Why don't all Banks and Building Societies have Faster Payments

gazzaaaa_2

Faster payments have been introduced for nearly a year now by the major banks but the smaller banks are still not implementing sending faster payments (although they maybe receiving faster payments). Is there any reason (other than profits) as to why they have not implemented this system and/or why they haven't been forced to do so. The Coventry Building Society says that they do not have any technical difficulties sending faster payments they just don't offer this service. Surely this is not right and unfair as they are deliberately delaying payments just because they can!!!!

Regards

Gazzaaaa.

withnell

The banks offering the full fast payment service offer next to no interest on current accounts. if fast payments are important for you, then move to one of them!

There's no legally required method of payment transfer

agsnu

I don't know that it's true that the Coventry and other smaller banks are just choosing not to implement it.

Smaller banks clear funds through bigger banks which have direct access to the settlement networks (Coventry uses HSBC IIRC), and so they're dependent on what the bigger banks provide to them.

The initial priority was to get it up and running for the bigger banks' own customers, which they have really been dragging their heels on (Nationwide don't pay current account interest any more, and still don't support faster payments!), and then they will start opening up more direct access for agency banks and large corporates. Barclays is set to be the first to offer the latter (for corporates) in mid-09. No idea what the situation is for agency banks, but I'd be reasonably surprised if the problem was, in general, on their end rather than the clearing bank end.

gazzaaaa_2

agsnu wrote: »

I don't know that it's true that the Coventry and other smaller banks are just choosing not to implement it.

Smaller banks clear funds through bigger banks which have direct access to the settlement networks (Coventry uses HSBC IIRC), and so they're dependent on what the bigger banks provide to them.

The initial priority was to get it up and running for the bigger banks' own customers, which they have really been dragging their heels on (Nationwide don't pay current account interest any more, and still don't support faster payments!), and then they will start opening up more direct access for agency banks and large corporates. Barclays is set to be the first to offer the latter (for corporates) in mid-09. No idea what the situation is for agency banks, but I'd be reasonably surprised if the problem was, in general, on their end rather than the clearing bank end.

They never mentioned that this was the issue they just said that there was no technical reason for not providing the service, they had just decided not to provide the service, not that there was an issue with other banks not allowing them to provide faster payments. If this was the case why didn't they say so?

Milarky

This article linked to in another thread over in Savings and Investments section

http://news.bbc.co.uk/1/hi/business/7965609.stm

I found this quote from Lloyds particularly unthruthful

Following feedback from our customers, about the online process for making Faster Payments, we took the decision to postpone the switch-on of internet Faster Payments,

"Feedback from our customers" - when the system was working perfectly for two week in July/August last year - who are they kidding? As ever banks, when pressed, fall back on the equivalent of "the cheque's in the post" excuses. The words "brewery", "up" and "pi55" come to mind

Milarky

withnell wrote: »

There's no legally required method of payment transfer

True, but in their 'agreement' with the OFT the banks committed to changing the payments system as a whole to eliminate 'float' (lost days interest to customers) on standing orders. What they have perpetrated on the country instead - by individually not opting in to that system - or just not using it as designed - conveniently side steps that commitment (which did not say that the banks of individual customers had to then use the system they have paid for) But that still amounts to a 'fraud' - because they gave the regulator to believe that float would be eliminated from the system and the regulator had to think they meant the 'banks + APACS ' - otherwise why would the regulator give tacit approval for hoodwinking public expectations?

Basically it seems that the OFT are civil servants (c/f Lord Myners) and as such very easy to mislead. Even today they don't seem overly put out by the shambles individual banks have been allowed to make of their agreement on Faster Payments back in 2005.

Mikeyorks

Agree with you. Except the elimination of float was intended to address all BACS payments (except Direct Credits). Which means that all SOs / bill payments and diarised payments, from the major Banks, should now be routed via FP.

As we know ..... there's a bit of a shortfall on the promise!

gazzaaaa_2

In my opinion the deliberate delay of transfer of funds is a cost or indirectly a charge to the customer and subject to the recent court of appeal judgement banks and building societies are required to trade fairly. Should I be putting in a claim for unfair treatment?

vet8

Thanks Milarky. I was certain that my transfers from Lloyds happened fast for a while, but now they are back to the dark ages of taking nearly a week to move money. I had started to think I had imagined it.

I think it is a total con, they can easily do it if they want to, but this way they make more money.

xyz123

The BBC article says Abbey have signed up for Faster banking..is that true? i thought they actually withdrew from the scheme?

Any abbey customers used faster payments?

G_M

(Nationwide don't pay current account interest any more, and still don't support faster payments!),

Nationwide don't offer Faster Payments to their existing, loyal, customers, but DO offer it for new customers, who get the 07-02-46 sort code.

Open a new Flex account, switch your DDs over, check it all works (incl FPs!), then close your original a/c.