I need to vent about this, it's been bothering me for a while now.
In July I applied for online banking, paying bills was consuming a big chunk of free time and I needed to consolidate it. Anyways I've been using it for the last couple of months now and I've noticed something which IMO is a scam. Here is an example to help everyone understand.
1. On January 1st I request a bill to be paid in the amount of $1000.
2. The bank will immediately remove that sum ($1000) from my account on January 1st.
3. 3 -4 Days Later (January 4th) the payment arrives to it's destination.
Does anyone see anything wrong with this.
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Let me explain further. I called my bank and asked them how they made payments after I've requested a payment. Their response "We wire transfer the money". So why the hell do they need to remove the cash from my account 4 days prior!!!
Technically they can take this cash and add it to their general account for 4 days and make a % of profit on it before payment. You may not consider this to be a "Big Deal" but when you consider the sums of money trading hands this is a huge moneymaker IMO. On top of this they have the audacity to charge for online banking.
Am I wrong? Can someone explain if this thinking is incorrect or do I have a good point here. I'm not a banker so set me straight if you have to.