In a world of fast technology, Why does it take 4 days to process a check?

Question

After a 2 week wait for it.... I think they can do better!

Answer 1

Hey Linda,
The banks make interest on it by keeping the money
as long as they can.
Great Question.

Hugs,

Answer 2

It's all a game. In reality the checks can be cleared in 15 seconds or less. What the banks do is float the money. They gain interest off of the floating balance. Then if the check bounces, they go ahead and charge both the ones that wrote it and the ones that deposited it, and since it is all automated, there is zero actual cost involved - they just sit back and collect the fees. The only way to get ahead of the game is to actually keep cash in the account - something very hard for most of us to do as we live paycheck to paycheck.

Answer 3

Generally it doesn't. The Federal Reserve banks are switching to imaging and won't even be forwarding check anymore. Banks, however, often have rules that allow them to "hold" a deposit for 3 or 4 days before releasing the funds for withdrawal. Many people use the time as "float", writing their checks for more than they have when they know the deposit is coming. This is getting tougher as the process speeds up. I suggest you look for a new financial institution; I am partial to credit unions which generally treat members better than banks treat customers.

Answer 4

Yes, they can do better. It's illegal for them to take 5 (thanks to Pres Clinton) so now most of them do it in 4. It can be done in 30 seconds, but they make money when they hang on to your money. Not that I'm a huge Clinton fan, but I remember when that passed and was so excited! I get a lot of checks.

Answer 5

I find they process mine WAY too quickly. I can mail the payment for my home and it's immediately withdrawn when they receive the check. Now, to pay us...that's the one that takes forever.

Answer 6

Don't worry, in a few years I predict that checks will be a thing of the past.

Answer 7

I know what you mean, and you know it doesn't take the banks that long to get into their accounts either! That's just the craziest thing!
I'm so glad that you finally got it though!

Answer 8

Because checks are made out of paper.

Computers just stare at paper like we stare at cave paintings ...

Answer 9

They SHOULD do better. They know what's in everyone's accounts in matter of seconds, so... I'm glad you finally had your check!

Answer 10

lol...i agree! it should be much quicker.

and why, when you return something to Wal-Mart that they have already electronically debited your checking acc't...give you a gift card when you return something "just in case the check doesn't clear??".