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Nowhere-near-instant ACH payments - by Max Liebeskind

fintechfundamentals.substack.com · 1,913 words · saved by 1 readers

Why the most common payments method in the U.S. can leave you waiting days to access funds

A few weeks ago, a friend who recently opened a Robinhood account asked me a simple question: why does a transfer to Robinhood take five days (give or take a couple) to process? Anyone who works in fintech, payments, or a related area probably has at least an intuitive sense of the answer to this question. Access to Robinhood deposits is not instantaneous in part for mechanical reasons (ACH payments are not processed in real time), but largely because of risks—of insufficient funds, money laundering, fraudulent identity, and other forms of illicit activity—in the underlying transaction.…

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