MSE News: EU overhaul leads to faster electronic payments

noh

reginald wrote: »

I opened a new AA savings account before Xmas Came live today so I tried to transfer some money from RBS to my AA account via direct debit. The on-line transaction told me it takes three days and the 10/01/12 was the earliest this transfer could take place. So not much changed. Any ideas why the AA should be exempt from the new law?

Sunil has informed you above of the quickest method of funding the AA accounts above. Which I can confirm works with funds credited to the account within 2 hours also withdrawals are credited to your nominated account within 2 hours

The method of funding using a DD does comply with the new rules as DDs are instant transfer. You need to give 3 days notice to set them up but the transfer of cleared funds is instant on the requested date.

NFH

egrid1 wrote: »

Can somebody confirm whether the practice of sending the first payment to a specific account, through the old method, will continue.

There have been some banks that have offered "Faster Payment", but when it is used for a one off payment, to a recipient that you have not sent to before, they have sent it through the normal route (3 days+).
Nationwide was one bank that followed this practice.

Will the first payment also have to go through "Faster Payments", or be the next working day, or still the old route?:question:

No, sending the first payment by this slower method would breach Regulation 70(1) of the Payment Services Regulations 2009, which states "Subject to paragraphs (2), (3) and (4), the payer’s payment service provider must ensure that the amount of the payment transaction is credited to the payee’s payment service provider’s account by the end of the business day following the time of receipt of the payment order."

jamesd

The practice of sending the first payment via BACS does nevertheless continue at Santander, apparently. Quite possibly at other places as well. This may be a fraud limitation approach since FP is irrevocable and usually fast while a BACS transfer can be recalled and would slow down the activity of a fraudster trying to extract money to their own accounts.

Doesn't mean that complaining about it would fail, though.

redblack

i recieve income support which goes into my co op account, but i dont recieve it through faster payment.
I asked in my branch and they said it depends on what bank the dwp use is this correct, as i thought all payments are suppossed to be faster payment now, also my account is able to reiceive them as i have checked.

NFH

jamesd wrote: »

The practice of sending the first payment via BACS does nevertheless continue at Santander, apparently. Quite possibly at other places as well. This may be a fraud limitation approach since FP is irrevocable and usually fast while a BACS transfer can be recalled and would slow down the activity of a fraudster trying to extract money to their own accounts.

There is no provision in the Payment Services Regulations 2009 for delaying receipt of a payment as a fraud limitation measure.

bubieyehyeh

The practice of sending the first payment via BACS does nevertheless continue at Santander, apparently.

My first payment out of my santander esaver account, went via faster payment.

Mikeyorks

redblack wrote: »

I asked in my branch and they said it depends on what bank the dwp use is this correct, .

Nothing to do with the Bank - everything to do with the payment method. DWP will use BACS Direct Credits. It's a 3 day cycle with the debit / credit on the 3rd day. So fully conforms with PSD. It's how most peoples wages / salaries are paid.

You wouldn't get it any quicker if they used FP. They'd just delay initiating the payment for 3 days.

coolesticeking

redblack wrote: »

i recieve income support which goes into my co op account, but i dont recieve it through faster payment.
I asked in my branch and they said it depends on what bank the dwp use is this correct, as i thought all payments are suppossed to be faster payment now, also my account is able to reiceive them as i have checked.

This is not true, although for us personal customers we can no longer send BACS via the 3/5 Day route BACS Credit still works, and this is what salary and benefit payments still go through, so sadly you won't see your payments any quicker.

In the future who knows!

NFH

Mikeyorks wrote: »

DWP will use BACS Direct Credits. It's a 3 day cycle with the debit / credit on the 3rd day. So fully conforms with PSD. It's how most peoples wages / salaries are paid.

How does it comply? It doesn't comply with Regulation 70(1) of the Payment Services Regulations 2009, the UK enactment of the PSD. This requires the payment to reach the payee's account by T+1 after the payment order is given, but you're suggesting that reaching the payee's account by T+2 is acceptable; it is not.

jamesd

A sender is allowed to say pay on a different day, that can be done via FP and presumably also via BACS Direct Credits:

"(4) Where the payment service user initiating a payment order agrees with its payment service provider that execution of the payment order is to take place—

(a)on a specific day;

(b)on the last day of a certain period; or

(c)on the day on which the payer has put funds at the disposal of its payment service provider,

the time of receipt is deemed to be the day so agreed."