# Transferring of Money between banks in one working day- why does it take 3 days?



## Luckycharm (9 Jun 2008)

Was speaking to my bank (UB) about getting Top up transferred to my solicitor. I asked them if the solicitor is in a different bank will it take 3 days before he gets the money? 
My bank said no they gaurantee they will get the money in the same working day- so then I asked so why doesn't every EBB take only one day instead of 3- he could not answer me!!!


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## sam h (9 Jun 2008)

> *why does it take 3 days?*


 
Probably so they can earn interest on the millions of euro floating around in cyberspace as they electronically transfer from one bank to another. Pushing buttons takes time....then again, maybe they still walk the cash over from one bank to another (and obviously have a coffee and chat)


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## wheels (9 Jun 2008)

I can't figure this one out either. I got a tenant, who moved over to Ireland from the UK who wanted to transfer funds straight into my account but I had to explain it would take three days etc. He couldn't get his head around it.


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## Mpsox (9 Jun 2008)

I'm assuming your solicitor banks with an another bank. Overnight tonight, UB will send an electronic file to your solicitors bank. The other bank will receive the file tonight/early tomorrow morning but the norm in Irish banks is for banks to do most of their EFT posting overnight, therefore they will not run the file until tomorrow night and it will update your solicitors account on Wednesday

It's an urban myth that banks make a fortune out of this float. UB will exchange value with the other bank for this tomorrow and even though the funds will not be credited to the solicitors bank account until Day 3, most banks actually backdate the interest by a day.

Process is antiquated for the 21st century, however the UK, including NI has started a process 2 weeks ago called faster payments, with same day value being given for interbank electronic transfers. It's not fully rolled out in the North just yet, hopefully if it is sucessful up there, it will make it's way down to us in due course


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## Brussels (9 Jun 2008)

The Banks in Ireland offer a next day value service provided the electronic transfer is made before a cut-off time. This cut-off time is normally early afternoon. Ask your bank for details of the cut-off times.


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## juke (9 Jun 2008)

AIB notified us recenlty that they are charging for same day service


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## Gulliver (9 Jun 2008)

Firstly, the answer is that all banks provide a next-day service up to a certain cut-off time in the day.  This provides delivery by 07.00 (at the latest) the next day.  So if the cut-off time is say 2.00pm, then the delivery time is 17 hours.  If you miss that cut-off time, by say 1 hour, then the delivery time is 16+24 hours = 40 hours.  It is never 3 days (i.e. 72 hours)  (although parts of the transaction may stretch into 3 different calendar days)

In regard to why this happens, and is not instant delivery, the explanation is somewhat complex but is a necessary protection for the banking system and the economy.  The Irish Clearing systems are SIPS (Systemically important payment systems) which means that if they fail, the Irish economy would be in deep trouble.  They are SIPS because of the sheer amount of funds passing through them each day.  If one member bank failed and no rules applied, it is possible that there could be a domino effect bringing down the banking system and the economy very quickly.  And so, the the Committee on Payment and Settlement Systems (CPSS) of the central banks of the G10 countries has set out ten Core Principles. They are authoritative standards for the design and operation of systemically important payment systems in all countries, and are sometimes known in the business as the "ten commandments".  Translated into laymans language they mean (among many other things) that a bank should not release out funds to its customer unless it has received for itself absolutely cleared funds into its own account at the Central Bank.  This clearance between banks only happens currently once per day.  And so everything is dictated by such clearing.

Payments between two customers of the same bank do not have to go through such a process and can be effected almost immediately in most banks

You might ask then, how is it that payments via ATMs are immediate.  Well, ATMs are not SIPS, because the amount which is paid out is tightly controlled.  And so they are not subject to similar rules.


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## wheels (9 Jun 2008)

Gulliver said:


> Firstly, the answer is that all banks provide a next-day service up to a certain cut-off time in the day.  This provides delivery by 07.00 (at the latest) the next day.  So if the cut-off time is say 2.00pm, then the delivery time is 17 hours.  If you miss that cut-off time, by say 1 hour, then the delivery time is 16+24 hours = 40 hours.  It is never 3 days (i.e. 72 hours)  (although parts of the transaction may stretch into 3 different calendar days)



How come sometimes it takes longer then three days? I've never been offered a cut off point or been told that it can be done within 24 hours.


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## Gulliver (9 Jun 2008)

Wheels
My response related to transfers between banks in Ireland, and was based upon the clearing process as it operates following changes about 3 years ago.  Have you asked about the cut-off time or whether it can be done within 24 hours

From your earlier response, it appears that you are referring to transfers between countries operating in different currencies (UK and Ireland).  Under new processes operating since Jan 26th of this year(SEPA day), transfers effected in Euro within Europe should now be more efficient, but until the UK adopts the euro...............


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## wheels (9 Jun 2008)

Gulliver said:


> Wheels
> My response related to transfers between banks in Ireland, and was based upon the clearing process as it operates following changes about 3 years ago.  Have you asked about the cut-off time or whether it can be done within 24 hours
> 
> From your earlier response, it appears that you are referring to transfers between countries operating in different currencies (UK and Ireland).  Under new processes operating since Jan 26th of this year(SEPA day), transfers effected in Euro within Europe should now be more efficient, but until the UK adopts the euro...............



No my tenant was from the UK but had an Irish bank account. The reason I stated where he was from was because he was slightly confused as to why it took so long. In any case I've transferred money its been Irish to Irish so obviously euro and it has always been at least three days if not more. I've always been told it will take three days by the bank. I have known it to take longer though.


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## Luckycharm (10 Jun 2008)

Mpsox said:


> I'm assuming your solicitor banks with an another bank. Overnight tonight, UB will send an electronic file to your solicitors bank. The other bank will receive the file tonight/early tomorrow morning but the norm in Irish banks is for banks to do most of their EFT posting overnight, therefore they will not run the file until tomorrow night and it will update your solicitors account on Wednesday
> 
> It's an urban myth that banks make a fortune out of this float. UB will exchange value with the other bank for this tomorrow and even though the funds will not be credited to the solicitors bank account until Day 3, most banks actually backdate the interest by a day.
> 
> Process is antiquated for the 21st century, however the UK, including NI has started a process 2 weeks ago called faster payments, with same day value being given for interbank electronic transfers. It's not fully rolled out in the North just yet, hopefully if it is sucessful up there, it will make it's way down to us in due course


 
Yes my solicitor is with another bank, they would not transfer the funds until he rang them which was around 10am yesterday. The funds were in his bank account 4pm yesterday -less then a day - they are cleared funds. 
I remember seeing an episode of the Money programme where they showed Sweden where all bank transfer are done within a day regardless of the bank.


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## soy (10 Jun 2008)

There is a much bigger fee for the express (same day) service so there is no incentive for the banks to speed up the regular process, which only costs a few cents


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## fme (18 Jun 2008)

Hi,
I have just transferred money online from halifax to BoI and the Halifax site stated: 
"Please note that if you are making a payment to another financial institution it may take up to 5 business days to reach the recipient."
So it may actually take a week for the recipient to see the money.!
I guess the busy clearing system needs a break for the weekends too...


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## bond-007 (18 Jun 2008)

It takes *10* working days for a cheque to clear with postbank. Talk about a leisurely clearing system.


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## fme (19 Jun 2008)

Just as an update - my money has been transferred and is in the recipient account already less than 24 hrs later, so not too bad.  I guess they are just covering themselves with the 'up to 5 days' thing...


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