same day payments delayed until 2008

exel1966

It's daylight robbery that we have to wait 2-3 days at present, but I'd rather wait and hopefully have a system which has been thoroughly tried and tested before it's launch rather than one that we rely on that isn't up to scratch.

dunstonh

exel1966 wrote: »

It's daylight robbery that we have to wait 2-3 days at present, but I'd rather wait and hopefully have a system which has been thoroughly tried and tested before it's launch rather than one that we rely on that isn't up to scratch.

i will quite miss the old clearing cycle as you could make money out of it. Double interest being the main one. Obtaining goods but not having the money debited until 3 days later so earning interest longer.

So, it isnt right to call it daylight robbery as it can work for you as well as against. Personally, I gain more than I lose. Especially on my business account where cheques are mostly used.

meme_3

Going off on a tangent a bit - I recently transferred money from one Abbey account to another over the internet. It took 4 or 5 days (same bank!).
Was told by Abbey that if I had phoned, money would have been transferred instantly. Indeed next time I needed to do so, that's exactly what happened!:beer:

Regarding instant transfers between different banks - they can do it now, but it costs us money - I paid £30 last month....

PosterBoy77

dunstonh wrote: »

i will quite miss the old clearing cycle as you could make money out of it. Double interest being the main one. Obtaining goods but not having the money debited until 3 days later so earning interest longer.

So, it isnt right to call it daylight robbery as it can work for you as well as against. Personally, I gain more than I lose. Especially on my business account where cheques are mostly used.

As far as I know, the clearing cycle for cheques will remain as it is, so you need to worry about loosing out.

Milarky

mikael wrote: »

As far as I know, the clearing cycle for cheques will remain as it is, so you need to worry about loosing out.

This bit will change in November, according to the announcement - cheques will earn interest from two days after deposit rather than three - the same day as the value of the cheque is drawn from the payer's account. The issue with the clearing delay and cheques for me is it represents a denial of choice: I can't stipulate that I wish to be paid by 'cash' or other 'instant' means. As cheques are used for larger amounts on average, the payer benefits here at the expense of the payee. Writing a cheque 'to yourself' will become a bit better however, as you will no longer lose days interest.

PosterBoy77

Milarky wrote: »

This bit will change in November, according to the announcement - cheques will earn interest from two days after deposit rather than three - the same day as the value of the cheque is drawn from the payer's account. The issue with the clearing delay and cheques for me is it represents a denial of choice: I can't stipulate that I wish to be paid by 'cash' or other 'instant' means. As cheques are used for larger amounts on average, the payer benefits here at the expense of the payee. Writing a cheque 'to yourself' will become a bit better however, as you will no longer lose days interest.

You seem to be right about the cheque clearing cycle changing a bit, but it does not seem to have any real impact on how soon fund are cleared. It just seems to indicate that once a certain time has elapsed, the cheque deposit is 100% safe.

Some banks already pay interest from the day of deposit and others only after 4 days. Others fall in between. I'm not sure this is going to change?

wayoflife

Hey,

I think its pathetic they cant meet the deadline of November this year. Quite rigtly Dunstoneh has said about us subsidising people who cannot run their account properly,

however I do think that there will be a number of loopholes in the "paid banking system", as there already are in first directs. Those with many products with the bank will not pay for a good few years to come

as far as the comment about £10.00 a month accounts who pay freebies, they arent free as your paying £10.00 a month, and they are not what you think they are. Unless you just happen to use all of the services provided (very unlikely) you will not get back the amount you spend out every month...

not having a go mate but just be careful about this...its the same with credit cards what they are offering isnt always a genuine offer

Innys

I'm sorry but I think it's utter rubbish that this is a massive undertaking and therefore more time is needed.

This process has been in place on the continent for years. What's so special about the UK banking system that makes it impossible to copy, say France's, methodology?

Also, didn't a similar "massive undertaking" occur with the deregulation of the electricity industry? In that case different computer systems had to be made to talk to each other, virtually overnight. It was achieved without delay, though admittedly, whether it has been beneficical to the consumer is up for debate.

I think the fact that online transfers currently take up to three days is inexcusable, given the world we live in. Extending the deadline for delivery of this project is just a ruse for the banks to make more interest on our money while it's "in the ether" from bank to another. Anyone who tells you otherwise is either a liar or laughably naive.

dunstonh

This process has been in place on the continent for years. What's so special about the UK banking system that makes it impossible to copy, say France's, methodology?

Probably as the UK handles more transactions, has more banks and individual systems, not paid for by the Govt and requires and act of parliament to make changes.

I think the fact that online transfers currently take up to three days is inexcusable, given the world we live in.

I don't. Remember that it was bolted on to the cheque's system and whilst we go on about technology, had they made changes 5 years ago, that system would almost certainly be less capable than the one that will be coming in now.

Anyone who tells you otherwise is either a liar or laughably naive.

Anyone who thinks it is that easy clearly doesn't know what they are talking about. Perhaps we should send the banks down to PC world and that would solve the problem.

morg_monster

For more information regarding the changes to the cheque clearing cycle see

http://www.which.co.uk/reports_and_campaigns/money/reports/banking_and_borrowing/Cheque_clearing_times_news_article_557_100159.jsp

and a key quote:

Interest will be paid on cheques no more than two days after they are paid in and the money will be available to withdraw after four. After six working days, customers will be able to assume that the cheque will not bounce.

As someone said above, not clear how this will impact the payer of the cheque - when the money will officially be gone from their account.
I believe that this change is still on course to be implemented in Nov 2007