Online transactions - why so fast/so slow?

This is only an observation I have noticed in paying some of my online bills, and I was wondering if there is a conspiracy behind it or if anyone else has noticed it?

If I use my Switch or Maestro card, or indeed buy something on my credit card, the money seems to come out of/appear on my account inside about 30min if you check online.

But if I pay bills online, such as my CC, it can take up to 7 days for it to come off my total outstanding balance or to appear on the online account.

I'm thinking its so they can charge asmany people as much interest as possible - am I imagining things?

When I use my LASER card to make a debit card purchase, the money is deducted from my account straight off. If I lodge money to my (same) current account, it usually is there same day or on working day 3. The processes behind each POS debit, and clearing credit, are different and not comparable.

If I use Banking 365 Online, before 5pm, on a working day to make a payment to my credit card, the payment shows in my credit card statement as having been applied the following working day.

7 days seems inaccurate, or unrepresentative.

Paying interest is your CC is a choice, either active or passive. I got my first card in 1986, and have yet to pay any interest.

Well I made a payment to my Virgin CC exactly 7 days ago (admittedly this included a weekend) and its still not in my account.

Also I have a BoI 365online account, with a BoI CC registered on it. Why is it if I transfer money from my current account to the CC account, it comes out of my current balance instantly yet takes up to 3 days to appear on my online CC balance, which is displayed on the same screen as the current account?

If all this stuff is electronic now then it should all be instant. Or if not instant then definitely not 3 days.

Probably the fact that the bank can earn interest on that money. With thousands of transactions like this every day, there's a lot of money to be made on interest for the banks.
1) Banks earn interest on their own money (don't they?),
2) Not paying the pitiful deposit interest to the customer,
3) Charging for the extra few days interest on CC.

Quite a nice earner I reckon. In the past they could use the old 'processing' excuse, but when we have secure international transactions taking a matter of minutes, I fail to see the justification any more.

Pique

You said what I was thinking, exactly.

Pique318 said:

Probably the fact that the bank can earn interest on that money. With thousands of transactions like this every day, there's a lot of money to be made on interest for the banks.
1) Banks earn interest on their own money (don't they?),

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They don't 'earn' interest on money held in their own holding accounts. That's like paying yourself pocket money.

Pique318 said:

2) Not paying the pitiful deposit interest to the customer,

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Key ECB rates are, currently,

Marginal lending facility : 1.75%
Deposits facility : 0.25%

Demand deposit rate is, currently, approx. 1%. Why do you believe that rate is 'pitiful', given the wholesale price of money ?

Pique318 said:

3) Charging for the extra few days interest on CC.

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Pay your bill on time, in accordance with the terms and conditions of the card provider, and you don't pay any interest. I can't speak for Virgin CC. They're not a bank, so they're subject to delays that the main clearing banks are not.

Pique318 said:

Quite a nice earner I reckon.

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Banks are private compaines, with a goal for profit maximisation. Go with the Post Office or a Credit Union if dealing with rapacious capitalists offends your sensibilities .

TarfHead said:

They don't 'earn' interest on money held in their own holding accounts. That's like paying yourself pocket money.

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Banks lend money to other banks overnight on the inter-bank market and earn interest that way from cash deposits.

TarfHead said:

They don't 'earn' interest on money held in their own holding accounts. That's like paying yourself pocket money.

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Fintan answered that one

TarfHead said:

Key ECB rates are, currently,

Marginal lending facility : 1.75%
Deposits facility : 0.25%

Demand deposit rate is, currently, approx. 1%. Why do you believe that rate is 'pitiful', given the wholesale price of money ?

Click to expand...

Well if money is so cheap, try getting a loan for 1% then.

TarfHead said:

Pay your bill on time, in accordance with the terms and conditions of the card provider, and you don't pay any interest. I can't speak for Virgin CC. They're not a bank, so they're subject to delays that the main clearing banks are not.

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Less of the patronising comments, if you will.
If I pay money into a credit card from my online banking it may not get to the CC on time resulting in interest being charged. The 'small print' saying that it 'may' take 3-5 days doesn't justify the fact that neither I, nor my CC, actually HAS that money. the banks do.

TarfHead said:

Banks are private compaines, with a goal for profit maximisation. Go with the Post Office or a Credit Union if dealing with rapacious capitalists offends your sensibilities .

Click to expand...

Oh yet more patronising comments....well done !
So do the PO and CU have instant money transfer and no interest in making profits ? Strange ! I wonder if their chief execs/boards of directors know this ?

Noticed with BOI 365 that if I made a payment to CC on Fri evening the money leaves the account straight away - however on Monday then is shows that the transaction occurs on the Monday!

I fail to see why these are not more instant.