How can money be debited from your account instantly,yet take up to 3-5 days for a card transaction to be?

Question

refunded back into your account?

Answer 1

Because the original debit is not an ACTUAL debit. Its a promise to pay. The merchant, through the swipe, makes the attempt to see if you actually have the money in the account, and the bank says a little flag saying "yes he does" or "no he doesn't". It is not in effect saying "charge him", it is just saying "right now, he has the money to pay it".

The bank goes under the assumption that IF the swipe is made and IF you have enough money in the account THEN you are going to actually make the purchase. Whether you do or not, it 'seperates' that money from you. Its not in the hands of the merchant, its not in your hands; it sits in financial limbo until the debit goes through or is cancelled.

If can take up to twelve days (or more) for the merchant to actually submit the debit to the bank, or inform the bank that the debit for which they asked for the authorization isn't going to happen. The speed at which the bank recognizes this counts on your bank.

So in other words, it counts on the efficiency of two organizations( the merchant and the bank), not just one.

People have gotten in the habit of thinking of debit cards as neater credit cards, and that isn't exactly correct. Think of debit cards as what they used to be advertised as: check cards. Why? Because its closer to the truth. Just because you write a check that doesn't mean that money is instantaneously in the hands of the merchant; it could take days (or weeks). True, with the new legislation from last year, it takes less time, but it still isn't completely automatic. A check card is the same way; just because a portion of your money sits in "bank limbo" waiting for a charge or a cancellation it still isn't instantaneous; it, like a check is waiting for two processes (one from the merchant and the other from the bank) to actually happen.

Answer 2

and sometimes you make a switch transaction and it takes three days to leave your account
and you buy a car instantly by switch but your credit card company take 4-6 days to process the same information.
it sux
There is a new system rolling out over the next year that will allo instant transfer both ways

Answer 3

Ahh the mysteries of banking..Its based on the fact that the bank get the money straight away, but put it in your account two or three days later so they get the interest over those few days. purely a money making scam on the part of the wanks, sorry banks.

Answer 4

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Answer 5

Becuse when you debit, you use your pin card and its all electronic like an ATM machine.

When you get a credit, its signed for and must be processed by the bank.

Answer 6

Because the banks say it should be so, allowing them to earn interest on your money and also charge you extra if your balance becomes negative whilst waiting for the funds to be credited to your account.

Answer 7

It's a bureaucracy thing. ADH protocals and such. Refunding takes a little longer because it just takes more effort to accomplish.

Answer 8

good question i would like to know the answer as well but i supect that it is just another way big companies get to chock up there earning statments for those day/ weeks.

Answer 9

It's called the banks rodgering their customers !
It's also a way of making poor people go into the red and then they can rodger them again!
http://www.penaltycharges.co.uk/

Answer 10

the same reason it takes so long for a cheque to clear if you pay it in but comes out instantly if you write one out!