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Originally Posted by nffc
This (clearing) is the biggest con ever and the reason banks won't stop it, is they make a packet out of having it "in limbo" for a few days instead of in accounts where they have to pay interest out.
Different from when it was actually necessary physically (pre-computers) to transfer the money. Most of it IIRC nowadays is done on a computer and obviously the physical cheques need to be redistributed (or do they?) but the money is only "moved" from one PC to another, which in theory is instantaneous but the banks are con merchants.
They deserve a  for it all. |
The clearing con, is the result of batch processing which still takes place for these transactions, end of day one batch file sent to BACS, day 2 BACS process all these batch files consolidate the transactions for each bank and create new files to give to the recieving bank, day 3 recieving bank recieves this file and applies it to the appropriate accounts.
AFAIK, physical cheques are no longer moved about, the location / bank / local clearing area they are deposited in retains the cheque, scans it and processes it as if it were a bacs type payment.
The conmerchants are the ones that intentionally extend these times, Abbey was one of the worst for this.