Banking industry slush funds

[Robin4]

I have just answered a question from Joel in India querying how long it will take for a guests funds to be released after a reservation request was declined.

Last year I handled this exact question three, sometimes four times a day.
I have a scenario to put:

Airbnb on, lets say, 20th April released $1533.27 to a specific bank account with a certain BSB number and an a/c number ending in 08440....yeah, that's my account! It's not a banking industry slush fund with no specific destination.....it's my account.

As you all know if you buy something using your debit account at any funds terminal on the planet, if the funds are not available in that account the transaction will not go through, in other words there is insufficient money available for the transaction to take place. There is no 'well maybe'  time involved there!

Back to that April 20th release, April 20th was a Friday.....computer networks don't go home for a chat with the kids and dinner at the end of the day but, those funds did not show up as being 'available' in my bank account until the following Thursday.....the 26th.

Now a hypothetical point, what if I had wanted to access those funds that had been released to MY bank account at some stage between the 20th and the 26th. The bank would have charged me a failed transaction fee for attempting to access my own money.

How on any level can that be legal or ethical, but we go along with it, We just let the banking industry play with us and our money. Airbnb goes along with! In the transaction history they just say the funds should show up 10 days down the track.

Isn't this a bit rich......well it is for the banks, what do you think!

Cheers......Rob

[Fred13]

  A 'Failed Transaction Fee" sounds as ruthless a fee that one can imagine, even in a ruthless industry (banking). IF banks actually went through with these, one would think, sooner or later legislature will jump in and slap their hand and hit them with a symbolic fine and stop the practice. Oftentimes they don't.

   The taking of 6 days to post a credit is the most notorious scam banks pull. There is an author (Robert Ringer) who has written many books, in one he said, to never forget that the bricks on banking buildings are glued together with human blood; a brutal description, but one that is hard to forget.

[Robin4]

@Fred13

Obviously if one tried to access those funds that are 'floating somewhere' via a card the transaction would simply be declined, no penalty but, the age of cheque transactions has not totally passed Fred, and if a cheque was presented for cashing, the transaction would be dishonoured resulting in a dishonour fee, even though the funds are there in that account.

Where electronic transactions happen there should be no delay time......unless the banking industry feels they all on such shaky ground that their opposition may fall over at any given moment!

There is currently a royal commission (even more powers than a 'Senate enquiry') into the banking industry and finance sector here in Australia and the head of one of our largest financial institutions has been forced to resign and other high up officials in another of the major banks have fallen on their swords. The corruption on the part of the banking industry we are finding out is breathtaking and we are in for a major shake-up here. With a bit of luck it might reach offshore and have an effect in cleaning up the industry around the world.

http://www.abc.net.au/news/2018-04-20/amp-ceo-craig-meller-steps-down-banking-royal-commission/96791...

I hope you can access this page over there......Bloody long way from Bird Island to the offices of AMP Fred!

Cheers......Rob

[Fred13]

   Fascinating. Yes, there was a recent pass by Congress here on bank charges, and many good changes took place. Now they are on the 'cute' practice of major banks passing their loans off to their 'subsidiaries' and foreclosing on loans that way, and the beat goes on. 

   My last 'association' with banks was bank in 1977 when I worked with Bank of America, a mere 4 months, after getting out of college, after my little 5-year 'vacation' in the military. The lessons learned then have lasted me a lifetime. 😉

[Robin4]

@Fred13

Hey another gripe Fred. My last two reviews were stunningly good but because the reviewers were from Singapore and China, those reviews have been relegated down on page 16 of my reviews.

Most people who look at our listings use English as their first language so why penalise us by putting reviews which are written in perfect english at the bottom of the review pile simply because the person who wrote them comes from outer Mongolia or the Ocovango Delta!

It's midnight....I am going to bed!

Cheers.....Rob

[Jessica-and-Henry0]

@Robin4 @Fred13

I personally hate debit cards because I hate the fact they can immediately take money OUT of my account but it takes forever to RETURN money owed to me for refunds. And "failed transactions fees"?!?!?! - no such thing in Korea so totally unimaginable!!!!