There are two types of transfers between financial institutions. The
one most frequently used for transfers between banks, automatic
deposit of your paycheck or a Social Security benefit, etc., is called
an Electronic Fund Transfer, and takes place through the Automated
Clearing House Network. This type of transfer cannot be made without
prior authorization. According to "Automated Clearing House" at
Wikipedia:
---
Once authorization is acquired, the Originator then creates an ACH
entry to be given to an Originating Depository Financial Institution
(ODFI), which can be any financial institution that does ACH
origination. This ACH entry is then sent to an ACH Operator (usually
the Fed) and is passed on to the Receiving Depository Financial
Institution (RDFI), where the Receiver's account is issued either a
credit or debit, depending on the ACH transaction. The RDFI may,
however, reject the ACH transaction and return it to the ODFI with the
appropriate reason, such as that there were insufficient funds in the
account or that the account holder indicated that the transaction was
unauthorized. An RDFI has a prescribed amount of time in which to
perform returns, ranging from 2 to 60 days from the receipt of the ACH
transaction. However, the majority of transactions, if going to be
returned, are done so within 24 hours from midnight of the day the
RDFI receives the transaction.
---
This return time is probably the reason that the transfer commonly
takes two days.

The second type of transfer is a Wire Transfer. Domestic bank-to-bank
transfers are conducted through the Fedwire system, which uses the
Federal Reserve System and its assignment of routing transit number,
which uniquely identify each bank. One or both institutions involved
may charge a fee for the transfer. See "Wire Transfer" at Wikipedia.

Dave

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On Sep 28, 1:19*pm, Eddie Salade <Baru...[at]gmail.com> wrote:
- quote -

The money during that period are part of the Money Market Mutual Funds.

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Question :

Once you send money from one bank to a different bank,

why is there a two day period where the money is in limbo?

I understand that banks have policies, but is there a way to
find out who is holding the funds?

Bank One claims that the funds are gone and they no longer
have the funds.

Bank Two claims that the funds have not been sent to them.

Can both statements be true, in the sense that neither bank
retains the sent funds?

Next Question:

If one or the other bank IS holding the funds,
is there a way to ascertain who is holding the funds?

Obviously calling the banks has not resulted in any useful information.

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