Sneaky Lloyds to Egg SLOWER payments

ikr2

I have an Egg mastercard that gives 1% cash back.

I have a DD set up for the minimum but usually pay off th erest of the balance manually via internet banking from Lloyds.

These payments usually go via Faster Payments but last month it took 3 days to show up so I have been stung for £15 interest. No late charge as they took the minimum by DD on the same day.

Looking at my statement its a BACS payment not FP as usual. Delving deeper I find that there is a £1000 daily limit on FP. As my payment was over £1000 it went via a slower BACS and that's why I was caught out.

I'm calling EGG to change my DD to paying off the full balance but is there any point in kicking up a fuss to get my £15 charge waived?

To my mind, these inconsistencies in FP mean that I will always allow the 4 days for BACS to go through in the future - which negates the point of having the FP system in the first place!

mr_fishbulb

If you set up a direct debit card then you can make a payment to Egg when logged into their internet banking. Then you don't need to worry about how long it's going to take when sending it from your bank.

Lokolo

FPS isn't gaurenteed and you have found out there is a £1k limit, so it's not their fault you didn't account for this.

agrinnall

ikr2 wrote: »

I have an Egg mastercard that gives 1% cash back.

I have a DD set up for the minimum but usually pay off th erest of the balance manually via internet banking from Lloyds.

These payments usually go via Faster Payments but last month it took 3 days to show up so I have been stung for £15 interest. No late charge as they took the minimum by DD on the same day.

Looking at my statement its a BACS payment not FP as usual. Delving deeper I find that there is a £1000 daily limit on FP. As my payment was over £1000 it went via a slower BACS and that's why I was caught out.

I'm calling EGG to change my DD to paying off the full balance but is there any point in kicking up a fuss to get my £15 charge waived?

To my mind, these inconsistencies in FP mean that I will always allow the 4 days for BACS to go through in the future - which negates the point of having the FP system in the first place!

I'm not sure that you're right but it's a bit difficult to be certain. From this list http://www.chapsco.co.uk/faster_payments/-/page/fpslimits/ Lloyds have a FP limit of £20,000, the highest of any of the banks at the moment. EGG are listed as an agency bank so I'd guess they do accept FP inward payments. Their FP help page http://new.egg.com/visitor/0,,3_106568--View_2265,00.html does say that FP can be used for credit card payments but doesn't give any limit on the value.

However, relying on FP is not really a good move, it's not a guaranteed payment as there are technical reasons why either the sending or recieving bank may not be able to process a payment leaving BACS as the alternative. Your change to full amount DD is a much better idea, although you'll of course still have to remember to have the money in the account by the DD deadline given by EGG, which may be the day before the DD is taken.

pinkdalek

Faster payment is not always guaranteed method, depsite the limits how are you to know that on that particular day the system is down for example.

Best way to pay is direct debit, the onus is then on the company to collect the funds, you are also covered by a direct debit guarantee.

The other alternative is have a credit card from a high street bank were you can pay in store. I know that Halifax accept cash payments to their credit cards on the same day, maybe other banks on the high street offer a similar service?

MME_2

When you make a payment through internet banking, it actually tells you whether it is being processed as a faster payment or not and when to expect the beneficiary to receive the funds.

Mikeyorks

ikr2 wrote: »

Delving deeper I find that there is a £1000 daily limit on FP. As my payment was over £1000 it went via a slower BACS and that's why I was caught out.

Lloyds have had a £2500 immediate FP limit (now £20k) for a long time. The £1k relates to SOs ..... and I doubt you were using that as it's a fixed amount, unless you edit it every month.

pinkdalek

There are changes afoot with bank transfers and payments being received by the next working day, watch this space but it is supposed to be coming in by November 2011.

adamc260

agrinnall wrote: »

I'm not sure that you're right but it's a bit difficult to be certain. From this list http://www.chapsco.co.uk/faster_payments/-/page/fpslimits/ Lloyds have a FP limit of £20,000, the highest of any of the banks at the moment. EGG are listed as an agency bank so I'd guess they do accept FP inward payments. Their FP help page http://new.egg.com/visitor/0,,3_106568--View_2265,00.html does say that FP can be used for credit card payments but doesn't give any limit on the value.

However, relying on FP is not really a good move, it's not a guaranteed payment as there are technical reasons why either the sending or recieving bank may not be able to process a payment leaving BACS as the alternative. Your change to full amount DD is a much better idea, although you'll of course still have to remember to have the money in the account by the DD deadline given by EGG, which may be the day before the DD is taken.

If you read that site it says a "one-off phone/internet Faster Payment" is 20k

a "regular Standing Order" is £1,000

agrinnall

adamc260 wrote: »

If you read that site it says a "one-off phone/internet Faster Payment" is 20k

a "regular Standing Order" is £1,000

I refer you to post #7.

ikr2

MME wrote: »

When you make a payment through internet banking, it actually tells you whether it is being processed as a faster payment or not and when to expect the beneficiary to receive the funds.

Yes it tellls you as it is making the payment - too late to stop it and find some other quicker method if th epayments turns out to be a BACS.