Faster Payment Service

MDD_2

Milarky you are clued up. If my daughter transfers money from her account to my account at the weekend it is there within 2 hours. There is no reason why banks don't do the same apart from the fact that they are blocking the system. Computers are programed to work to instruction.

Olipro

What you don't realise is computers aren't all setup to process payments in realtime.

Far more likely; MBNA's systems will perform batch processing of all payments that have come in at a fixed time each day - I would not be at all surprised if that time was 2-2:30 AM (which is when BACS payments get processed) - generally speaking, it's done like this to avoid having to constantly ensure everything is reconciled as a result of running in real time.

In any case however, if they do accept Faster Payments and, if you have made a payment via FPS which your bank can assure arrived before the bill's deadline, if you were to incur any charge or negative action from MBNA, you would have good grounds to challenge it on the basis of the fact that the money has been physically remitted to them and they simply have not accounted for it.

Joe_Bloggs

Perhaps where the system is lacking is in the area of real time reconciliation . If the sending bank is running short and has no immediate means of replacing the money then the transfer is on the BACS of snails allowing plenty of time to liberate the dosh.
I could be wrong but at least the sentiment is there.
J_B.

MDD_2

Thank You Olipro. The point I raised with MBNA was that the money had gone out of my HSBC bank account, as you say it had been physically remitted. I asked for a trace to be put on the transfer and the gentleman got angry with me over the phone (more to the story). I had arranged a 0% money transfer with the MBNA. The FPA payment I made was to cover a first payment on the money transfer for the supposed due date. I believe that they actually had received the money and as you say they simply have not accounted for it which resulted in me being very harshly penalised.

MDD_2

I may be naive but realtime reconciliation is not someone sitting down with books comparing entries. Banks are more up to date with the latest technology than in the days of pen and ink.

YorkshireBoy

Sort code 08-61-30 belongs to the Co-op Bank, who are not a clearing bank as far as I know.

Maybe it's not down to MBNA after all...if the Co-op aren't passing the payment through until a working day?

Viper_7

MDD there are many rules and SLA's covering faster payments. % of payments which must complete end to end within x number of hours etc. Reality is most real time payments complete within seconds.
There are lots of rules between institutions to prevent fraud amongst other things.

What was your payment type? Was it a direct payment or a standing order?
Who was the sender? (ah HSBC)
Who was the receiver? (08-61-30 is MBNA Europe who indeed here is Co-operative being the receiver)

What is actually the problem? Is it that it left your source account but did not appear in the destination account as planned?
What was the actual message returned to you when you performed the payment instruction?
It's usually (The funds will leave your account immediately, and should reach the receiving account within a few hours)

When did the money hit the receiving account?
You will have been provided with a TRN which can be used to track it.

The payment is not Guaranteed to hit the receiving account within seconds/hours, most of them do. It's faster payments not instantaneous transfer no matter what!

If you want additional guarantee then you should be making a Bacs or Chap payment. (will be a charge)


If you are moving the funds to pay a bill - it will be made clear on the bill that you should allow 3 working days for the money to reach the account.

noh

This was a payment to an MBNA credit card account I assume?

The faster payment would have gone from your HSBC bank account to MBNAs collection account (A Co-op bank account) and would have been credited within 2 hours.

Then as stated on the MBNA website and on the rear of your statement your credit card account would be credited as follows:-

"Faster Payments received Monday to Friday before 4pm will be credited to your account the same business day, after 4pm, or on a weekend/bank holiday, they will be credited to your account the next business day. Payments can be seen on your account the day after being credited. "


The delay in crediting your credit card account is due to MBNAs procedures in reconciling the collection account as Olipro explains above.

noh

YorkshireBoy wrote: »

Sort code 08-61-30 belongs to the Co-op Bank, who are not a clearing bank as far as I know.
...................................................

Oh yes they are!

http://www.chequeandcredit.co.uk/membership/-/page/list_of_members/

MDD_2

YorkshireBoy wrote: »

Sort code 08-61-30 belongs to the Co-op Bank, who are not a clearing bank as far as I know.

Maybe it's not down to MBNA after all...if the Co-op aren't passing the payment through until a working day?

The Co-operative Bank were one of the founding members in May 2008. On the UK Payments website it says,

Members
Faster Payments Service membership is open to credit institutions with a settlement account at the Bank of England, and who can connect their payment system to the central infrastructure 24 hours a day, 7 days a week. Members can send and receive all types of payments processed through the system, although they will decide which payments are provided to their customers.

Single immediate payments are typically those that are made when the customer sends the instruction to their bank via phone or through their internet banking service, and requests the transaction to be made straight away. These types of payment can be made all day, every day.

Can I make a one-off phone/internet Faster Payment:
Co-operative Yes, phone and internet £2,500

So it seems on the face of it that the Co-operative bank transfer the money at weekends. I asked the MBNA to put a trace on the money they refused.