My bank's new 'instant' transfer feature took 3 days and cost me $50

I needed to send rent money to my roommate last Friday using my bank's new Zelle-like service they've been pushing. The app said 'funds arrive in minutes' so I sent $800 at 5 PM. Monday morning it was still pending! I called and they said there was a 'security flag' because it was a new payee, but no one told me. I ended up having to pay a $50 late fee to my landlord because the money wasn't there. I learned that 'instant' in banking terms can mean 'whenever we feel like it' if anything looks slightly off. Has anyone else had a transfer get stuck like this with no warning?

2 comments

2 Comments

emmafisher16h ago

Totally feel your pain, and @andrew916 is right about those hidden tripwires. It's so frustrating when they don't warn you before the fee hits.

andrew9161d ago

Yeah that's a classic move from banks these days. Read an article last week about how these "instant" services have tons of hidden tripwires, like sending to a new person or even just a slightly larger amount than usual. They never warn you it might get stuck, they just let it happen. Really feels like the "instant" promise only works when everything is perfectly normal, which it almost never is. Sorry about the late fee, that's the real kicker when their system fails.