Time it takes funds to clear CC Account

aldredd

Hello Everyone,

This is my first post here, but have been reading for a while as a try and get a tighter grip on my finances, which have been somewhat 'unorganized' in the past.

My first post in more a curiosity than anything.

Any 'spare' cash I find myself with, I try and use it to pay off one of my two CCs - mostly the one with a ridiculously high interest rate (btw, not happy that they have just put it up from 29.9 to 34.9 :mad:)

Now, I'm an inpatient person, and like to see things happen immediately - I tend not to buy online as I don't like to wait for things. So, it annoys me that it takes around 3 days for my CC to clear any fund I pay onto it.

The thing I don't understand is why does it take so long for the funds to clear?
The funds leave my current account immediately, but where do they go for 3 days?
If I go into a shop and buy something on my card, I don't have to wait 3 days before I can take it home - that would be ludicrous, and often when I do make an online transaction, my item is dispatched that same day.

So does anyone know the ins and outs of why it take some CC companies several days to clear my funds? For what it's worth, my other CC clears them immediately, so it can be done!

Thanks for your thoughts!

David

BenL

Not including faster payment system.

Simplified version

You press the button today (thursday) 10am
Your bank processes your money outwards about 2am friday
The receiving bank for the credit card company receives the money 2am Monday
Monday or Tuesday the credit card company systems look through the bank account for payments with your credit card number as a reference and applies the payment to your account.

Different IT systems, different internal processes, different agreements with the people they bank with (or part of the bank organisation)

aldredd

Thanks BenL - so basically they're being tight by not paying for a faster payment system?
Figures - and I was wrong actually - it's already 34.9 - they're putting it up to 39.9 soon - shouldn't be allowed - just makes the hard work of paying it all off all that harder :-(