credit card "faster payment" catch...

englishkiwi

Not sure if anyone else has been caught out by their c/card bank and the new "faster payments EU rules.
Mu c/card payment was due on Jan 8th (sun). I made the payment on the friday 6th, but MBNA did not show the payment on my account unitl the 9th, and gave me a £12 default fee. When I have queried this with them, they say the payment has to have been done BEFORE 4PM in order for it to be processed the same day, despite the payments councils website saying the new rules apply 24/7.
(incidently, it turns out I ahd made the internet payment at 15.52 pm on the 6th)
After many many calls to MBNA , they have "on this occasion" refunded me the charge!!.
Anyone know if they are playing by the rules by having this self imposed 4pm rule ?:mad:

YorkshireBoy

englishkiwi wrote: »

When I have queried this with them, they say the payment has to have been done BEFORE 4PM in order for it to be processed the same day, despite the payments councils website saying the new rules apply 24/7.

The rules (PSD) are that a payment has to arrive by the end of the next business day.

So your bank could have ignored your request and sent it on Monday 9th...and so long as it arrived by the close of business (at MBNA) that day the 'rules' would have been followed.

As a general point, you have around 2-3 weeks in which to make the payment as advised on your statement. Best not to leave it until the last minute would be my advice to you.

englishkiwi

Yes, I understand what your saying, but I was only going by the rules set out by the new EU regulations. This is what is on the paymentcouncil.org.uk website :.........


Ø Customer input using online or telephone banking or using a branch based service.
Ø Payments are available 24 hours a day, 7 days a week.
Ø The system provides a positive response to the customer bank within 15 seconds, and providing a reason for any rejected payment.
Ø The money must be available in the receiving cutomer account within 2 hours.
From 1 January 2012, an EU-wide law change means that standing orders and phone and
internet banking payments must reach the recipient’s bank account by the end of the next
working day. However, in the UK almost all such payments (made at any time of the day) will
exceed this requirement, being made available within two hours through the Faster Payments
service.

agrinnall

The important word in the last sentence is almost.

leicsmarkyr

It probably does reach the BANK ACCOUNT of MBNA within 2 hours. But will take up to the next working day to be applied to your account which is acceptable under PSD and most issuers will work to this

leicsmarkyr

And as stated on the MBNA website

Faster Payments is a service to transfer funds directly from your current account. Faster Payments received on business days before 4pm will be credited to your account the same business day, after 4pm, or on a weekend/bank holiday, they will be credited to your account the next business day. Payments can be seen on your account the day after being credited.

So assuming you made the payment after 16:00 on the 6th January, the payment hit the account in the correct timescales and within the guidelines of PSD.

You have received the £12 late payment fee back as a gesture of goodwill so nothing to complain about as such. Just remember for future use

englishkiwi

Yes I am aware of the actual wording on MBNA small print, and that is exactly what I am querying. THEY say before 4 pm, however the payment councils website says "at any time".
Also, when MBNA offered to refund the money and said they would be sending a letter to confirm this, I said I do NOT want the money back "as a gesture of goodwill" as that would imply I was in the wrong. ( my payment was made online at 15.52 pmon the friday). MBNA did say they didnt know what had gone wrong, and the letter makes no mention of any "goodwill ! "
So reult for me......... albeit a minor one I know"!l
My posting was more of a warning to others really just to keep your eyes peeled , and argue your point if they are to follow the new EU regulations!

jonesMUFCforever

In this case I'm with MBNA - for example had you made the payment at say 2 o clock in the morning would you expect it to be credited within 2 hours?
Best thing to read is the terms and conditions of the product you have not a government quango.

ejc81

jonesMUFCforever wrote: »

In this case I'm with MBNA - for example had you made the payment at say 2 o clock in the morning would you expect it to be credited within 2 hours?

In the near future, YES I would, they can already transfer money between accounts instantly electronically, they all just need to update their systems so the consumer can see the result in the receiving account.

jonesMUFCforever wrote: »

Best thing to read is the terms and conditions of the product you have not a government quango.

Thats exactly what the OP has done, and that is exactly the point he was making above, and he is entirely correct.

callum9999

ejc81 wrote: »

In the near future, YES I would, they can already transfer money between accounts instantly electronically, they all just need to update their systems so the consumer can see the result in the receiving account.



Thats exactly what the OP has done, and that is exactly the point he was making above, and he is entirely correct.

Maybe I've missed something, but FPs don't ALWAYS happen instantly. The OP left an 8 minute window for the payment to get from their bank to MBNA. While that is NORMALLY sufficient, it isn't beyond the realms of possibility that the payment got held up and took 9+ minutes to get there. In fact, every time I make a payment it tells me to expect it to take up to 2 hours to process, so the OP just needs to take that on board for his future payments.