When consumers need to transfer money urgently, whether that’s to pay bills, cover emergency expenses or loan money to a loved one, they don’t want to wait three days for the money to be available. Emergencies happen, and when they do, people need money now – not three days from now.
Infuriating as the waiting period for transferring funds can be, there are valid reasons for the delays. Most banks hold transfers for a “three-day good funds” period to ensure that the sender has the money in his or her account and to prevent fraudulent transactions. Traditionally, transactions aren’t completed until the receiving bank settles a transaction, meaning that it has the money before the transfer completes and the cash becomes available.
All of this makes sense, at least from the traditional paradigm. But technology is accelerating financial transactions, and customers expect fund transfers to keep pace. Fortunately, there are ways to do this without sacrificing security.