Something I noticed when sending USD from Coinbase to my bank account

[o_e_l_e_o]

Well it has been 4 days now and my Coinbase transfer was probably sent to my bank account. I say probably because I do not know for sure unless I log into my bank account.

Coinbase also do not know for sure, unless they are also able to log in to your bank account to check. Think of the ACH system like mailing some physical cash to someone, via standard non-tracked shipping. The sender, in this case Coinbase, processes your transaction and puts it in the post immediately upon receiving it. Their part is now done, and there is nothing they can do from this point onwards to speed the process up. You now have to wait several days for the postal system/ACH system to deliver your transaction. Coinbase don't know when your transaction arrives - all they know is when they processed it and how long on average these things take.

I guess it is up to me to log in and see what's there?

Yes. The same with any payment or bank transfer. If you transfer money to someone else's bank account, does their bank email you to say the funds have been received?

Again, I have no love for Coinbase, but this has nothing to do with them.

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[countryfree]

Being used to international transfers as I'm banking in a small country, I'm not surprised. Within the SEPA zone, transfers are fast, some banks even proposing same day service at extra cost, but elsewhere, it's quite normal for a transfer to take 2 business days.

[Pipdips]

For some reason, you seem to want Coinbase to be the bad guy here. They aren't.

Let's just say that I am a concerned customer and I am leaving really excellent feedback for their company. Coinbase is now potentially bigger than a lot of big banks in the world. The same thing goes with Binance. They are both simply huge now. All I would expect from Coinbase is a little pop up box confirmation saying Your funds will be transferred in 3 days, would you still like to proceed? Or Your funds of $XXXXX of dollars has been sent and processed, thank you.

[figmentofmyass]

Let's just say that I am a concerned customer and I am leaving really excellent feedback for their company. Coinbase is now potentially bigger than a lot of big banks in the world. The same thing goes with Binance. They are both simply huge now. All I would expect from Coinbase is a little pop up box confirmation saying Your funds will be transferred in 3 days, would you still like to proceed? Or Your funds of $XXXXX of dollars has been sent and processed, thank you.

i don't think they actually know for sure. initiating a withdrawal triggers fraud/due diligence checks which differ on a case-by-case basis. then there are possible delays from the customer's bank (or intermediary banks in the case of wires).

so they give you a time window that indicates the latest time you'll receive it, which seems like the best we can expect. anytime i've confirmed a bank withdrawal from coinbase pro, the confirmation says "coinbase_payout_at: xxxxx" where xxxxx is the latest date the ACH will hit my account. it's always hit my account earlier than that.

doesn't seem like a big deal to me.

[Pipdips]

Today I checked my bank account and I have verified that the funds were finally deposited. The transaction posted as pending in my bank ledger on the day I submitted my order to move funds out of Coinbase, however it did not post for probably the 3 days. I say probably because I did not see an exact date for when my bank received the funds -- it could have been 3 days less or more, I really do not know for sure.

Obviously Coinbase, well, let's just say that Coinbase leaves it's clients in the dark best they can. If you need to argue and defend Coinbase just read this whole topic over again. They leave clients in the dark best the can in the form of little bits and sneaky pieces of darkness here and here. Who knows where the money goes? Nobody. Don't bother asking because Coinbase is like a box of financial chocolates. You just never know what you are going to get.

[astadbtc]

Where have you seen wire transfers processing instantly? It takes 3 days minimum. This is the traditional banking we are speaking about. Who the hell told you it is instant???

There are some countries with systems in place to allow instant transfers. The Single Euro Payments Area (SEPA) are in the process of setting up a European wide payment processor called SEPA Instant Credit Transfer (https://www.europeanpaymentscouncil.eu/what-we-do/sepa-instant-credit-transfer) which should allow instant transfers between accounts at any time of day or night. Whether or not exchanges will start using this is another matter, but it is certainly possible.

Fiat banking systems are generally pretty slow and archaic, but the US banking system is very poor even by those standards. Perhaps the growth of bitcoin might force them to actually modernize a little.

I'd be interested to know which countries have right now these systems you are referring to. SEPA as you are saying is "in the process" of creating an instant wire-transfer processing system, which in banking terms means 2-10 years.
So you are basically saying that their is no system available to process transactions in the same day.

I don't understand why you don't answer my question with a simple yes you are right and you are starting with "There are some countries with systems in place to allow instant transfers."

Which countries are these? Can you go in detail?

[o_e_l_e_o]

I'd be interested to know which countries have right now these systems you are referring to. SEPA as you are saying is "in the process" of creating an instant wire-transfer processing system, which in banking terms means 2-10 years.

Did you look at the link I provided? 50% of payment service providers in Europe are already using this system to make transfers in under 10 seconds right now. They are "in the process" of rolling it out to try to reach 100% adoption.

Which countries are these?

As of right now, there are payment service providers in the following 20 countries using this instant transfer system: Germany, France, Belgium, Netherlands, Luxembourg, Austria, Italy, Spain, Portugal, United Kingdom, Denmark, Sweden, Finland, Estonia, Latvia, Lithuania, Bulgaria, Malta, Cyprus, and Monaco.

[astadbtc]

I'd be interested to know which countries have right now these systems you are referring to. SEPA as you are saying is "in the process" of creating an instant wire-transfer processing system, which in banking terms means 2-10 years.

Did you look at the link I provided?

I don't have to click links and I rarely do. It is your duty to answer in detail since you did jump in the discussion without being asked.
Then again I admit that I was wrong as I didn't believe that EU banks could have adopted so fast and didn't wire-transfer money since 2018. The information you provided was valuable.

[Pipdips]

The banking system we have is a mess of pretty little lies.

Sending fiat from Coinbase into my bank account should be instant and anybody who justifies it is pushing lies. It should be the same speed of going up to an ATM machine to get cash.  The amount of money I withdrew from Coinbase was not a huge amount, and I have never had any suspicious activity on neither my Coinbase or my bank account.  It's almost the year 2020 with drones flying around in the air and we are sending space shuttles to Mars for cripes sake.  The banks should have caught up with the rest of the speediness of the world by now.

[figmentofmyass]

Sending fiat from Coinbase into my bank account should be instant and anybody who justifies it is pushing lies. It should be the same speed of going up to an ATM machine to get cash.

in the USA we're still using the archaic ACH system. that requires settlement of interbank payments. a cash withdrawal from an ATM doesn't require interbank settlement.

The amount of money I withdrew from Coinbase was not a huge amount, and I have never had any suspicious activity on neither my Coinbase or my bank account.  It's almost the year 2020 with drones flying around in the air and we are sending space shuttles to Mars for cripes sake.  The banks should have caught up with the rest of the speediness of the world by now.

isn't that one of the selling points of cryptocurrencies---avoiding banking delays?

in all likelihood, it's the recipient bank (your bank) that's causing the delays, as a matter of risk management against fraud. that's the primary reason coinbase can't guarantee an effective payment date. the recipient bank generally waits out the "settlement period" for an ACH payment before crediting funds to your account. otherwise they are effectively extending you credit if the payment doesn't end up clearing. in other words, your bank is worried that coinbase's bank might be defrauding them and is taking steps to mitigate that. https://www.quora.com/What-is-the-shortest-ACH-debit-settlement-period-that-is-needed-to-avoid-fraud/answer/Faisal-Khan-1

[Pipdips]

Thanks for the info, figment.  It makes better sense now but it is still really SLOW.  My transaction is over with though.