Please note I said it was it is in the same way that the Bank has the money but do not need to move it to the relevant account until after the next business day or two if this includes the weekend they can do so up to 4 days after the transfer has left the payer’s account (ie no longer in the payer’s account). They don’t use “that” money either, they use the funds in their “account”, simply a matter of paper balances. One transfer doesn’t make for much unless it is Millions of Dollars but the huge amounts that occur daily do particularly after what they term close of business for a day or a weekend even though they like to say it is 24/7 business.
My father was able to buy a share of the short term deposit or loan, by investing through the Bank in this market. If you have enough then the “Bank” do offer these to their select customers.
I had a brokerage account with a sweep feature whereby all free cash was moved into a money market account at the close of every business day, and if I ‘used’ money it was automatically ‘swept’ back into cash, instantly on demand.
I expect banks have a similar ‘account’ whereby all funds under their control migrate, or are migrated, to accumulate interest. As @grahroll noted when there are $millions in play, even a minuscule interest rate generates extra cash that accumulates toward the P/L.
Macquarie Bank seems to manage to get Paypal funds into my account PDQ (never same day, but never more than one day). Commbank has never done it, regardless of source. Even when I make a payment from Macquarie to Commbank on the CC, it is a 2 day wait time.
Going in the other direction my Westpac cards have auto-debit enabled for the monthly bills. On the appointed date the card accounts show the payment applied, yet the debits on the target ING Bank account only show 2 days later. The ING account continues to show all funds available in the interim.
I have noticed when using a plastic for payment, some transactions appear almost instantaneously, while other can take 24-48 hours to appear in the online account. I expect that the difference is the way that the merchant bank processes the transactions and how regularly it occurs (nightly, every few hours, immediately). The receiving bank (where our account sits), seems to have little control of when the monies are debited over a 1-2 day period.
ING shows the actual ‘available’ for all debits it knows about, but it seems there is a lag between when Westpac processes the card payment debit (seems like good old fashioned batch processing overnight), then sent to ING on a logical ‘tape’ the next day, and ING processes that in a batch the next night. or maybe on receipt late in a day? Very old school, but it would explain what happens.
If I wave the ING debit card (processed by the credit system, thus pending for a few days) the available immediately decrements accordingly. FWIW I am very happy with ING.
When I use my Watch to make a payment (which I have been doing since before Christmas), Macquarie is very speedy in removing the fund from my account. I get a notification on the watch immediately. As to whether those funds end up in the supermarket, petrol station or whatever account quickly… well, thats a whole nother matter.
but only overnight of five nights out of seven. Fred’s 1970s anecdote of elapsed time over the weekend rings true today where organisations use batch processing.
Anyone wanting instant payment and has the option, I can recommend the relatively new service which hides your banking details from your transfer participant eg never hand over your BSB and account number again, and also works almost instantaneously. PayID. It uses your phone number OR email address. Works like a charm.
PayID is part of the New Payments Platform.
A better way of doing money transfers than the ‘pay anyone’ feature that has been around for a long time. Should be more secure. Should be near realtime.
The mode is bank dependent when I lodge a transfer and Osko transfers are near real time even for BSB+account transfers in my experience. The relationship between Osko and the NPP is topically shown
Each bank has its own daily limit protocols and so on. Mine has low(er) limits for Osko transfers and when the threshold is exceeded it goes next day.
I think you will find this interesting, I have had a credit card with one of the large banks for 30 years, just recently I lowered my credit ceiling to a lower amount for safety, that was November. December, January I keep getting emails from companies that I had auto payment for, they said that when they tried to take their payment there was no fund available and the payment had not gone through. This couple of months if had to put more money in to keep the balance below the credit limit than what the monthly statement was.
I would appreciate if any one has had the same experience to explain it to me.
1 Have the banks changed the number of credit free days for pensioner, I thought it could be up to 55 Days
2 If you pay the amount on the statement by the due date, which we have done most of the time there are no fees
3 THis is the reason that my autopayments’ were not made on time, the banks use the term Point of sale to hold the amount of credit on the card to cover the amount coming in
If for example you had a $1,000 balance on your card and you then lowered your ceiling (limit) to $500, you would not be able to charge or pay anything further until your outstanding balance was below $500, including the new charge or payment.
There are no ‘credit free’ days. There are ‘interest free’ days where if the monthly balance is paid in full no interest is charged for that billing cycle.
More information is required to answer that but guessing what you are asking, if the minimum payment or more is made there is no late fee. If the total outstanding amount is paid some cards do not charge interest on that billing cycle.
I am confused by your statement. When a charge is made it goes through an authorisation process and once authorised the amount is held against the available credit limit. The charge may not be finalised for a few more days. As my above example, if your limit is $500 and you have a $475 balance, you could only charge or pay $25 and anything higher would be declined (unless the bank allowed over-limit transactions). If your limit was $500 and you had a $400 balance and made a charge for $50, your available additional charge or payment would be limited to $50 once the charged $50 was authorised (even if not finalised). ($400+$50+$50 = $500 hoping that makes sense)
When a bill is direct debited to a credit card nothing is held until the debit is executed.
If that does not answer your query please provide clarifying or additional information.
In addition to what @PhilT has posted, have you received a new credit card around October last year. We recently found that new cards are issued with different details to the past ones and one has to arrange any automatic payments to be updated with the new card details otherwise the automatic payment will be declined.
Good point. Some details of a card will change. Like the expiry date and CVV.
That will affect automatic debits on credit cards.
Not a big issue for me because I only have two auto debits on my credit card. And both let me know when the expiry date is coming up. Thanks Choice.and Internode.
time there are no fees