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Faster Payments and 'non banking' days
Milarky
Posts: 6,356 Forumite
I've just discovered (but should have known all along, really) that Faster Payments to and from Tesco (savings) accounts are processed on a different basis to when the payments are actually received/leave the account(s).
They have a processing cut-off time of 6.30 (18.30) each 'banking day'. Of course, being part of Faster Payments (and, uniquely for a 'savings' account) they can still 'physically' receive or send payment at any time and any day of the week.
The issue seems to arise because banks only traditionally (and by law) have to 'settle' on a 'banking day' basis, whilst Faster Payments is designed to 'move' money 24/7.
Should this be a problem?
Probably not, because there is no inherent 'need' to transfer money and settle accounts outside the working week - so customers should never be practically disadvantaged by the restrictions. [I'm thinking of credit cards which set Sunday as the 'due date' as a possible exception there, but if you've sent the money FP on a Sunday and they have recieved it the operation of the banking settlement scheme is not the question - the settlement terms and conditions on the card are]
They have a processing cut-off time of 6.30 (18.30) each 'banking day'. Of course, being part of Faster Payments (and, uniquely for a 'savings' account) they can still 'physically' receive or send payment at any time and any day of the week.
The issue seems to arise because banks only traditionally (and by law) have to 'settle' on a 'banking day' basis, whilst Faster Payments is designed to 'move' money 24/7.
Should this be a problem?
Probably not, because there is no inherent 'need' to transfer money and settle accounts outside the working week - so customers should never be practically disadvantaged by the restrictions. [I'm thinking of credit cards which set Sunday as the 'due date' as a possible exception there, but if you've sent the money FP on a Sunday and they have recieved it the operation of the banking settlement scheme is not the question - the settlement terms and conditions on the card are]
.....under construction.... COVID is a [discontinued] scam
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