Faster Payment timescales, aka the lies banks tell

malc_b

Some Facts:

Big banks are directly wired into faster payments.
A big bank to big bank payment is sub 1s.
Faster payments uptime is near 100%.

Small banks and building societies are not direct but have to go via a big bank, hence the faster payment rules say that it can take up to the next working day. That's because a small building society might only be open Mon-Fri and it send all transfers to the big bank at the end of a working day in one hit.

So when a big bank to big bank faster payment does not go through and the big bank "implies" that it is the fault of faster payments by quoting "faster payments may take up to the next working day" they are plain lying. Faster payment service does not block payments. It is the sending bank.

eskbanker

Some more facts:

1. The Faster Payments rules dictate that such payments must be completed by the end of the next working day.
2. Actually transferring the funds can be achieved in much less than that.
3. Fact 2 doesn't overrule fact 1.

Archi_Bald

Fact 4: Banks are legally obliged to comply with AML. Thus they have the legal right to delay Faster Payments until the end of the next business day.

Fact 5: if their investigations find fraudulent activity, they have the legal obligation to stop the payment entirely and block the account.

mgdavid

malc_b wrote: »

Some Facts:

Big banks are directly wired into faster payments.
A big bank to big bank payment is sub 1s.
Faster payments uptime is near 100%.

Small banks and building societies are not direct but have to go via a big bank, hence the faster payment rules say that it can take up to the next working day. That's because a small building society might only be open Mon-Fri and it send all transfers to the big bank at the end of a working day in one hit.

So when a big bank to big bank faster payment does not go through and the big bank "implies" that it is the fault of faster payments by quoting "faster payments may take up to the next working day" they are plain lying. Faster payment service does not block payments. It is the sending bank.

so what, then?
Do you have an actual problem that you would like some help with?

agrinnall

No lies told, typical attention grabbing but nonsensical headline, do you work for The Sun?

pinkdalek

What is the entire point of this thread?
Simple fact is if your bank or building society fails to provide you with a service then ditch them and go elsewhere.

Is it not some EU ruling that any bank to bank payment sent within the EU has to get there by the close of business the following working day anyway?

There is a real and easy tip here, don't leave things to the last minute. This advice can be used in everything in life that you are trying to plan.

Edi81

agrinnall wrote: »

No lies told, typical attention grabbing but nonsensical headline, do you work for The Sun?

Or the Daily Mail?

jamesd

malc_b wrote: »

Faster payment service does not block payments. It is the sending bank.

Or the receiving bank. Or some temporary glitch in the system or a bank's connection to it. Big bank to big bank delays for larger or uncommon amounts are more likely to be due to money laundering checks. Small amounts that are routine due to glitches.

colsten

What's the issue you are trying to address, malc_b?

meer53

malc_b wrote: »

Some Facts:

Big banks are directly wired into faster payments.
A big bank to big bank payment is sub 1s.
Faster payments uptime is near 100%.

Small banks and building societies are not direct but have to go via a big bank, hence the faster payment rules say that it can take up to the next working day. That's because a small building society might only be open Mon-Fri and it send all transfers to the big bank at the end of a working day in one hit.

So when a big bank to big bank faster payment does not go through and the big bank "implies" that it is the fault of faster payments by quoting "faster payments may take up to the next working day" they are plain lying. Faster payment service does not block payments. It is the sending bank.

Thanks for that.

Gentoo365

The timescales are set by EU legislation and specify the next working day. There are also regulations regarding fraud and money laundering checks.

If the bank deems the payment low risk it can send it immediately. However it has to have a process in place to check some of them. Which may involve a phone call, maybe a text message, maybe just someone checking the transaction is 'normal' by looking at the account.

However if you ring a bank and specifically tell them you want the payment to go that day then they can do any security checks there and then.

If they sent them all immediately then there would be a lot more potential for fraud.

In fact, some banks may move to next working day due to complaints regarding funds going to the wrong person (due to customer error, e.g. keying in the wrong account number). Delaying it gives the bank the chance to ask for confirmation for large amounts.