MSE News: EU overhaul leads to faster electronic payments

IrishGypsy

BAA1 wrote: »

Could MSE Guy or a banking industry expert confirm what happens if a transaction is submitted with an amount that exceeds your bank's FP transaction limit.
e.g. Online single payment of £11,000 from an RBS current account (RBS limit = £10K)

Will the transaction be sent using CHAPS free of charge ?
OR
Will it go by FP ignoring the RBS transaction limit ?
OR
Will the transaction be rejected ?

Santander's system will simply reject the payment if it's over the FP limit and it'll require a CHAPS payment (£25 fee still applies for CHAPS payments).

luckwudaveit

NFH wrote: »

It has to arrive by no later than the next working day, but in practice FPS means it will arrive the same day. However, your card issuer must credit the amount to your card account immediately upon receipt. They cannot post-date it until the next day for example.

Thanks - could come in handy when pay day falls just a day before the credit card payment is due.

cool4kaz

I have just queried this with my Debenhams Card Acct (which is run by Santander) as due to illness over xmas I have forgotten to make a payment on my account which is due tomorrow. I normally bank online with the Halifax and have always benefited from the Faster payment system, however Santander changed their account details last month and although it leaves my Halifax account as faster payment it now tells me that Santander has not confirmed recpt and to contact them

I did make the payment today but the nice chap from an Indian call centre told me in no undertain terms that it will not clear into my account for another 2 days and that my statement makes this perfectly clear! I mentioned the new rules to him but he was not in the least bit interested and kept referring me back to the terms and conditions .... not happy if I am now charged late payment fees!!!

NFH

cool4kaz wrote: »

I mentioned the new rules to him but he was not in the least bit interested and kept referring me back to the terms and conditions .... not happy if I am now charged late payment fees!!!

Their T&Cs cannot override the law. If you're charged a late payment fee, quote Regulation 70(1) and Regulation 73(1)&(2) of the Payment Services Regulations 2009. If they ultimately refuse to refund it, complain to the Financial Ombudsman. The law is on your side.

Skoorb

A full explanation is posted on the PayYourWay website at http://www.paymentscouncil.org.uk/files/payments_council/payments_council_press_releases/d+1.pdf

turbo.jet

Excellent... next bit of progress that would be nice to see would be debit card transactions in shops and online appearing instantly on your internet banking/statement (not just removed from your available balance) as happens in other countries (Australia for example).

Actually, and at the risk of sounding like one of those horrible Aussies that come over here and spend the whole time whingeing about how much better Australia is, they also reflect credit card payments immediately when the credit card is issued by the bank you do the transfer from.

NFH

turbo.jet wrote: »

Excellent... next bit of progress that would be nice to see would be debit card transactions in shops and online appearing instantly on your internet banking/statement (not just removed from your available balance) as happens in other countries (Australia for example).

Why? The status quo is to the advantage of the customer. If the value date of a debit is delayed, then the customer benefits.

turbo.jet wrote: »

Actually, and at the risk of sounding like one of those horrible Aussies that come over here and spend the whole time whingeing about how much better Australia is, they also reflect credit card payments immediately when the credit card is issued by the bank you do the transfer from.

UK banks have to do this already even if the paying bank and receiving card issuer are different financial institutions. See Regulation 73(1)&(2) of the Payment Services Regulations 2009.

turbo.jet

NFH wrote: »

Why? The status quo is to the advantage of the customer. If the value date of a debit is delayed, then the customer benefits.

How? I'd rather know how much money is left in my account after any transactions I've made. I don't see the benefit in being displayed a balance which is about to change but hasn't yet.

NFH wrote: »

UK banks have to do this already even if the paying bank and receiving card issuer are different financial institutions. See Regulation 73(1)&(2) of the Payment Services Regulations 2009.

Ah... I did not know this. When I make a payment to my HSBC issued Visa card from my HSBC current account, it doesn't appear on the Visa card until the following day.

NFH

turbo.jet wrote: »

How? I'd rather know how much money is left in my account after any transactions I've made. I don't see the benefit in being displayed a balance which is about to change but hasn't yet.

But just above, you said that the transactions are reflected in your updated balance but don't show yet as transactions on your account. That seems ideal, because you know your projected balance, but for interest calculations etc the value dates are later, i.e. in your favour.

turbo.jet wrote: »

Ah... I did not know this. When I make a payment to my HSBC issued Visa card from my HSBC current account, it doesn't appear on the Visa card until the following day.

Then they are in breach of Regulation 73(2). I know of other card issuers who are too. It will be interesting to see what happens about this. The best card issuer for this in my experience is Santander, which is surprising given the number of complaints about them in these forums. When I send an FPS payment from Barclays to my Santander Zero card (usually while abroad), it appears on my Santander online banking in under 10 seconds. This is how it should work with all banks.

turbo.jet

NFH wrote: »

But just above, you said that the transactions are reflected in your updated balance but don't show yet as transactions on your account. That seems ideal, because you know your projected balance, but for interest calculations etc the value dates are later, i.e. in your favour.

If I drill into another page which displays the 'available balance' in small print I can see what it should be, but on the balances on all the main screens it takes days to show transactions. The bank doesn't pay me any interest on my current account anyway (they only charge it) so there's no benefit. Its just confusing. In a perfect world I just want to be presented with one balance which is immediately updated with my purchases.

NFH wrote: »

Then they are in breach of Regulation 73(2). I know of other card issuers who are too. It will be interesting to see what happens about this. The best card issuer for this in my experience is Santander, which is surprising given the number of complaints about them in these forums. When I send an FPS payment from Barclays to my Santander Zero card (usually while abroad), it appears on my Santander online banking in under 10 seconds. This is how it should work with all banks.

I also have Santander accounts and their back office systems are ridiculous, there doesn't seem to be any rhyme or reason to how things update. Some payments go instantly, others take longer. Very strange bank indeed. I don't have a credit card with them though so can't comment on that, only savings and a current account.