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Thread: Banks!!!

  1. #1
    CoffeeSnobs Owner Andy's Avatar
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    Banks!!!

    Gene Cafe Coffee Roaster $850 - Free Beans Free Freight
    Can anyone that works for a bank tell me why it takes so long for them EFT?

    The last payment to hit our account was 21st April because of the Easter and ANZAC day holidays.

    I know that CSrs have paid for items since then but the bank holds onto it until tomorrow, 28th, a full week. Very frustrating for those that had the payments leave their account last week.

    Where are the ACCC when you need them!

  2. #2
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    Re: Banks!!!

    Quote Originally Posted by 537C766B120 link=1303874065/0#0 date=1303874065
    why it takes so long for them EFT?
    Because they can!

    Im sure there is a standard justification they all give that has something to do with security...blah blah blah...

    The bottom line is that they can do it, hold onto your money as long as possible and they are too powerful for anyone to stop.

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    Re: Banks!!!

    Quote Originally Posted by 002F2538410 link=1303874065/0#0 date=1303874065
    Can anyone that works for a bank tell me why it takes so long for them EFT?

    Where are the ACCC when you need them!
    Yes, why does it take so long in this day and age, when they want you to use EFT and not to come into the branch????

    While were on the subject, why is the fee for using another banks ATM so high? About 10cents would be more realistic than the commonly charged $2.

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    Re: Banks!!!

    Talk to your bank manager and ask him what happens to the "lost interest" on the funds from the time the EFT is made to the time it turns up in your account which of course, should be to your account not theirs.

    Been there, done that, and in the end they are like everyone else relying on you to pull them up about it. If you do usually all will be well, and if you dont...........;D !

    So as always, you have to look after yourself or nobody else will. Thats just business and life.


    My understanding the ATM fee goes to the **owner** of the machine and he (the owner) can set whatever fee he likes for someone to make use of it.

    ATMs are great money earners, just ask anyone that owns one eg clubs, pubs and even some eateries. They load the machine with their own cash money, and the fee is their recompense. They then direct anyone trying to place an order under a certain minimum (or even trying to use a credit card for anything over their counter), to their machine to get the cash. This usually goes together with a policy of not taking anything but cash over their own counter. It earns them the ATM transaction fee, plus they dont have to pay credit card fees on their over the counter takings in their normal business.* I can assure you the latter is a very good saving......but in order to do this you (the owner)* have to be prepared to set aside a sizeable amount of your working capital to sit in the machine at all times....and on which you are probably paying interest because you may have drawn it out of your overdraft and are therefore paying overdraft interest in order to have it sitting in the ATM in drawn cash working for you in other ways............

    Hope that helps.


    Rgdz,
    A.

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    Re: Banks!!!

    There was an interview on abc local radio Newcastle There was an interview on abc local radio last Thursday that said the industry was turning eft off over Easter for some reason. It said you could still do an eft and the money would leave your account but the transfer would not.

    I thought it was a local stir up or something but maybe it wasnt

    Im not quoting directly and could be mistaken but that was the general idea I think

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    Re: Banks!!!

    I dont get how if the system is turned off, one part of the transaction can be performed, but the second part cant.

    Im sure that there is a lot of little things like this, which if looked at, might only amount to $1 savings in $10,000 worth of transaction in the banks favour. Magnify that $1 saving over [lets say] $1 billion in transactions, and its another $100,000 profit.

    Money will make men do some very mean spirited things, and brush it under the carpet as Thats Just Business.

  7. #7
    Bean Powered Member jaybee's Avatar
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    Re: Banks!!!

    There is a good reason why EFT isnt instantaneous (I havent worked on banking systems for a few years, but the following is not too far off!)

    Most banking systems were established pre-internet and mega bandwidth & cheap super computers. What they do is to simply debit your account in real-time to ensure you dont over do it then place the other end of the transaction into a batch for processing overnight. That way, all the banks can reconcile with each other via a central intermediatary later on. It saves bandwidth and unnecessary movement of real money which is expensive.

    Most banks can now finish the transaction in real-time if it is between two accounts at that bank.

    With todays technology, it would be possible to do everything in real time, but the pain involved in changing the existing systems would be enormous and costly and for little compettitive advantage.

    Why the systems were down over Easter I can only speculate...

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    Re: Banks!!!


    Quote Originally Posted by 6E414B562F0 link=1303874065/0#0 date=1303874065
    Can anyone that works for a bank tell me why it takes so long for them EFT?
    Andy, I bet most bank staff wouldnt have clue why it takes so long (and that isnt a dig at the staff).

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    Re: Banks!!!

    Quote Originally Posted by 515A42595E5E3B0 link=1303874065/6#6 date=1303912675
    What they do is to simply debit your account in real-time to ensure you dont over do it then place the other end of the transaction into a batch for processing overnight.
    This is my understanding... I work for a credit union, and while Im not in the department that handles direct entry, my understanding is that all outgoing EFT transactions are lumped into a batch file.* So NAB will bundle all outgoing transfers to CBA into a file (and another file to ANZ, and Westpac, and Bendigo etc. etc.), and send it off.* Once received, the file is run by CBA (i.e. the next morning), and funds distributed to the intended recipients account.

    I also know that we offer a "real time transfer" service, which is pushed through manually outside of the above process... at a fee.* These are generally only used for urgent situations at members request, such as required for purchase of a car/house etc.* They can get the funds through within around 15 minutes, but involves a bit of manual involvement to get the funds to their required destination (thus the fee).

    In relation to Easter long weekend, a transfer sent on Thursday would not have been received in account until Wednesday most likely.* If you missed the cut off on Thursday, then it wouldnt even leave the sending FI until yesterday, meaning it may turn up today etc.* This is due to the fact that some manual involvement is still required to oversee the process, handle exceptions etc.

    So, until Aussie banking systems are overhauled, this is the system we live with. And contrary to the opinion of some, it is not done intentionally for the purpose of making a bit of interest on your money!

  10. #10
    CoffeeSnobs Owner Andy's Avatar
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    Re: Banks!!!

    Quote Originally Posted by 73767A7E72797F20170 link=1303874065/8#8 date=1303950357
    If you missed the cut off on Thursday, then it wouldnt even leave the sending FI until yesterday, meaning it may turn up today
    Yep, that is exactly what happened.* Anything after 5pm on the 21st was in limbo till 2am this morning (28th).

    Quote Originally Posted by 73767A7E72797F20170 link=1303874065/8#8 date=1303950357
    This is due to the fact that some manual involvement is still required to oversee the process, handle exceptions etc
    Thats the bit I dont get.* Surely the "exceptions" could sit in a new "manual queue" and all the "clean transactions" could be processed regardless of the day of the week.

    Quote Originally Posted by 73767A7E72797F20170 link=1303874065/8#8 date=1303950357
    it is not done intentionally for the purpose of making a bit of interest on your money!
    ...but its a damn good side effect!* Millions and millions of dollars were in the bank twilight zone for that week and all of that was someone elses money that they didnt have to pay interest on and certainly received interest on.

    I wonder what those figures actually add up to?* I know on my account that translated to about $3... which I wouldnt mind getting from every account in the country.

    Quote Originally Posted by 73767A7E72797F20170 link=1303874065/8#8 date=1303950357
    until Aussie banking systems are overhauled, this is the system we live with.
    Yeah, as mentioned above there is no reason for them to change.

    I remember when you could withdraw from one ATM and then cross the street to another and withdraw again if you needed to get more than your daily limit.* ATMs were "linked" in realtime promptly to fix that... pity the same effort isnt put into EFT.
    ::)

  11. #11
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    Re: Banks!!!

    Quote Originally Posted by 527D776A130 link=1303874065/9#9 date=1303957402
    Damienh7 wrote Yesterday at 10:25am:
    it is not done intentionally for the purpose of making a bit of interest on your money!


    ...but its a damn good side effect!
    Ill take it one step further... I cant see that anyone is earning interest on the funds.* Funds sitting in a banks GL account would not be like sitting in a personal account.* Ultimately, the funds are "in transit" so no-one gets interest, although for the bank, not paying interest is probably just as good as earning interest, you could argue!

    I might have to call one of our Direct Entry staff next week and have a chat, youve got me curious about the exact ins and outs* ;)

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    Re: Banks!!!

    Quote Originally Posted by 696C60646863653A0D0 link=1303874065/10#10 date=1304061593
    Ill take it one step further... I cant see that anyone is earning interest on the funds.* Funds sitting in a banks GL account would not be like sitting in a personal account.* Ultimately, the funds are "in transit" so no-one gets interest, although for the bank, not paying interest is probably just as good as earning interest, you could argue!
    i thought they shifted it through the international money market overnight during these type of "events" the inter-lending between banks etc

    interest (or not paying it) would be being earned somewhere



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    Re: Banks!!!

    Quote Originally Posted by 1F303A275E0 link=1303874065/9#9 date=1303957402
    Yeah, as mentioned above there is no reason for them to change.
    I think that the banks would be happy for there to be less manual involvement required in processing these - as I said in my previous post, I dont believe its possible that anyone is making interest.* Saving on paying interest, yes, but earning interest, no.* Were talking large amounts of money floating around, but you would imagine most EFTs come from a daily transaction account that pays 0.0001% interest anyway, so in the scheme of things, its no great money spinner.

    Any change would require industry wide change essentially overnight.* Its an interaction between different banks and different banking systems.* Thats why its no problem for a transfer within a FI to be instant, but between different banks is a different matter.

    I should add that while I work for a financial institution, again, this is not my area of expertise, so I could be off the mark!* But in general, I dont believe many of the conspiracy theories around the banking industry (and others).

    Just as an example, we gripe about the mega profits of our big banks, but forget that these are massive companies, and in terms of a ROA, the profits arent obscene by any stretch.* And were happy to sit back and be glad that we avoided the full impact of the GFC, which occurred because of poorly regulated and managed financial industry in the US.* I think profitable banks are a necessary evil, though Im aware this may not be a popular view* :)

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    Re: Banks!!!

    Quote Originally Posted by 6D616865656C000 link=1303874065/11#11 date=1304062209
    i thought they shifted it through the international money market overnight during these type of "events" the inter-lending between banks etc

    interest (or not paying it) would be being earned somewhere
    Look, Im not completely sure, but the basic model for banking is they take deposits and pay a small amount of interest on it. They then lend this money back out at a larger interest rate. Historically, this was good enough.

    With more competition in attracting deposits (and getting loan business), the margin between what is paid on deposits, compared to what is charged on loans, has diminished, thus banking fees have gone up over the years.

    Referring back to the simple model, any "left over" deposits that arent being lent out are invested in money markets, simple terms.

    An overnight transfer just wouldnt be possible to be invested for such a short term.

  15. #15
    CoffeeSnobs Owner Andy's Avatar
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    Re: Banks!!!

    Interesting (bad pun) posts Damien, ta.

    Quote Originally Posted by 35303C38343F3966510 link=1303874065/12#12 date=1304062499
    I think profitable banks are a necessary evil
    Sure, I dont mind them making a profit, heck I certainly pay enough fees to be doing my bit.

    My gripe was more about the business hinderance of not having that cash flow for a whole week... and the fact that if I waited for those payments to actually arrive in my account then CSrs would think it was me dropping the ball.

    Instead I sent everything out the first day I could and then hoped that the payments appeared sometime. Of course they did (trustworthy lot around here) but that extra risk was mine when a fairer EFT system would have avoided it.



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