MSE News: EU overhaul leads to faster electronic payments

jamesd

This affects payments to credit cards as well. All "payment accounts" are affected, which mainly excludes certain types of savings account, like those with notice required for withdrawing. The money must show up on your card no later than the end of the following business day, though note that payments some time after 3:30PM, time varying with each bank, will be treated as an instruction to pay on the next day and might be slower - though probably not because they will go via faster payments anyway.

adindas

Does EU directive the apply to Building Societies .... ???

I am asking this quetion because I have seen a building society cleally state that they could accept FPI (Faster Payment Inward) do not suppurt FPO (Faster paymanet outward from their BS) ???

I believe it does not apply but opinion from other people are greatly appreciated ....

noh

adindas wrote: »

Does EU directive the apply to Building Societies .... ???

I am asking this quetion because I have seen a building society cleally state that they could accept FPI (Faster Payment Inward) do not suppurt FPO (Faster paymanet outward from their BS) ???

I believe it does not apply but opinion from other people are greatly appreciated ....

It applies to building societies and most other organisations that provide payment services. Certain types of accounts including some savings products are not designated as "payment accounts" therefore the requirement to provide electronic transfers by the end of the day following request does not apply.

See Q16 here
https://fsahandbook.info/FSA/print/handbook/PERG/15/3

NFH

Mikeyorks wrote: »

In which case 90% of the working UK population won't get paid this month - as BACS Direct Credits is how it's done. Fortunately for them - it is fully compliant.

Your (lack of) knowledge of BACS Direct Credits appears to be right up there with your (lack of) knowledge of SOs. From your equal obtuseness on an earlier thread.

BACS, if the payee receives the money always at least two working days after the payment order, does not comply with Regulation 70(1) of the Payment Services Regulations 2009. If the payment service provider uses other payment mechanisms to transmit more immediate payments, then the payment service provider will be compliant, even if BACS on its own is not.

noh

NFH wrote: »

BACS, if the payee receives the money always at least two working days after the payment order, does not comply with Regulation 70(1) of the Payment Services Regulations 2009. If the payment service provider uses other payment mechanisms to transmit more immediate payments, then the payment service provider will be compliant, even if BACS on its own is not.

Which has never been in dispute.
BACS Direct Credit which is used by businesses to pay the salaries of the majority of the UK workforce is compliant.
The BACS system previously used by consumers before the introduction of FP is not compliant.

Mikeyorks

NFH wrote: »

BACS, if the payee receives the money always at least two working days after the payment order, does not comply with Regulation 70(1) of the Payment Services Regulations 2009. If the payment service provider uses other payment mechanisms to transmit more immediate payments, then the payment service provider will be compliant, even if BACS on its own is not.

It's a pointless exercise tediously and repetitively pointing at parts of the PSD regulations when you don't understand the payment mechanisms that are being discussed.

noh

NFH
Read this http://www.paymentscouncil.org.uk/files/payments_council/guidance_document_2011_v2.pdf

specifically page 12

NFH

noh wrote: »

NFH
Read this http://www.paymentscouncil.org.uk/files/payments_council/guidance_document_2011_v2.pdf

specifically page 12

Yes, it says that BACS Direct Credit is acceptable only as a future dated payment service, but that FPS is necessary for immediate transactions, exactly what I said above.

jamesd

NFH wrote: »

Yes, it says that BACS Direct Credit is acceptable only as a future dated payment service, but that FPS is necessary for immediate transactions, exactly what I said above.

I take it that you're recanting and now know that BACS Direct Credit is a future dated notification system?

Mikeyorks wrote: »

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.

NFH wrote: »

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.

NFH wrote: »

Yes, that's applicable to payments instructed in advance which is all well and good, but if an employer instructs its bank on day T+0 to make an immediate salary payment by BACS, then the payment will not be received (or sent) until T+2, which breaches Regulation 70(1).

NFH

jamesd wrote: »

I take it that you're recanting and now know that BACS Direct Credit is a future dated notification system?

Indeed, it is, and this is precisely why it does not comply on its own. A payment service provider can comply only if it operates another more immediate service as well, such as FPS, as is explained clearly in the link posted by noh.