BACS. What happens day 2. Clearing day

[Deleted User]

I know that it takes 3 working days for money to transfer from one bank to another via BACS. Day 1 is the actual transfer, day 2 is clearing, day 3 is movement into designated account

Does anyone know what actually happens on clearing day?

Biggles

kittie wrote: »

I know that it takes 3 working days for money to transfer from one bank to another via BACS. Day 1 is the actual transfer, day 2 is clearing, day 3 is movement into designated account

Does anyone know what actually happens on clearing day?

The actual terminology is:-

Day 1: Input day (the day the data is sent to the BACS centre) The actual taking of the money from your bank account is nothing to do with BACS, it's down to each bank's online 'bill payment system' when that happens, some take it on Day 1, others on Day 2, but the money remains with your bank until Day 3;

Day 2: Processing day (files sent to the recipient banks for processing);

Day 3: Entry day (the money is simultaneously debited from your bank and credited to the receiving bank).