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Comment by joshvm | Hacker News Reader

For ACH, it's the scheduling and batching that makes it slow. The transfer itself should be instant but often my bank sends it out around midnight. This is why Venmo and Zelle are so popular. You can also modify/cancel a bank transfer before it goes through, which is nice.

This is the same in Switzerland. If you request an IBAN transfer, it's never instant. The solution there for fast payments is called TWINT, which works at almost POS terminal (you take a picture of the displayed QR code).

I think BACS is similarly "slow" due to the settlement process.

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These days ACH settlement runs multiple times a day. The biggest source of delay for ACH transfers is your bank delaying release of the funds for risk management. ACH transfers can be reversed even after they have "settled" and if the receiving bank has already disbursed the funds then they have to eat the cost of reimbursing the sender. Reversals are more likely to happen soon after the transfer completes, so delaying release of the funds makes it less likely the bank will be left holding the bag.

> If you request an IBAN transfer, it's never instant.

"In 2024, EU adopted Instant Payment Regulation, aiming to accelerate instant payments in Europe. For EU member states operating in euro it partially took affect in January 2025, for non-euro member states it will partially take affect in January 2027. This regulation includes requirements to send and receive transfers within 10 seconds, as well as to implement the Verification of Payee service."

https://en.wikipedia.org/wiki/Instant_payment

People are almost always talking about Faster Payments [0] rather than BACS. It really is instant.

[0] https://en.m.wikipedia.org/wiki/Faster_Payment_System_(Unite...

Yeah Faster Payments is great, though it's relatively new in the scheme of banking and was explicitly designed to speed up small transfers (though now up to 1M I think?). My point was that the legacy system here is comparable to other countries. And until very recently a lot of companies still used BACS because that's how their payroll was set up.

I definitely miss it in other places I've worked.

I was pleasantly surprised when I bought a house that I could just transfer everything instantly with faster payments. I was fully expecting to deal with CHAPS, etc.

But the faster payments ceiling is large enough that buying a house falls under the limit.

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