Faisal KhanAnswered Jan 2, 2014This is because your bank is processing this via ACH most likely.
Typically most ACH will show/post returns on the 4th day from the date the cheque was processed. That is, on the 4th day they will know 100% if the transactions was posted for returns.
Day 1 is processing
Day 2 is Payer Debit
Day 3 is Payee Credit
Day 4 is Returns Processing (if any).
So for safety, your bank is giving it the 5 days period to be 100% sure the funds have been debited from the Payer's Account. Credit to Payees Account and a day or so for float on the funds.
Typically most ACH will show/post returns on the 4th day from the date the cheque was processed. That is, on the 4th day they will know 100% if the transactions was posted for returns.
Day 1 is processing
Day 2 is Payer Debit
Day 3 is Payee Credit
Day 4 is Returns Processing (if any).
So for safety, your bank is giving it the 5 days period to be 100% sure the funds have been debited from the Payer's Account. Credit to Payees Account and a day or so for float on the funds.