One of the Great Mysteries of Life

Oh yes - that is definately something I have pondered on many times too. I guess what it boils down to is that the Manks have to make their money somehow, and they mainly make it by hanging on to other peoples' money in some kind of "clearing house" where it earns interest for them and not for their customers! Here in England it normally takes 3-4 days for a cheque to clear, and if you make a payment to a credit card or anywhere else online, it also deducts from your account straightaway, but takes up to 7 days to credit the other account! As you say - one of those great mysteries in life!

The answer is simple, pyewacket. When they're taking money from you there is an urgency, however, when it's you that is receiving the money there's no rush. They figure you're not in a hurry to receive that money, lol. Another of lifes little inconsistencies. When it comes to them, they want theirs right now, but you're just the consumer.

I have never really thought about that before. It sure is a mystery. I'm sure there is a logical explanation.lol

The same thing happens in many areas. When the oil barrel price goes up, the petrol price rises immediately. When the oil barrel price goes down, the petrol price stays the same for a weeks or so - or until it goes up again.

If the check you are depositing is written on an account with the same bank, it usually goes through the same day, but otherwise, they will take a couple of days to credit you with it. One reason I think that they do this, is that if you have debits come in after that deposit but before it is credited, they can still charge you for insufficient funds fees if you are in overdraft without the deposit. Banks make about 56% of their income on penalties and fees charged on things like bounced checks, ATM fees and even fees they charge you to use the human teller (some banks actually do this). I am disappointed in the length of time it takes to transfer money from PayPal to a checking account and I too, think they could speed it up. I don't know what their reasons are, but probably it costs them less in administrative fees to take the long way, rather than do it instantaneously.

I'm not a great fan of banks, but their answer would be that this protects you, their customer, and prevents fraud, which protects the whole banking system. The theory is that until a cheque or other payment "clears", there is a risk that it will bounce, in which case someone loses. If you had already withdrawn the money, your account might be in overdraft - which at the very least would cost you a hefty service charge. If the clearing process were faster, this delay wouldn't be necessary. The reason a withdrawal goes through so fast is because there is no question about it: you've spent the money, it's gone. For incoming money, until the cheque or payment clears, there is some doubt about whether the transaction will be completed.

Do you know I actually asked this at the Bank once and they could not give me an answer lol

All is the paper work, I guess. Got to keep the employees of the banks busy! LOL. Also...if you use your debit card as a debit...it goes out of your account immediately, but if you use your debit card as a credit card, it will go through the credit card process which takes several days to show up. Intersting, huh? I found out accidentally by using it at Sonic and seeing how it showed up in my account.

I think the institutions that we deposit our money into like to hold onto it as long as possible. I think it gives them a power trip or something to that effect. Pretty sad isn't it? LOL

Yep...amazing isn't it that electronic transfers only work one way..LOL..yeah right...

Because in that case the banks are earning interest on your money instead of you. If the bank is making money - they hold it, if they aren't, well, they pull it so they can.

I have always wondered that myself. I once had to wait 7 days for a deposit to be available, but debits are instantaneous...lol. That has bugged me for forever. That and the way they charge you to talk to a live person about your account. Now you have to do everything via automated phone or else get charged.. lol. If you ever figure it out, be sure to let me know.... :)

Yep I feel the same when I accidently overdraw myself they cant wait to rush and put that overdraft charge on there! I really wish at times I didnt have to deal with banks I get sick of them.

Well Pyewacket, the banks are earning on our money, and we do not get richer, yet they do. Qucikly to take our cash off, and slow to place it where it should be...

hmmm now that is something to ponder, I wonder if it has anything to do with this is in the best interest of the banks or maybe they have to double check or maybe triple check that there is actual real money behind the money put in, but it is funny how everything does seem to go their way. profit profit profit

They sure are fast to take, that is the truth. They get in no hurry to give though, do they. It is crazy.

Finding Hoffa would be easier to solve! lol! It took ten days to get money from my bank account to my paypal account, way too long! Since i didn't need it there,i want the money back in my bank account, another three to five day wait! Again way to long! Gee, where's the Pony Express when you need em? LOL! Take care Pyewacket.

I started a new job a few months ago, one of the people that got hired went, started an account at the bank the company uses for their banking. She got her first paycheck, went to deposit it there and surprise...they put a 3 day hold on a check from their own bank. There is something definitely wrong there. The samething with credit cards, I bought something one time, in minutes the transaction hit my account, it took 7 weeks for it to get there when I returned it.

Oh don't worry Pyewacket,The bank receives the funds alright but that gives them the time to use it without you using it.It's free money for them to play with for a couple of days invest it in whatever to cover the phony accounting that they keep.I think it's a scam that a lot of people never pay any attention to;at least not enough to get the government to do anything about.

That's how the economy works. The stronger rules the world. Like in the jungle. I wish it could be a little more fair.