The Internet Banking revolution is here. We’ve all seen the warnings about Internet Banking, but few people would think that their bank might be cheating the system.

Consumers now have more ways than ever before to be able to instantly transfer funds from their bank accounts to pay for goods and services. Internet Banking, and EFTPOS to name a few.

So by now we’re all used to the idea that money can be instantly sent for payment.

Most of us in the Western world live in a 24 Hour 7 day consumer market. In other words we accept that we can purchase goods, and pay for them anytime - right?

Why then do the banks persist in observing weekends when it comes to internet banking transactions?

My explanation - When I transfer money by the Internet from one account with Bank X to another persons account in the same Bank, the money disappears from my account instantly. However this money doesn’t arrive at the other persons account until the next business day.

If this transaction begins on a Friday, then the other party won’t see the funds until the following Monday.
If the process happens on a week-day, the other party still won’t get the funds until the next day.

Question. Why is this?
Answer. Because Banks are Bastards.

Simple really. They get to utilise the money for the period of time between the two accounts.

Clearly the banks have the technology to make the funds tranfer instantly, but they choose not to use them.

Of course when questioned, most banks will tell you the delay is a security feature, or the system doesn’t “roll-over” until midnight.

Internet Banking must be a fantastic part of the business for Banks. They still get to charge fees, but don’t even have to deal with the customer. I love it how they charge us to have access to our own money.

Here’s a great article on the same topic