Processing on week ends

10_66

Apologies if this is a naive question, but if a bank account can be automatically updated immediately when cash is drawn from it via an ATM over the weekend and bank holidays, why can't other processing (like direct debits and standing orders) be carried out on week ends and bank holidays as well?




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opinions4u

Because they can't!

Stop asking sensible and logical questions relevant to the 21st century.

glider3560

The direct debit computer system is entitled to a statutory rest break. The Working Time Regulations require at least a 24 hour break each week. The direct debit computer system decides to take 48 hours rest, namely Saturday and Sunday.

On the other hand, the ATM processing system chooses not to have a rest break. Instead, it works all hours to bring in the overtime money.

virgin_moneysaver

if you get a mini statment on a Saturday/Sunday it will show paymnets in & out due on the Monday & yr balance taking this into account, also yr on-line banking on the w/e shows mondays entries

rb10

virgin_moneysaver wrote: »

if you get a mini statment on a Saturday/Sunday it will show paymnets in & out due on the Monday & yr balance taking this into account, also yr on-line banking on the w/e shows mondays entries

No, that depends on the bank.

My bank shows transactions on the actual date that they happen.

Milarky

10_66 wrote: »

Apologies if this is a naive question, but if a bank account can be automatically updated immediately when cash is drawn from it via an ATM over the weekend and bank holidays, why can't other processing (like direct debits and standing orders) be carried out on week ends and bank holidays as well?

I take it the question was somewhat rhetorical?

I believe the correct answer is along the line of 'different systems' - the ATM is a 'real-time settlement' service so needs the money in your account to be credited to it before it will spit out any of its own.

The reason banks themselves will only process payments like standing orders in 'office hours' is partly historical and partly practical. Legally, 'settlement' is governed by an Act of Parliament dating from 1871 - but does at least ensure that (like nineteenth century versions of the ATM system) their payments can all 'shunt' at the same time. Banking was established on the basis of 'gross settlement' with payment instruments - like cheques - followed by 'paperless' alternatives such as standing orders and the direct debit scheme - that rely on this method and which did not anticipate an era or real-time individual settlement - of which ATM withdrawals are the first example, I suppose.

But you can play the system too, sometimes. If I withdraw money on a Saturday from Nationwide using an ATM, I may transfer an equal amount from Lloyds the same day to cover this - thanks to faster payments. Lloyds counts this as being transferred in the week (it's up to them, but that's what they do - ditto Barclays, and Natwest) So the advent of Faster Payments has allowed us to 'back up' settlement from a weekend to a later date in this case.

10_66

Milarky wrote: »

I take it the question was somewhat rhetorical?...

Actually, it wasn't. Strange as it might seem, I was just interested in the reason why and didn't know. Thanks for your reply.