[Deseassaugs]

Like when you “upload” money to a PayPal account from a bank account. Is real hard cash actually ever sent from one bank to another or what?

Example, I linked my bank account to my PayPal account so I could use my PayPal card on the fly without having a balance in the account all the time. I recently paid like $180 or something for some work on my car, PayPal transferred that from my bank account to pay the merchant and I earned 1.5% by using my PayPal card. That worked out to be a little over two and a half dollars that was now credited to my PayPal account. Tonight I bought something from the store and didn’t want to use the $3 cash I had on me so I used my PayPal card. I come home to check my account and it turns out it was four cents MORE then what was in my account from that previous cash back. So, is PayPal going to physically have four cents sent from my bank at some point in time to somewhere else?! Did I mention I earned four cents cash back on tonight’s purchase?

[Beriilosal]

For customers, money moves as a database value. I guess how they actually move money internally is a trade secret in banks.

[YabbaIn]

90% of the money flowing around is just numbers in a computer. 90% of it doesn't exists (in the US and most countries with large centralized banks) Since they loan out 10x more then they have, half the money isn't real.

[gardenerextraordinaire]

Anytime you don't pay with cash, there is no cash involved in the transaction. IE - go and pay with a debit card or check to a store and then your bank will recieve a request for funds transfer from the store's bank. If your bank account has a sufficient balance, the electronic funds are transfered by computer to the company's bank account. It's just a bunch of 1's and 0's flowing from bank to bank.

[Evoncalabbalo]

Federal Bank of NY. 1 of 122 gold compartments.

That's alot of gold... [shocked]

[Giselle]

Federal Bank of NY. 1 of 122 gold compartments.

That's alot of gold... [shocked]

Yup, the world's biggest gold reserve! Remember the Bruce Willis movie?

[kabelshik]

90% of the money flowing around is just numbers in a computer. 90% of it doesn't exists (in the US and most countries with large centralized banks) Since they loan out 10x more then they have, half the money isn't real.

Your mathematical reasoning is impeccable.

[YabbaIn]

Your mathematical reasoning is impeccable.

I know, it was very half assed. I hope you got the jist of it though. I think its called fractional reserve banking. Banks can loan out 10x then what they currently have. Ignore the rest of my nonsense [surrender]

[inhitoemits]

its all done with an electrical hand shake by the servers of each bank then the money is parked whilst the banking systems request permission from each respective account to asertain fundage is avaliable and if not the money is unparked and the handshake is withdrawn.

but this is almost instant so it makes you wonder why it can take upto 5 days for it to appear in your statements I know why its because each respective bank uses your fundage to do a little dabling on the stock market making money before depositing it

cheeky monkeys aye...

[gardenerextraordinaire]

I know, it was very half assed. I hope you got the jist of it though. I think its called fractional reserve banking. Banks can loan out 10x then what they currently have. Ignore the rest of my nonsense [surrender]

Think of it this way, they don't loan out 10x of what they have, rather they must hold in liquid assets, 10 percent of what has been deposited in the bank. The rest of it usually goes into large financial assets (investments) or goes back to other people in the form of loans.

[JonDopl]

Yup, the world's biggest gold reserve! Remember the Bruce Willis movie?

but hardly a jot of the worlds currency is based on actual gold now.