Clearing banks' 3 day scam

IvanOpinion

The difference is that you did not state that you were paying with an IOU that may or may not be honoured.

Ivan

ruthyjo

IvanOpinion wrote:

The difference is that you did not state that you were paying with an IOU that may or may not be honoured.

Ivan

If the op was talking about a bacs payment then such a payment can only be made from funds in their account and will immediately be debited from said account and in the bank's hands (so to speak) until it shows up on the other account, often several working days later.

I don't think they were talking about the cheque clearing cycle. That works against the person receiving money as funds will not be cleared into their account until about 4 working days after they pay the cheque in, although they may show in a notional balance. However it benefits the person who issued the cheque as they will not be debited for about three working days. The bank doesn't really get to see the money for long (only overnight or a bit longer if a weekend intervenes). Also worth noting that timescales can differ - often longer for former building societies or truncated where issuer and recipient of cheque bank with the same institution.

IvanOpinion

I was metaphorically speaking in response to their posting directly above mine. However hopefully the new system due next year will be much better (after all the initial hiccups)

Ivan

ruthyjo

What situation was it a metaphor for?

jimmymac87

Zippy123 wrote:

:mad: :mad: :mad: Goodness you want something for nothing don't you. The banks run your account for no fees save for charging when you go overdrawn - years ago you had to pay 25p per cheque (like £2 now).
The banks offer this free service because they make money by lending yours out.

That's partly true, but the bakns offer this free service because they make money from your money, and money directly from you! They are not just doing it out of the goodness of their hearts - they do it so you borrow money, get into debts, owe them money, take out their other services, insurances etc, and also invest your money