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Why does it take Canadian banks two business days to process bill payments?

In the age of instant payments and transfers, we were asked why it takes banks multiple business days to process bill payments. We're clearing up how transactions work at Canadian institutions.

Producer Anis Heydari delves into the world of automated clearing settlement systems

Modern banking can feel instantaneous, with fast cash and e-transfers. So why does it take some bills two or three business days to get paid? (hedgehog94/Shutterstock)

Money questions abound for Cost of Living listeners.

Wayne Horner from St. Thomas, Ontario, called us with a question about everyday banking transactions. Why, in today's age of instant payments and transfers, does it take banks multiple business days to process bill payments? 

  • The Cost of Living ❤s money — how it makes (or breaks) us.
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"My question is, every time I pay my gas bill on time, the due date. They don't get it to them until three days later, and then I am charged with a late fee," said Horner.

Producer Anis Heydari dove into the world of Canada's automated clearing settlement system with Janet Lalonde, senior director at Payments Canada.


Listen to the segment above  — or download and subscribe to the Cost of Living podcast. 

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