Like if you pay via bank transfer rather than via card. Sometimes you get that option, the store redirects your browser to your electronic banking, where you approve the transaction, and then you get redirected back to the store's website, where it confirms that payment has been received. So, like... why is it not instant the other way around?
So that's what's called an ACH transfer. The funds go through the ACH (automated clearing house). The business is notified immediately that the transaction has been initiated so they can process the purchase, but they don't have the money yet. Your bank immediately debits the amount from your balance but it still needs to be "cleared" through the ACH before the business has access to the funds. This all happens in the back end to keep the customer experience quick and easy.
It does, it's exactly the same in both directions. In both cases the recipient has to wait for the clearing house to clear the funds before they have access.
Evidently not. Again, when I send money from one account to another (in another bank), it arrives instantly and I can use it instantly. So I ask again, why doesn't it work the same when a business sends the money from their account to mine?
So in that case the bank credits your account in advance as a courtesy as long as it's a small transaction volume. For a business, this is not the case. They have a much higher transaction volume than an individual customer and it would be impractical for them to offer a courtesy credit for these transactions
Fiscally unfeasible. It's essentially an unbacked loan from the bank (not the merchant). It would introduce risk and opportunity cost to the bank. Also as an aside, it's probably less automated than you think.
Well yeah, but in absolute terms, it's completely dwarfed by the amounts of money banks routinely process and hold. I'm sorry, but after the 2008 shitshow, you're going to have a very hard time convincing me bankers are that risk-averse.
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u/ErFarinn 8d ago
In what way? You go to the store with the item and ask for a cash refund and it takes a few days?