My company schedules salaries on the 23rd, but if that day is not a working day, funds only appear on the 26th. What happens to the funds during this short delay?
banks only process transactions on business days so on weekends or holydays the funds sit in a pending state until they open. its a secure process that ensures proper clearance
Banks have established practices when it comes to processing transactions that are tied to working days. Even though funds are available at the originating bank, the clearing and settlement network only operates during normal business hours. This means that on weekends or holidays the system isn’t active for batch processing, and funds are essentially held in a staging area until the next operating day. In my experience, it’s simply a matter of ensuring that all regulatory and operational protocols are met to prevent errors or unauthorized transactions.