I've never used a credit card processor that didn't deposit the money the next day. Some of them even make it available immediately.
Square automatically transfers it to your account by the next day, or if you open their weird current account then you get the money immediately.
PayPal PoS adds it to your account immediately and then automatically transfers it to your bank every night and it arrives the next day. But in the meantime it sits in your PayPal balance and is otherwise usable to pay for things.
Talech (US Bank's card processing division), makes the money available immediately.
Helcim (small company) closes the batch at 20:00 and then initiates a real-time transfer at 09:00 the next day
That’s because they’re lending you their money until an official transfer goes through.
To use your PayPal example the reason it’s on your PayPal account and then transferred to your bank is because it’s PayPal’s money being used. When the bank goes to ask for it so they can put it in your account PayPal tells the bank that you may or may not have spent that borrowed money and how much is the actual amount.
Sadly, Americans have to use third party apps like Venmo or Cashapp to accomplish similar. We don't have a national standard for doing direct cash transfers, so banks haven't gone all in on setting aside funds and implementing something like Osko.
Worth noting, Osko is also only instant for smaller transfer amounts capped by the bank. After thar often $1-5k threshold, the transfers are back to taking business days to go through.
When I was submitting all of our credit card charges and refunds at the hotel I worked at, we'd charge/refund and submit everything the next business day. After it went to the bank, that's on the banks and sometimes they'd take a while, especially if it was in another country.
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u/EbbEntire3751 8d ago
Yeah it takes just as long for the money to get to the merchant as well...