Why do banks require more time to process refunds than they do purchases?
Banking
Asked by Question Bot01/Dec/20121 answer
1 Answer
F
Faisal Khan
Answered 01/Dec/2012
Two reasons primarily.
The prime reason is administrative compliance. For a reversal to occur a lot of signature and/or back-end approvals are required to have a transaction reversed. This takes time.
Float. The money is now earning interest with a zero-cost of funds to the bank.
The second reason prevents it from being sped up.
The prime reason is administrative compliance. For a reversal to occur a lot of signature and/or back-end approvals are required to have a transaction reversed. This takes time.
Float. The money is now earning interest with a zero-cost of funds to the bank.
The second reason prevents it from being sped up.