Why do ACH not process quicker? Is something else faster?

[Dash man]

When I transform Schwab or Ally to USAA, it’s always the next day. If I transfer from Synchrony to USAA it takes at least two days. If I pull the funds using USAA it funds my account instantaneously, but has a maximum of $5,000 per day.
I don’t use Synchrony much anymore.

 

[audreyh1]

When I transform Schwab or Ally to USAA, it’s always the next day. If I transfer from Synchrony to USAA it takes at least two days. If I pull the funds using USAA it funds my account instantaneously, but has a maximum of $5,000 per day.
I don’t use Synchrony much anymore.

I don’t have any such trouble with Synchrony, but then again I always initiate transfers from Fidelity regardless of direction. I always get next day availability.

Unfortunate that USAA limits transfers to $5000 a day. Many credit unions have such restrictions.

 

[Car-Guy]

Mine are done in one day IIRC. I can't remember it ever taking longer unless I initiate the funds transfer on a Friday or holiday.

 

[badatmath]

Still not there. Guess I will call and see.

Seems like a lot of logins/calls and such for something automated. Some day I will be done with the receiving credit union though (need to keep it for now for other reasons).

 

[rk911]

I wouldn't recommend that you use a costly wire transfer just to pay a bill.
It sounds like you are setting up the payment with your bank to make the payment.
I have all my regular monthly bills (except my credit card) set up for autopay with each provider so they pull the payment from my bank each month on a certain date so I never have to worry about it. I resisted autopay for a long time because I liked to control when the bills were paid but after I got a couple of late fees for bills that must have got lost in the mail I decided to automate it for less hassle.
I set the credit card bill up manually on their website so the money gets pulled just a day or 2 before it's due.

We do the same...use ACH for all of our usual monthly bills including our credit cards. We've been using ACH for monthly bills for 20-25 yrs with just one hiccup. That vendor failed to pull the payment and I didn't notice.

 

[Sojourner]

Yes and it has to be a business day, no weekends or Federal holidays.

The whole concept of "business day" seems kind of laughable these days, in our world of 24/7 global Internet and hyper-connectivity. Zelle can transfer money between banks instantly, so why are we stuck with this antiquated ACH system that seems long overdue for a technology refresh? It's hard to believe that in the year 2023, I still have to wait three whole days to access my own money if I initiate an ACH transfer on Friday. Do bank computers get unplugged on Friday evenings and then powered back up Monday morning??

 

[calmloki]

We just funded a property construction loan and discovered that Fidelity didn't charge for a wire transfer vs. $20 for Ally and $30 for Chase AIR. WooHoo! The process was super easy and very efficient - requested at 8:10 in the morning and delivered to the title company at 9:12 AM. Think that one hour order to delivery time is the fastest I've ever experienced.

ACH is our norm for money moving and it seems to be a day to three days - my thinking is it depends on whether the sending and receiving banks are in the same region. Dunno if that's reality based.

https://www.federalreservehistory.o...are decentralized,, Dallas, and San Francisco.

 

[donheff]

So, I just want to know where you can do one of those transfers to an outside account you have never contacted before (on some island) and watch the progress bar cross the screen and voila, completed! I see it all the time on TV. What if I want to get out of town fast some day?

 

[Smitty700]

A speedier replacement for ACH is in the works: FedNow. It's a "a new financial network that would eliminate any wait time for sending and receiving payments." It's now in testing.

Here's an article about FedNow: https://www.computerworld.com/artic...-to-go-live-in-july-hundreds-now-testing.html

 

[Retired Expat]

For many vendors and anything small I use Zelle. It is super fast. Just limited in how much you can send

 

[indiajust]

ACH is a chained series of IOU transfers. Each bank nets out transactions locally, then passes the differences up the food chain. The process repeats till it gets to the fed and then runs back the other way. Its basically how paper checks cleared in the 60's.

 

[Koolau]

I keep telling you all checks are easier even if no one believes me!

I believe.

 

[tenant13]

This is the US problem - not the world’s. I bank in EU and the bank transfers are same day (or instant if you pay extra) plus you can instantly pay/transfer money using phone numbers which most people have linked to their banks. Kind of like Zelle or Venmo.

As with a lot of technology used here, it might have been leading 50 years ago but but it’s outdated and “crumbling” now. I have no clue why we are stuck in the financial Middle Ages but then I also have no clue why our bridges and highways are falling apart.

Blockchain technology makes money transfers instant but it also cuts the middle man (and the fees) out so clearly the pushback from traditional finance is enormous.

 

[Tracer]

Last week at around 8:30 AM, I did 2 ACH transfers out of one of my Fidelity accounts to 2 of my external bank accounts. I was blown away when I found that both transfers were complete with funds fully available at the two bank accounts by 1 PM. Just a few hours later. That's ACH on steroids! I do a fair amount of transfers but NEVER saw one that quick. I had a similar same day result when I did a transfer initiated at Bank of America to another bank. Normally if I initiate an ACH at BofA by 8 PM (Their cutoff time), the funds are in the receiving bank by 9 AM the next morning. To me it seems like ACH transfers are picking up the pace.

 

[badatmath]

I wonder if smaller ACH clear quicker?

 

[Texas Proud]

This is the US problem - not the world’s. I bank in EU and the bank transfers are same day (or instant if you pay extra) plus you can instantly pay/transfer money using phone numbers which most people have linked to their banks. Kind of like Zelle or Venmo.

As with a lot of technology used here, it might have been leading 50 years ago but but it’s outdated and “crumbling” now. I have no clue why we are stuck in the financial Middle Ages but then I also have no clue why our bridges and highways are falling apart.

Blockchain technology makes money transfers instant but it also cuts the middle man (and the fees) out so clearly the pushback from traditional finance is enormous.

But you do NOT have to go through the ACH process... the banks offer the options like Zelle and Venmo...


From a quick search... Zelle is owned and operated by Early Warning Services, LLC, which is co-owned by seven of the nation's big banks.




The difference is what legal protections do you have... I would rather use ACH (and CCs instead of debit) because of the legal protections...


I do not know what protections you have in the EU if someone steals you money, or uses your account without your permission..

 

[Tracer]

A speedier replacement for ACH is in the works: FedNow. It's a "a new financial network that would eliminate any wait time for sending and receiving payments." It's now in testing.

Here's an article about FedNow: https://www.computerworld.com/artic...-to-go-live-in-july-hundreds-now-testing.html

In skimming through the article, it seems FedNow is primarily designed for businesses to receive payment from their customers. It clearly states that it will NOT be a replacement for ACH which is for bank to bank transfers that some of us do from time to time. It also states that unlike ACH, which is free in most cases, there will be a fee to utilize the system.

 

[RE2Boys]

But you do NOT have to go through the ACH process... the banks offer the options like Zelle and Venmo...


From a quick search... Zelle is owned and operated by Early Warning Services, LLC, which is co-owned by seven of the nation's big banks.




The difference is what legal protections do you have... I would rather use ACH (and CCs instead of debit) because of the legal protections...


I do not know what protections you have in the EU if someone steals you money, or uses your account without your permission..

My son had been using Zelle for a couple of years as a college student, but about a year ago the account was hacked for well over thousand $$. The bank made good on the unauthorized withdrawals but for a period of time his account was locked and he had to get a new account and change any auto payments etc. After that experience, I would not trust Venmo security at all, would set up for use with an account with very small balances if necessary. While I move very large sums through ACH, I wouldn't trust Zelle for sums greater that $25

 

[l8_apex]

If you want to do things in a rush, then you probably want to be doing it via wire. What a bank charges to either send or receive a wire will vary, so you may want to shop around. Fidelity charge $0 for a wire (at least for my accounts).

My local banks charge a fee to either send or receive a wire, so I don't do it very often.