Are we protected? Bacs via internet banking

njtkc

Saw a news programme recently, lady accidentally paid money into wrong account and can't get it back she only had the a/c and sort code .......... I pay a lot of suppliers by internet banking and bacs, I double check the details before i input them which I normally receive in writing from the supplier but today I asked for them over the phone, thought I would check with the bank that the details were correct and if I paid money into these details I quoted "sort code a/c no" and asked or confirmation that the money I paid into it would be for the benefit of " the suppliers name". The bank said they couldn't confirm if the details were correct 'under the data protection act' I wasn't asking for confidential information just confirmation that my money would benefit the correct company. she wouldn't answer only said" we only use the a/c no and sort code anyway the name is not used????. Then I asked if the details were incorrect then who would be responsible for getting my money back? she said "it is my responsibility to ensure they are correct and if the money did get into the wrong account they would help me negotitate with the receiver to get it back" but not guaranteed. How can I check that money I pay goes into the correct account. IT SEEMS THAT A GOOD OLD CHEQUE CROSSED A/C PAYEE IS THE ONLY GUARANTEED WAY TO PAY SOME ONE YOU CAN'T VISIT. AND KEEP THE POSTMEN IN WORK TOO..........

Lokolo

What happens when postman go on strike or the cheque gets lost in the post?

Its the same thing.

BACS is perfectly fine as long as people double check what they've typed

rb10

If you make an error when typing in either the sort code or account number, and put, say, one digit in incorrectly, then the chance of there actually being an account corresponding to that number is either zero or tiny.

This is because of the way account numbers are allocated, they don't just start at 00000001 and work up to 99999999, but instead use 'check digits' to protect you from this exact case.

So by far the most likely scenario if you get it wrong is that the money will leave your account, and then reappear a few days later when the receiving bank rejects the payment.

If the piece in the news that you saw is the same as the one I saw, then that actually is about a lady who saved someone's account details on her internet banking, then clicked to make a payment to them when she meant to make it to someone else. That is a completely different issue.

crazyman50000

I've done a similar thing

Here are the full account details I was trying to transfer to - a Coventry BS account hence the 9 digit A/C number (fake obvs but so you get the idea)

Name : MR B Willis
Account number 012345678
Sort code 01-23-45

Here's the proper account details I should have entered (omitting the first 0)

Name : MR B Willis
Account number 12345678
Sort code 01-23-45

And I sent it to (so the wrong details) - omitting the last digit

Name : MR B Willis
Account number 01234567
Sort code 01-23-45

Is it likely the money will be returned or do Coventry A/C numbers potentially start with 00?

Not like this was a few quid, it was £550 so more than a pack of mints

My main concern is, if someone's full details were

Name : MR A Cartwright
Account number 001234567
Sort code 01-23-45

So when you drop the 0 off that account it actually matches the details I entered wrong - but the account could exist, but just the name doesn't match.

Really don't wanna lose this cash as Im a student

withnell

crazyman50000 wrote: »

Really don't wanna lose this cash as Im a student

Ring them up ASAP and let them know - there may be something they can do as the transfer may count as being into a holding account

crazyman50000

Called HSBC they say the transfer's already taken place and that it can't be recalled

Called and went to Coventry. They say the transfer should've taken 3 hours to transfer but have no record of it in my account nor in a suspended or holding account

Any ideas?

Lokolo

Yes unfortunately HSBC are a too good bank to be with and have the latest technology shizzle with their accounts so its FPS.

Ok did you ask Coventry if the account number exists with the sort code? If not it should bounce back to your account soonish.

I'm sure they'd say if it existed or not

crazyman50000

I didn't but they said in the branch they expected the payment to bounce.

Saying that, wouldn't hurt to check =\

Extant

Lokolo wrote: »

Yes unfortunately HSBC are a too good bank to be with and have the latest technology shizzle with their accounts so its FPS.

Ok did you ask Coventry if the account number exists with the sort code? If not it should bounce back to your account soonish.

I'm sure they'd say if it existed or not

Just use this: http://www.postcodeanywhere.co.uk/demos/bankvalidator.aspx

If it went by Faster Payments, however, the payment should bounce back near enough instantaneously if the destination doesn't exist.

So_Sad_Angel

njtkc wrote: »

IT SEEMS THAT A GOOD OLD CHEQUE CROSSED A/C PAYEE IS THE ONLY GUARANTEED WAY TO PAY SOME ONE YOU CAN'T VISIT. AND KEEP THE POSTMEN IN WORK TOO..........

Ahhh but you see the Banks don`t want us to do that !!...why? because it costs THEM too much to transact cheques.

I agree though...any doubt on beneficiary details...send cheque `a/c payee` of course.

jamesd

njtkc wrote: »

I quoted "sort code a/c no" and asked or confirmation that the money I paid into it would be for the benefit of " the suppliers name". The bank said they couldn't confirm if the details were correct 'under the data protection act' I wasn't asking for confidential information just confirmation that my money would benefit the correct company.

The fact that the account exists is confidential information. That it belongs to a particular person is confidential information. You were asking for confidential information. To see why, consider the potential for strife in divorce situations or for fraud if it was easy to check that accounts exist with the details gathered to perpetrate the fraud.

njtkc wrote: »

How can I check that money I pay goes into the correct account.

If possible with your account you can pay using the BIC and IBAN. The IBAN has a check digit that will detect common mistakes and prevent the payment from being acceptable.

Unfortunately the traditional UK banking system lacks this modern protection against mistakes.