When is a BACS payment cleared?

katyjinny

I have sold an expensive item to a foreign buyer. I am aware of the cash back scams and banks rejecting cheques months after saying they have been cleared. My buyer wants to pay me by a BACS payment. I read a few weeks ago about the legal term used by banks to confirm that funds have cleared but I can't remember what the exact words were. Can anyone help please?

Hintza

As soon as the money is in your account its yours. I use bacs transfers all the time. If it is coming from another bank it normally takes 3-4 days. Knowing the banks in this country I suppose they might add on another day or so for an international payment. Just keep checking your account and post item when the money appears.

hjb123

Yep I normally leave bout a week for BACS. Did you say on your item listing that you accepted BACS?

soolin

I would normally have agreed with Hintza on this as I always consider a BACS payment cleared the day after it hits my account (funds can be withdrawn on the same day by the payee but not once the funds have been shown as close of business). I always try to push bank transfers on my auctions for this very reason.

However, I have become quite concerned reading the current account board on MSE as there have been instances where people have paid by BACS or bank transfers and recalled it several days later even though it had cleared, as they told the bank that they paid the wrong person. As there are people who have managed to recall payments, then that begins to concern me, although of course we don't know all the circumstances of each individual case.

Soo

liuhut

Bacs is only in this country. Are you sure that they are not paying you by Chaps which is same day.

katyjinny

hjb123 wrote:

Yep I normally leave bout a week for BACS. Did you say on your item listing that you accepted BACS?

I didn't say I would accept BACS but the buyer is in Iceland so I asked how they intended to pay and they replied would pay directly to my bank so I assumed BACS. Could be CHAPS then as another reply stated.

Thank you everyone

Mark7799

Minimum I would allow is the working day AFTER the funds have been received and then chevck with your Bank asking what type of payment it is and if it can be recalled by the originator.

bleugh

i'd give it a 4 working days or so, treat it like a cheque

also, ask your bank, record the conversation if necessary (you may need to inform them you are doing this) and / or get it in writing that the payment can not bounce

hjb123

To be honest if I didnt say I would accept that method of payment on my listing then if it was causing me hassle then I wouldnt and would just settle for paypal if that was my main method!

Mikeyorks

All payment methods, bar cash, have the potential of recall / chargeback. But little point losing sleep over all of them, or business will grind to a halt.

BACS (Bankers Automated Clearing System) is as safe as any - witness the multi million transactions from Direct Debit that go through it annually.
It's unlikely to be CHAPS (Clearing House Automated Payment system) as that's much more expensive and a little unwieldy for the individual.

BACS - the money is yours the moment it hits your account - so clear it out if you're concerned? No need to leave it one day - let alone four. It's done its clearing en route and doesn't need any standing time!

In the unlikely event of a chargeback, your Bank should consult you. It's not PayPal or a Credit Card where whim / fancy seem to play a large part. But reversing mechanisms are in place on this (and all other payment channels) - mainly to correct accounting anomalies where the Banks screw up - it does happen!.

M_Thomson

It won't be via BACS or CHAPs as they are both UK based.