CO-Operative bank A/C Balance Updates

First_Sea_Lord

Gromitt wrote: »

From what I've read, Online banking is completely seperate to the network used by ATMs, so they both could give you different information. This is done for security reasons. Updates are 'pushed' from the bank to your OLB interface (and vice version if for example you make a payment). If you want a truly accurate available balance then you need to ring up your bank and ask, then they will tell you your current cleared balance along with any pending transactions.

In your example above, the FP transaction would likely fail unless you had an overdraft or reserve setup as it's not a guaranteed payment.

So why do pending transactions that have not hit the account mean you can still spend more than you have - is the system not clever enough to block say even if its just a basic account you have?

Gromitt

The system is but retailers are not.

So you can go into a shop and spend £100 on a Friday night
Then withdraw £100 on the following Monday.
The retailers payment might not be taken until Tuesday or later the following week, but its guaranteed, so regardless of what you have in your account, its coming out.

First_Sea_Lord

Yes but with Smile or Co-op if you had £100 available, switched £100, then went to the cashline machine it wouldn't allow you to take anything out yet you could go into a shop and switch another £100. Most other banks you would not be able to do this as the available balance updates automatically.

Gromitt

Most banks only reserve the amount you used your card for so long, then they release it back. The shop can still take the cash at a later date (when you have less than the amount you spent)

First_Sea_Lord

Not for basic accounts they don't though? The OP had a cashminder and in his situ he could easily go overdrawn.