Transaction processing time


Asset transfers are only instant when there is no intermediary party involved, be it human- (e.g., an agent), entity- (e.g. a bank), technology protocol (e.g., blockchain), or a combination of the above (e.g., e-money service) intermediary. An example of an instant transaction without an intermediary is cash physically given by one person to another.

Virtually any other transaction type involves intermediaries, and therefore requires transaction processing, which takes time. The time in turn varies depending on protocols used. This is totally applicable to fiat- and crypto transactions related to products and services of Exscudo.

This article explains key factors that affect transaction processing time, and provides estimated minimums and maximums for Exscudo-related crypto and fiat transactions.

Related products

There are the following Exscudo products and services that support crypto- and fiat transfers:

Transfer types

Exscudo related transactions can be segmented by:

  • Currency: fiat or crypto;
  • Direction: deposits or withdrawals;
  • Wallet location: internal (Exscudo wallet-Exscudo wallet) or external (Exscudo wallet-outer wallet / outer wallet-Exscudo wallet).

Therefore, there are the following transaction types available:

  1. Internal fiat or crypto deposits and withdrawals;
  2. External fiat deposits and withdrawals;
  3. External crypto deposits and withdrawals.

Every transaction type has its own set of factors that influence processing time.

1. Internal fiat or crypto deposits and withdrawals

Transactions inside Exscudo ecosystem (referred to as internal), regarless of transferred asset, or the direction of transfer (made possible by colored coins technology), are transactions between two Exscudo wallets that are solely processed on the transport of EON blockchain.

The process behing transferring assets on EON blockchain is quite typical for blockchain transactions (e.g. BTC) and requires a number of confirmations to be completed. Our consensus mechanism (PoS, Proof-of-Stake) allows confirming fast, while transaction processing time is 3-6 minutes.

TRANSPORT

TIME ESTIMATE

EON blockchain

3-6 minutes

2. External fiat deposits and withdrawals

Unlike above described internal transfers, external ones get processed in two stages:

  1. Transaction on EON blockchain;
  2. Bank transaction.

EON blockchain transaction mechanism here and further on is no different from that described above, and takes 3-6 minutes.

Bank transactions are executed via the following protocols:

  • SEPA (Single Euro Payments Area);
  • SWIFT (Society for Worldwide Interbank Financial Telecommunication);
  • Bank card transfers.

SEPA

Usually, SEPA transfers take from a couple of hours to 1-2 business days to arrive in the beneficiary’s bank account. In most cases, the money appears the next business day.

SWIFT

Generally, SWIFT transfers also take from a couple of hours to 1-2 business days.

Bank card transfers

These in their essence are regular bank wire transfers involving acquirers, - the financial institutions that process card payments.

Just like SEPA, and SWIFT transfers, time estimate here is a couple of hours to 1-2 business days.

TRANSPORT

TIME ESTIMATE, [on business days]

EON blockchain

3-6 minutes

SEPA / SWIFT / Bank cards

2-48 hours

The direction of transfer only impacts the sequence these stages are completed in: the sequence of a deposit to an Exscudo account is bank → EON blockchain, while the one for withdrawal is the opposite, EON blockchain → bank. Time estimates are not affected.

3. External crypto deposits and withdrawals

Just like the above described fiat transactions, external crypto transactions (deposits or withdrawals) progress through two stages to be completed:

  1. Transaction on EON blockchain;
  2. Transaction on source cryptocurrency blockchain.

EON blockchain processing takes 3-6 minutes.

For transactions on source cryptocurrency blockchain, examples below present three of the most popular blockchains with explanations on their respective processing, and time estimates.

BTC

Transaction processing here, just like that of EON blockchain, progresses through a number of confirmations to be completed. Confirmations are generated when a block of the BTC chain is created. A block is created about every 10 minutes through the mining process, and so a confirmation usually takes up to 10 minutes. But, since one confirmation is not enough to be confident about the validity of the transaction, users have to wait for new blocks to be created and verify the transaction.

The exact number of confirmations depends on the receiving service (e.g., an exchange) that defines how many confirmations are required to consider BTC received and usually is between 2 and 6. For instance, Exscudo wallets require 3 confirmations when BTC is deposited to them.

Bitcoin blockchain is the oldest, and one of the slowest out there, plus processing time greatly varies depending on how loaded BTC network is at the moment. Under moderate network load, it usually takes ~30 minutes for a transaction to be processed. When the load is heavy, it may take several hours.

Worst case scenario may result in transaction processing time of 10-12 hours.

ETH

Ethereum transactions are processed in a similar way: blocks, and confirmations. The rules are different though, while a block is mined much faster, which results in reduced processing time.

It takes 6-30 minutes under regular circumstances, and up to an hour - when the network is congested.

USDT

Same drill here, but the process is slower than ETH, more like BTC in terms of time required.

For USDT, it is usually 30 minutes to an hour.

TRANSPORT

TIME ESTIMATE

EON blockchain

3-6 minutes

BTC blockchain

0.5-12 hours

ETH blockchain

6-30 minutes

USDT blockchain

0.5-1 hour

The direction of transfer only impacts the sequence these stages are completed in: the sequence of a deposit to an Exscudo account is currency blockchain → EON blockchain, while the one for withdrawal is the opposite, EON blockchain → currency blockchain. Time estimates are not affected.

Additional factors

There are additional factors that may affect overall processing time, such as security/compliance policies implemented at both sender and recepient ends, or lack of KYC verification.

Security / compliance policies

Such policies are applied by Exscudo, and may be applied by services you send/receive crypto or fiat from. They are aimed at preventing:

  1. Theft of funds as a result of unauthorized access to one’s wallet / account;
  2. AML/CFT violations.

Fiat-related policies are generally stricter than crypto-related ones.

Generally, any suspicion is likely to result in transaction being put on hold, and sent to a security/compliance officer for review.

When this happens, it is business days when decisions are made. It takes some time to review each case, plus it may take additional information requested from sender/recepient to make a decision. The latter case makes processing time titally dependant on how cooperative sender/recepient is.

Usually, a check takes from 30 minutes to a couple of hours on business days. Worst case scenarios can make it several days.

Lack of KYC verification

KYC verification is designed in a way, where every subsequent verification step raises deposit / withdrawal limits for a user account. Therefore, it is possible that these limits may be exceeded by a single deposit / withdrawal transaction.

It is a particular case of effects caused by effective compliance policy, and is resolved in a similar way, including processing time totally dependant on how cooperative sender/recepient is.

Once KYC compliance is achieved, the limits are raised, and the transaction gets unblocked.

Summary

TRANSACTION TYPE

TIME ESTIMATE

Internal

3-6 minutes

External fiat

2-48 hours

External crypto

10 minutes - 12 hours

This aggregated table does not apply to delays that may be caused by reasons described in Additional factors section.