Balance Transfer timelines

[nidena]

It's been eons since I last did a BT.  What has been your experience with timelines?  Does it normally take a week for the balance to actually show on the receiving CC?  I think the last time I did one, I used a BT check so once that arrived and was processed by the bank, it was done.  I just don't understand why it takes so long to process a bunch of 1s and 0s.

[Deleted]

I haven't done balance transfers but I can answer the second part of your question. It's called "float". The longer Bank A has between initiating your request and having the money land in Bank B's account, the more time they have to play with it. Similarly, the more time between Bank B's receipt of the money and posting it to your account, the more time they have to charge you interest.

I saw this when I did a tax-free rollover of a large 401(k) after I left a job. The firm holding the 401(k) MAILED a check to me. It was properly written to Fidelity and coded as a tax-free rollover so it was done correctly, but I had to get in the car and deliver it to my nearby Fidelity office. Really?

[mollyc]

My experience has been 3 to 5 business days whether I’ve made the payment online or using a balance transfer “cheque” in bank.

The payments have been put on hold until all parties confirm my paying card has the space to cover the balance.

There may be “float” reasons there I suppose but it’s generally due to the usual processing delays and fraud concerns

[minnesotapaintlady]

Jan 26, 2023 10:30:48 GMT -5 @athena53 said:

I haven't done balance transfers but I can answer the second part of your question. It's called "float". The longer Bank A has between initiating your request and having the money land in Bank B's account, the more time they have to play with it. Similarly, the more time between Bank B's receipt of the money and posting it to your account, the more time they have to charge you interest.

I saw this when I did a tax-free rollover of a large 401(k) after I left a job. The firm holding the 401(k) MAILED a check to me. It was properly written to Fidelity and coded as a tax-free rollover so it was done correctly, but I had to get in the car and deliver it to my nearby Fidelity office. Really?

That would have been a long drive for me.  I don't think there's one within 100 miles of here.

[nidena]

Jan 26, 2023 10:30:48 GMT -5 @athena53 said:

I haven't done balance transfers but I can answer the second part of your question. It's called "float". The longer Bank A has between initiating your request and having the money land in Bank B's account, the more time they have to play with it. Similarly, the more time between Bank B's receipt of the money and posting it to your account, the more time they have to charge you interest.

I saw this when I did a tax-free rollover of a large 401(k) after I left a job. The firm holding the 401(k) MAILED a check to me. It was properly written to Fidelity and coded as a tax-free rollover so it was done correctly, but I had to get in the car and deliver it to my nearby Fidelity office. Really?

Let's hope that's not the case because then I have to mail it to Texas from Indiana.

[Deleted]

Jan 26, 2023 10:51:00 GMT -5 minnesotapaintlady said:

Jan 26, 2023 10:30:48 GMT -5 @athena53 said:

I saw this when I did a tax-free rollover of a large 401(k) after I left a job. The firm holding the 401(k) MAILED a check to me. It was properly written to Fidelity and coded as a tax-free rollover so it was done correctly, but I had to get in the car and deliver it to my nearby Fidelity office. Really?

That would have been a long drive for me.  I don't think there's one within 100 miles of here.

Yeah, I know. The alternative would have been to snail-mail it to the nearest Fidelity office. More float time.

[nidena]

So, I initiated it on Jan 20th and it didn't hit both accounts until Jan 28th...just to close this bookend.

[mollyc]

So 5 business days. Seems rather standard. Glad it’s gone through.