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[–] 132 points 3 weeks ago (22 children)

Not to defend corporations and banks, but it’s kinda true. When you swipe your debit card, your bank allocates those funds for that transaction, but whoever you’re paying doesn’t actually have it yet, and your bank hasn’t sent it yet. That’s just the way the banking system works. It can take days for them to actually get your money, depending on weekends, holidays, etc. When you request a refund, the process just goes in reverse.

Think of it like a check. If I write a check and give it to someone, I write the amount in the check register as if it’s spent, but until that person takes my check to the bank, they don’t actually have the money yet.

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  • [–] 38 points 3 weeks ago* (5 children)

    I’ve worked for multiple different financial institutions. I’ve been on the banker side and the consumer side of the industry and I can assure you banks absolutely do have the ability to send your money back instantly.

    While there are certain federal and international laws that could impact transfer times, this is rare and not something your average Joe would run into.

    Most banks want to hold onto your money for as long as possible because that’s how they earn their money. And banks aren’t the only ones who do this. Companies will hold out on issuing refunds for the same reason.

    It’s sort of the perfect way to show the penny savings example I guess. Because yeah, the interested earned is pennies, but when you have a million pennies earning another million pennies… it adds up.

    [EDITED: to changed an autocorrect from warned to earned]

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  • [–] 6 points 3 weeks ago (1 child)

    I can assure you banks absolutely do have the ability to send your money back instantly.

    USAA does this for certain refunds, but they take on a bit of risk to do so. They make the funds available to spend before they've actually been settled

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  • [–] 5 points 3 weeks ago

    I deposited a large check once — nothing that would get the attention of the IRS or anything, other than that I’m normally poor — to a regular national bank. They held it for about two weeks to “verify” it, aka invest and profit off it, so I immediately went over to the local credit union (who doesn’t do shit like that) and opened an account there. Got a good chunk of it transferred with little-to-no fuss and closed out my bank account with a middle finger.

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  • [–] 4 points 3 weeks ago (1 child)

    In Europe there's a system called SEPA, which is a network that allows instant transfer of funds. Right now, by law, banks are required to allow consumers to use SEPA at the same conditions as the regular old bank transfer, which means I could send you money right now for free and you could receive it instantly anywhere in the EU.

    The technology exists. Banks just have no incentive on implementing it

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