous post shows kindergarten-level knowledge of how financial data centers operate. My point is, if you know absolutely nothing about the subject matter at hand, maybe don't conjure some irrelevant drivel in your head and call it "contributing".

 

[Rutgers Chris]

Biggest benefit of crypto

This thread is for problems, not solutions

 

[RUScrew85]

No they can't do that, it's illegal.

Really? I'm stunned.

 

[rutgersal]

Why does it take 3 friggin business days ( not calendar days) for a bank-to-bank online CC payment to register? I remember back before the internet if I dropped my payment in the (snail) mail on a Thursday it would post on the following Tuesday maybe even Monday. Now it seems like electronic transactions are like the old snail mail while with snail mail you better give it 7-10 calendar days. I sent my Capital One CC payment (from BOA) Saturday morning it didn’t post till Wednesday, one day late, thus I got hit with a $25 fee ( called them and got it waived) . I thought technology was so great?

Setup your capital one card for automatic payment. Then the delays on them, not you. That’s what I did and never had an issue. And my checking is with boa too.
Ask capital one for a one time refund. As long as you have good payment history, they’ll grant it.

 

[wheezer]

I have three credit cards that automatically, on auto pay, taking the payment out of my checking account

It could be on the last day due if I so choose and it is never late
I also have my public service bill, phone bill, cable bill on autopay

 

[RUaMoose]

i did get Setup your capital one card for automatic payment. Then the delays on them, not you. That’s what I did and never had an issue. And my checking is with boa too.
Ask capital one for a one time refund. As long as you have good payment history, they’ll grant it.

I did get refund as I indicated in my OP. I know I can set it like you suggest but my question is why should it take so long in the first place. You'd think with all this great technology I hear about two major banks should be able to complete a simple electronic financial transaction within 24 hours or so.

 

[rutgersdave]

I did get refund as I indicated in my OP. I know I can set it like you suggest but my question is why should it take so long in the first place. You'd think with all this great technology I hear about two major banks should be able to complete a simple electronic financial transaction within 24 hours or so.

Three Day Good Funds Model
The receiving banks often take 2-4 days for funds to be released to customers because they are following what they call the “”three-day good funds model”, which basically means they'll hold the funds for three days to make sure it's not a fraudulent transaction.Feb 20, 2019

As I mentioned earlier for security reasons coming from a former auditor.

 

[RU4Real]

You'd think with all this great technology I hear about two major banks should be able to complete a simple electronic financial transaction within 24 hours or so.

They could. But that's not how it works. The banks don't engage in direct transactions, ACH sits between them. It is a hub and spoke architecture and the step-wise delays are built into the process so as to maintain regulatory compliance and safeguard against repudiation.

 

[rutgersguy1]

I don't autopay bills except for some fixed bills. I like to see the bills and "release the money" myself and see that there are no mistakes or increases that I wouldn't otherwise be aware of happening. I don't want bill paying to be "lost in the ether" and not in my awareness.

Also I've paid credit card bills and almost always it's debited and posted the next day. Only if I pay it on a Friday, it's posted on a Tuesday. I just paid one yesterday and it was debited and posted today and I got the alert from the CC company that the bill was paid.

 

[RUaMoose]

They could. But that's not how it works. The banks don't engage in direct transactions, ACH sits between them. It is a hub and spoke architecture and the step-wise delays are built into the process so as to maintain regulatory compliance and safeguard against repudiation.

Great explanation. Thanks

 

[rutgersal]

I did get refund as I indicated in my OP. I know I can set it like you suggest but my question is why should it take so long in the first place. You'd think with all this great technology I hear about two major banks should be able to complete a simple electronic financial transaction within 24 hours or so.

Some banks have good technology. Others are way behind. Amex takes your money out the same day.

 

[mildone]

They could. But that's not how it works. The banks don't engage in direct transactions, ACH sits between them. It is a hub and spoke architecture and the step-wise delays are built into the process so as to maintain regulatory compliance and safeguard against repudiation.

I need to get me some of that compliance and safeguards against repudiation for my love life. 🙂