Where does the money go?

[jean2579]

I am sure that most posters in here, apart from me, will know the answer, but here goes!

On Thursday I used BPay from my bank account to pay some bills. Now the money left my account immediately, it is now Tuesday and it still has not reached the accounts of the people it was intended for. That is 4 days somewhere. I called the bank and they said that it was because of Easter and it will show in the receivers accounts tomorrow.

So the question is, what happens to the money for those 4 days, I am not getting interest on it, the receipients are not getting interest, where is it?

[icyfroth]

maybe floats around in Cyberspace?

No it probably sits in an interim account until the little bots are reactivated after the holidays and it all gets allocated to the receiving accounts.

[purple_haize]

You have to make allowances for the Easter break.

[imastawka]

Haven't you noticed that when you pay by Bpay, even when you select

'pay today'  it still takes two days for the bill to be paid?

Bpay is a company - keeping your money for 2 days is how they make money.

BPAY is a registered trading name of BPAY Pty Ltd, a wholly owned subsidiary of CardLink Services Limited. CardLink is owned equally by Australia's four major banks.

http://en.wikipedia.org/wiki/BPAY

[serendipityricho · Accepted solution]

Jean--some gurus in the banks back room-play the futures market after banking hours.

This makes more profit for the banks.

Sometimes this practice -miscues.

Refer to--Nick Leeson-Barings Bank............................Richo.

[polksaladallie]

Have you not heard of the short-term money market?   That's where all your money goes on the way to somewhere else.

[freshwater-2]

Yep.   And the interest is raked in by your bank.

Hundreds  of thousands of individual  transactions on the overnight money market.

The only exception seems to be if both the sender and receiver are with the same bank.