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

Andy_Ches

I can't fault HSBC faster payments service and interest on my current account.

MarkyMarkD

For non-banks like Coventry, there is a definite cost involved in Faster Payments. Their bank will be charging them a premium cost for the service.

So why on earth would they choose to offer it?

It will be interesting to see if any building society starts to offer the service, but at an additional cost. Sensible customers ought to agree to pay, if they are transferring a large enough amount - or simply need the money same day.

Extant

gazzaaaa wrote: »

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?

No. There is no legal requirement for a bank to send your payment by one method or another.

Banks can choose not to offer Faster Payments in the same fashion they can choose not to offer any other product or service - if you don't like your bank's product offerings, move.

BruceyBonus

G_M wrote: »

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.

Someone in a branch (not sure whether it can be believed) that 07-02-46 accounts use a different back-end system i.e. what we see online and what they see in the branch is exactly the same as a 07-01-16 account but account transactions are processed/stored on a different system. They said the 07-01-16 accounts have to be moved over to the new system before they can accept FP.

agsnu

MarkyMarkD wrote: »

For non-banks like Coventry, there is a definite cost involved in Faster Payments. Their bank will be charging them a premium cost for the service.

What makes you say that? Most banks have said they'll charge the same for FP as BACS.

MarkyMarkD

Most banks are charging retail customers the same for FP as for BACS - i.e. nothing. I haven't seen evidence that they are charging corporate customers the same.

E.g. Coutts & Co corporate clients info:

Will I be charged for making a Faster Payment?

The tariff for an Immediate Faster Payment on Bankline is £3. Next day and future dated faster payments are charged at the same rate as the Bankline BACS tariff, which is 25p.

£3 is a lot more than 25p.

I have to say that I don't see the point of "next day" faster payments. :rolleyes:

Bank of Scotland Business Current Account - 25p for BACS (or 8p for bulk BACS) vs 45p for FP.

Just a couple of examples. FP is evidentially an expensive development for the banks and it is not surprising that they are charging for it.

gazzaaaa_2

BarclaysManager wrote: »

No. There is no legal requirement for a bank to send your payment by one method or another.

Banks can choose not to offer Faster Payments in the same fashion they can choose not to offer any other product or service - if you don't like your bank's product offerings, move.

There maybe not legal requirement to offer faster payments but looking at the banking code with respect to clearing
"This service may not be available from all banks and building societies."
I believe it is available to all banks and building societies now so I believe that my building society is in breach of the banking code (which they subscribe to).

I'm not in the mood to make the my building societies job easier so I'll consider leaving this building society once this matter has been resolved but I continue complaining in the meantime if its all the same to you BarclaysManager.

Gazzaaaa

nzseries1

gazzaaaa wrote: »

Surely this is not right and unfair as they are deliberately delaying payments just because they can!!!!

You have answered your own question. They delay payments because they can.

gazzaaaa_2

nzseries1 wrote: »

You have answered your own question. They delay payments because they can.

Nzseries, I may well have answered my own question, but now I'm taking the argument in a different direction. My new question in relation to faster payments is; are they in breach of the banking code with respect to the word available and the description of clearing in the banking code?

http://www.bankingcode.org.uk/pdfdocs/PERSONAL_CODE_2008.PDF

Gazzaaaa.

nzseries1

gazzaaaa wrote: »

Nzseries, I may well have answered my own question, but now I'm taking the argument in a different direction. My new question in relation to faster payments is; are they in breach of the banking code with respect to the word available and the description of clearing in the banking code?

http://www.bankingcode.org.uk/pdfdocs/PERSONAL_CODE_2008.PDF

Gazzaaaa.

I admit I didn't read every single post in the thread I can't help you with your new question but good luck with it and good on you for investigating :T