Payment question

pcombo

Hi, I am wondering how this situation would work out.

A company sends a payment using bacs but the receiving account uses faster payments, Does the payment still take 3 days to clear.

InsideInsurance

Yes, whilst both accounts must be able to use BACS or Faster Payments for either to be able to work it is the sender that determines which is used in the case that both are available. I believe some banks charge businesses more for using faster payment -v- BACS fees.

pmduk

For faster payments to work both sending and receiving institutions have to have their faster payments systems up and running. A problem on either side (or no provision for faster payments) and the transaction will revert to the slower method.

Mikeyorks

pcombo wrote: »

A company sends a payment using bacs but the receiving account uses faster payments, Does the payment still take 3 days to clear.

Most businesses issue payments via BACS Direct Credit. It's a standard 3 day cycle ...... and whether the receiving account is FP enabled or not is immaterial.

pcombo

It would seem the company use to use faster payments but reverted back to bacs, I had no idea FP costs for businesses.

Cahoot told me the bacs system isn't in use now.

agrinnall

pcombo wrote: »

It would seem the company use to use faster payments but reverted back to bacs, I had no idea FP costs for businesses.

Cahoot told me the bacs system isn't in use now.

The BACS system as used by personal account customers (and businesses) prior to 1/1/2012 is no longer in use. All electronic payments originating from personal accounts to another UK account now go either by Faster Payments or by CHAPS if they are above the sending bank's FPS limit. Businesses can still use the BACS Direct Credit system as mentioned by Mike earlier. Most businesses pay for all transactions, the amount varies depending on what system they use. I'm not sure whether Cahoot provide business banking, if they don't then as far as they are concerned the BACS system effectively doesn't exist any more for outgoing payments, although they will still need to process the incoming files containing direct credits (such as salary payments).

PhoenixDF

pcombo wrote: »

It would seem the company use to use faster payments but reverted back to bacs, I had no idea FP costs for businesses.

Cahoot told me the bacs system isn't in use now.

BACS isn't used to day-to-day Banking for general public accounts as it's now become out dated. However it is still used for Wages, Company payments etc as its cheaper than FPS

Mikeyorks

PhoenixDF wrote: »

However it is still used for Wages, Company payments etc

No. BACS and BACS Direct Credit are completely separate animals ...... and it's the latter that is still in widespread use.