Payments problems

pmduk

We get regular threads on here from people who have had payments land in the wrong account, for various reasons. The Observer today reports that the Payments Council is looking at the problem and wants to hear from people who have been impacted. NB they make it clear they cant assist with individual cases. Their website is here

stclair

Its definitely something the industry needs to look at !

Willing2Learn

It would definitely be helpful if people would send a £1.00 test transaction to a new payee so that receipt can be confirmed prior to sending the lumpsum to the potentially wrong account. That's what I always do. With Faster Payments you can confirm the test transaction so quickly so it doesn't delay a full payment being made.

noizeuk

stclair wrote: »

Its definitely something the industry needs to look at !

I second this considering I work in unauthorised transactions!

stclair

noizeuk wrote: »

I second this considering I work in unauthorised transactions!

I think this is something that should have been considered when faster payments was first introduced.

Luckily the RBSG group do a bank account modulus check when sending payments online. However not all banks/building societies do this.

System

I didn't realise that - I took it that was standard for all BACS and Faster Payments!

stclair wrote: »

Luckily the RBSG group do a bank account modulus check when sending payments online. However not all banks/building societies do this.

noizeuk

stclair wrote: »

I think this is something that should have been considered when faster payments was first introduced.

Luckily the RBSG group do a bank account modulus check when sending payments online. However not all banks/building societies do this.

While modulus checks are in place, there are some instances where one digit out may mean the payment is sent to a non modulus account number at the recipient end. I'm guessing it's checked as correct our end, but not created as modular on the other. I'm guessing but it may be the reason a slip can send a legit payment.

Should the payment be sent, but not an active account it would go to a suspense account. Then once recognised, sent back with an error code.

stclair

noizeuk wrote: »

While modulus checks are in place, there are some instances where one digit out may mean the payment is sent to a non modulus account number at the recipient end. I'm guessing it's checked as correct our end, but not created as modular on the other. I'm guessing but it may be the reason a slip can send a legit payment.

Should the payment be sent, but not an active account it would go to a suspense account. Then once recognised, sent back with an error code.

Ill have to pick someone's brains on this at work tomorrow. I normally chat to the TM on the FP Team on my dinner lol

innovate

What's all this modulus checking when everyone can very easily check the validity of an exact sort code and account number combination?
http://www.postcodeanywhere.co.uk/bank-account-validation/

They got a whole host of services available: http://www.postcodeanywhere.co.uk/support/webservices/bankaccountvalidation/default.aspx

I challenge anyone to find that their sort code and account number combination is not recognised. You can also try some numbers directly adjacent to your account number, and very likely find that they are not in use (but you have only 5 or so free goes).

I find it [STRIKE]very hard[/STRIKE] totally impossible to believe that this type of solution has not been part and parcel of the Faster Payment implementation. But then, banks do manage to do the unbelievable.

What this solution obviously cannot check is that the sort code and acct number combination is indeed for Mr. Smith if I want to make a payment to Mr. Smith. As a user, I must still retain a certain amount of responsibility.

pmduk

I suspect that the people who would check account details in advance aren't the ones making mistakes.

There's another source of problems: some banks (eg LBG) will prefill account details when you input a business name. A customer may assume that these are correct when they're not.