Why do banks require more time to process refunds than they do purchases?

Asked Dec 1, 2012· 1 answer
Faisal KhanAnswered Dec 1, 2012
Two reasons primarily.

The prime reason is administrative compliance. For a reversal to occur a lot of signature and/or back-end approvals are required to have a transaction reversed. This takes time.

Float. The money is now earning interest with a zero-cost of funds to the bank.

The second reason prevents it from being sped up.
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