Quote:
Originally Posted by Nerys
It most certainly is not illegal to send cash in the mail. Its just not advisable IE quick way to end up with an empty envelope on the other end.
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I stand corrected.
Quote:
Originally Posted by Nerys
If the banks stated YES we hold the money in limbo for a few days to make some interest on it then FINE its not criminal. Alas this is not what the banks do. They claim its a technical issue that it actually takes this long to transfer money.
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The banks don't claim this to anyone who knows what really happens. I used to work for the
Federal Reserve Board and, generally speaking, bank transfers between member banks are instantaneous. If they don't use Fedwire, they use CHIPS.
However, there is a
charge for such transfers. The way the bank defer the costs of the transfers is by batching them (meaning, if 234 checks for $234k were written on bank A payable to accounts in bank B, bank A makes one transfer for $234k that day, not 234). The other think they do is they utilize float. Float is the delay built into the system where between receipt of goods and payment thereof. Float for checks is anywhere from 1-4 days or so. For credit cards, it's 15-45 days.
Since financial institutions don't exist for the benefit of mankind (hint: they exist for the benefit of the stockholders, just like every
business), they're going to try to make a profit. Some people, think of it as "you're entitled to a profit." One way they can profit is through float. Float on a $200 or even $2000 check is negligible, so it's not something consumers focus on.
However, banks use their
you know what? never mind. Economies of scale. Please, start your own alternative banking system and get back to me in, oh, a few years.
Quote:
Originally Posted by Nerys
bunch of other free advice, take at face value
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I believe all economic activity involves a level of trust. Someone has to take the first step of saying, "OK, I trust you to deliver the goods/money in exchange for the money/goods." It's literally boils down to children's deals where the goods literally have to change hands simultaneously.
Nota bene: obviously all the content in my post is also offered free of charge and thus not intrinsically any more or less valuable. If you want advice specific to your situation and wish to consult with me, I am happy to accept money (PayPal OK!) for advice into which I will obviously put much more time and effort.
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