The BACS system is completely unacceptable!!

vortex1150

The recent problems with failed, missing and delayed BACS transfers with regard to KE and Icesave have highlighted what a complete nightmare the system is. People entrust many thousands of pounds to an electronic 'black hole' and most of us have to simply hope and pray it gets to the destination within 4 days or so!!

As far as I can see BACS is little better than stuffing wads of money in an envelope and posting it! Surley in this modern age, we shouldn't have to put up with this??

v

opinions4u

I think that's why they've developed and partially implemented Faster Payments.

Seajays

opinions4u wrote: »

I think that's why they've developed and partially implemented Faster Payments.

If you want to read more about it go here (it launched this year): http://www.fastpayments.co.uk/

Plus here: http://news.bbc.co.uk/1/hi/programmes/moneybox/7417826.stm

Biggles

vortex1150 wrote: »

The recent problems with failed, missing and delayed BACS transfers with regard to KE and Icesave have highlighted what a complete nightmare the system is. People entrust many thousands of pounds to an electronic 'black hole' and most of us have to simply hope and pray it gets to the destination within 4 days or so!!

As far as I can see BACS is little better than stuffing wads of money in an envelope and posting it! Surley in this modern age, we shouldn't have to put up with this??

That's nothing to do with BACS. That's the bank you are using to make a payment, eg KE or IceSave, holding onto the money rather than transmitting it to your own bank a/c via the BACS system. If they end up not transmitting it at all, it will stay with them.

Faster Payments is no better, in that you still have to rely on the bank's internal systems to initiate the payment. But the disadvantage with BACS is that it has to wait until the next transmission date (and if you give your instruction at a weekend, that means Monday night), by which time things may (or may not) have gone pearshaped. With any luck, FP will have sent the money by then......

dougz_2

vortex1150 wrote: »

As far as I can see BACS is little better than stuffing wads of money in an envelope and posting it!

With cash the sender can't claw it back after it has been sent, like can happen with BACS.

nico26

I'm with Hbos and phoned to transfer money to Spain on Monday it was in the bank on Tues lunchtime. Never had any problems. I think the problem was probably KE and icesave not transmitting the money.

Stompa

In the last couple of weeks I've found that BACS transfers in general (even those from non-dodgy banks) have been taking a little longer than usual. I wonder if it's just down to the entire system being overloaded right now?

Trollfever

It is unfair to blame BACS.
The problems arise from the Banks that you have been dealing with.

.

agsnu

dougz wrote: »

With cash the sender can't claw it back after it has been sent, like can happen with BACS.

Defined "sent". With BACS, no money actually changes hands until the third working day. Until that point, the money has not actually changed hands.

YorkshireBoy

agsnu wrote: »

Defined "sent". With BACS, no money actually changes hands until the third working day. Until that point, the money has not actually changed hands.

I think what you are describing is BACS Direct Credit, which is indeed a simultaneous debit/credit on day 3. However, BACS Direct Credit is used primarily by businesses (for such things as wages and salary payments, and bill payments).

For the majority of people on here, and in the context of this thread, we are talking about BACS Transfers (ie standing orders). These operate differently from BACS Direct Credits in that the money does in fact leave the sender's bank on day 1, is passed through clearing to the recipient's bank on day 2, and is then credited to the recipient's account as cleared funds on day 3.

See http://www.apacs.org.uk/resources_publications/faqs/standing_1.html

Biggles

We do seem to be talking about BACS Direct Credits, not SOs, as set up via your online banking and operated by your bank in accordance with your instructions.

As per http://www.apacs.org.uk/resources_publications/faqs/bacs_10.html