Delayed money transfers are frustrating. In the 21st century, clients expect banks to process financial transactions instantly or within minutes. But sometimes it doesn’t happen. 

Occasionally, hours and even days pass by before the funds are credited to a receiver’s account, disrupting plans of both businesses and individuals. Knowing the causes of such holdups helps to prevent problems and plan more effectively.

So why do bank transfers take so long?

There are several reasons behind that: 

• Transfers depend on cut-off times and time zones. For example, at Bank of America, one must submit a deposit before 10.45 p.m. ET to receive it the same day. We advise checking these details in advance by contacting the support team of a chosen financial institution.
• Another reason is weekends and public holidays. Some banks may provide in-branch services these days, but they do not guarantee transaction processing. When sending international transfers, stay aware of public holidays in the destination country to avoid delays.
• Currency conversion may complicate the request by adding extra steps, especially if multiple intermediaries are involved in handling the payment.
• Errors in account details or missing documents when transferring money abroad often lead to rejections and re-checks.
• Fraud prevention procedures are implemented to ensure the safety of both those sending and receiving funds. However, if a bank suspects that something is wrong, an extra check is introduced, which can be time-consuming.

Tips on how to expedite domestic and international transactions:

• Use digital transfer tools with real-time tracking to see progress.
• Open multi-currency accounts to avoid extra conversion steps.
• Try digital platforms like bivial.com, which speed up cross-border payments and offer top-tier account services for international transfers.

Overall, delays in transfers are common, but most can be avoided with the right tools and a backup plan. Careful planning and understanding how a chosen bank or financial institution operates helps you stay on track when unforeseen circumstances arise.

Frequently Asked Questions

What is a “cut-off time,” and how does it delay my bank transfer?

A cut-off time is the daily deadline set by your bank for processing same-day financial transactions. If you submit a transfer after this specific time, the bank will not begin processing the payment until the start of the next business day. This means that a transfer submitted minutes after the cut-off time can cause a delay of nearly 24 hours.

Why do banks often delay transfers that occur over weekends and public holidays?

Banks typically operate on a business-day schedule, meaning certain critical verification and processing systems are not fully active on weekends or holidays. Even if you submit the money transfer digitally, the funds will often be held until the banking system is fully staffed and running on the next regular business day. When sending international transfers, remember to check public holidays in the destination country as well.

How do fraud prevention procedures cause delays in sending funds?

Banks use automated systems to monitor transactions for unusual activity or large sums that do not match a customer’s typical profile. If the system flags a transfer as potentially fraudulent, it automatically triggers an extra security review by a human compliance officer. This essential fraud prevention step can take hours or days, causing a temporary blockage of the funds.

What is the biggest error people make when sending international bank transfers?

The most common mistake is providing incomplete or incorrect account and routing information for the receiver. Missing documents or typos in account numbers can cause the bank to immediately reject the transaction, which forces the sender to resubmit the request after corrections. This re-checking process can add significant transfer time to the delay.

Does currency conversion always add extra processing time to international payments?

Yes, currency conversion almost always introduces additional processing steps, especially if multiple intermediary banks are used to facilitate the foreign exchange. These intermediaries each have their own cut-off times and processing procedures, all of which add small amounts of time to the overall transfer. Using a multi-currency account is a good way to minimize these conversion steps and possible delays.

Is it a myth that all digital payment platforms offer instant transfer speeds?

Yes, that is a misconception; while many digital platforms boast very fast processing, “instant” typically means within minutes, not seconds. The speed still depends on the banking network involved and whether the sender or receiver’s bank is experiencing high volume or performing a security check. Always check the platform’s stated average transfer speeds.

What should I immediately do if my domestic bank transfer is significantly delayed?

First, check if the delay is related to a missed cut-off time or a weekend/holiday schedule. If not, contact your bank’s support team immediately with the transaction reference number and ask if the transfer was flagged for a security review or if any account details were mismatched. Proactive checking and communication can often resolve the processing delay quickly.

How can utilizing real-time tracking tools help prevent severe delays in my transfers?

Real-time tracking gives you immediate visibility into where your money is in the payment network. If a transfer gets held at an intermediary bank or flagged for review, you will know exactly when the delay happens and can intervene sooner. This proactive knowledge allows you to communicate the holdup quickly to your clients or receivers.

Besides using multi-currency accounts, what is another expert tip for expediting cross-border payments?

Consider using specialized financial platforms like bivial.com that focus specifically on optimizing the flow of funds for international payments. Unlike traditional banks, these focused platforms often have direct integrations or optimized routes that bypass common bottlenecks and limit the number of intermediaries. This specialized approach can shave critical hours off the total time it takes for the funds to arrive.

Why is careful advance planning the most effective long-term strategy for avoiding transfer delays?

Careful planning ensures you understand the operating procedures, cut-off times, and necessary documentation for the financial institutions you use. By knowing your bank’s schedule, you can submit transfers well before deadlines. This careful approach helps you stay on track, even if unforeseen circumstances, like a temporary system hold, arise.