“For example, if John Doe wishes to pay a bill, he would initiate the transaction as he normally would through an end-user platform like his banking app. John’s bank would then send the request to the Federal Reserve, which would notify the recipient’s bank that funds are about to be transferred and would give the go-ahead to John’s bank to release the funds. The Federal Reserve would then take the funds from John’s bank and deposit them in the recipient’s bank. This would all happen in the span of six seconds.”
But if John Doe gets a paycheck or any other check his bank will still hold it for ten to fourteen days just because they can. The Fed has no plans to fix this.
Seriously???? If you look at their site, they have a list of banks already on board.
This is **stupid**.
WELLS FARGO IN SMALL N NEVADA town tried to HOLD an insurance check on an accident payout....
MAJOR AUTO INSURER...
They tried to tell my neighbor they were going to hold his $14,000 check for 10 days-—”to make sure it will clear the other back”.
He very sharply told the teller-—IT IS DRAWN ON A WELLS FARGO BANK-——— She stuttered & gave him the cash.