What does the term "float of their funds" refer to regarding convenience users?

The term "float of their funds" refers to the period during which a user has access to their available funds without having to make immediate payment for transactions. This is particularly relevant for convenience users, who often manage their cash flow by using funds that are not yet formally deducted from their account balance.

When convenience users make a purchase or payment, there may be a delay before those funds are actually withdrawn from their account. During this delay, they essentially have the "float," allowing them to utilize those funds in the interim without facing any negative repercussions, such as overdrafts. This characteristic can be particularly advantageous for managing day-to-day expenses, enabling users to take advantage of the time between transaction initiation and fund settlement.

Understanding the concept of float is essential for recognizing how it impacts cash flow management and overall financial strategy for users who prefer the convenience of quick transactions without immediate payment.