How come when I make an electronic deposit to my account (such as Paypal) it takes 3-4 days for the money to show up. Yet, when I make an electronic debit, that seems to be deducted from my account within 3-4 minutes?
2007-01-14 16:08:56 · 6 answers · asked by Timmbbo 1 in Business & Finance ➔ Personal Finance
The debit from your credit card or debit card is not actually withdrawn right away but is captured and held for the activity of what ever purchase you made...Example...You get gas at a gas pump...Your card will be charged for $1.00...a day or two later the actual amount is withdrawn of charged to your account...It takes the same amount of time for both transactions...Only when your purchase something that amount is captured and taken from your credit card or debit card immediately to ensure the funds are available....Hope this helps!
2007-01-14 16:14:39 · answer #1 · answered by matty441 3 · 0⤊ 0⤋
They teach you these things in college finance classes.
If you (as a bank) are earning an average of 10% return on the deposits in your vault, 1 day of income is worth about $275 in investment income for every $1 million in your vault.
You learn real fast to take deposits as quickly as possible, hold them as long as you can justify, and then release them for your patrons to use. If you can justify holding deposits for 5 days until the funds can be "verified", you've just made 5 days of interest.
(It takes about 3 seconds to verify funds. You know this because lowly cashiers at the grocery store can tell you whether your debit card is good or not.)
2007-01-15 04:44:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋
With a debit, the money's already there in your account. With a deposit credit, it needs to clear first. Otherwise you could "deposit" a rubber check into your account for $10,000 and withdraw $9,999 before the check clears.
2007-01-15 00:12:06 · answer #3 · answered by Anonymous · 1⤊ 0⤋
it is an illusion. 3-4 minutes takes just as long as the electronic deposit-the company accepting the payment gave you credit when the payment was made.
2007-01-15 00:12:58 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Maybe because it is that paypal thing , not a real bank .
My instituions only take 24 hours for a deposti and debits don't process for 24 hours either.
2007-01-15 00:17:36 · answer #5 · answered by kate 7 · 0⤊ 0⤋
..very good question...
..and interest to be charged immediately one is overdue...but nothing if one pays much earlier than due...
2007-01-15 00:17:59 · answer #6 · answered by Maggi 4 · 0⤊ 0⤋