Loading Profile...
Length of Time for Deposit to Show up in Smarty Pig Account.
ACH transfers take 1 business day, period. I know this because I send and receive ACH transfers every day for my job. I find it troubling that SmartyPig does not credit the transfer to the Smarty Pig account the day it is withdrawn from the funding account, as it should. The only reason I can think of for this is that the owners of Smarty Pig make money on the interest during the extra several days. I can't see any good reason for this delay. "for your security" isn't a good reason, as it is stated in the FAQ's. Also, how does FDIC protection work when those funds haven't been credited to the SmartyPig account after they have been withdrawn from the funding account. This seems like a serious security issue and customer service issue. Thanks for taking my comments seriously.
I’m frustrated
4
people have this question
I have this question, too!
Tell me when someone answers.
The more people who ask this question, the more it gets noticed.
The more people who ask this question, the more it gets noticed.
Create a customer community for your own organization
Plans starting at $19/month
-
Inappropriate?@Nathan,
SmartyPig submits ACH transfers via a third-party payment gateway. ACH transfers at SmartyPig take 3 business days to clear from your bank into your SmartyPig account. Once the funds reach SmartyPig, interest begins to accrue. FDIC coverage starts as soon as the funds reach SmartyPig. SmartyPig generates no revenue until funds have cleared into your SmartyPig account.
For more information, please visit this recent article in the Wall Street Journal:
http://online.wsj.com/article/SB12246...
"In many cases, the receiving bank gets the transfer the same day. Under rules established by Nacha, money that moves on Monday should be available by the end of Tuesday. If the transfer slips to early Tuesday morning, the money should be available first thing Wednesday morning. But the money isn't always available that quickly. Bank of America Corp. says such transfers typically take two to three days. EmigrantDirect says on its Web site that transfers take two to four days, while HSBC Direct says customers should expect transfers to take up to three days. The industry calls this a "three-day good funds model," says David Goeden, an HSBC executive vice president in personal financial services. That is, the bank wants to make sure our funds are good before it lets us have them."
Please let me know if you would like to speak to someone at West Bank (our banking partner) directly. Just send me an email at support(at)smartypig.com with your contact information.
Thank you.
Mike Ferrari, SmartyPig co-founder
The company says
this answers the question
-
Inappropriate?Interesting note from the sames article: "If the transactions take longer than two business days, complain to the bank where the transfer originated. Nacha doesn't regulate how long a bank can hold onto a deposit "pulled" from another bank to be sure the funds are there. But it does have rules, and can assess fines, if funds "pushed" from another bank aren't credited quickly."
I had the same concern last fall, and I recommended they look into or go to the PayPal processor. I can send someone money from my bank account, and they can deposit it into their bank account within 24 hours. If PayPal can move money that fast, any bank can. So what is the big difference? PayPal makes their money on a percentage tagged to the transaction... so despite what they say, someone is making money during that three day hold. If it's not SmartyPig/West bank, it's the processor. The three day hold exists for mainly that reason: making money on the daily interest.
At any rate, since SmartyPig/West Bank pulls the money, there is little recourse except to not do business with them if it bothers you that much. While I completely agree that three business days is far too long and the fact that my money becomes unavailable to me for that long is ridiculous, they still offer a novel service with a decent rate. But it's my hope over time they figure out it is not good business to tie up money that long and either change their practice or find a better processor.
I’m frustrated too
-
Inappropriate?A quick update on this topic.
Effective today, bank ACH transfer times have now been reduced from 3 to 2 business days. Please read more here:
http://blog.smartypig.com/read/reduced-ach-transfer-times
Mike Ferrari, SmartyPig co-founder
EMPLOYEE
