sending deposits via chaps vs Faster payment

ruggedtoast

My solicitor said CHAPS or nothing. Apparently whatever the alternative is can still be reversed if the payee changes their mind or the bank things there is an error, weeks later.

Annoying as I had to do two and it was £15 for each but considering my anxiety level about the whole thing going through was in the stratosphere I was glad to not have to worry about it.

Weird as it has just occurred to me I doubt I will ever have that much cash money again my life.

benjus

3 years or so ago I transferred some money (£1000 IIRC) from one of my accounts to another (in a different bank) using Faster Payments. It was the first time I'd transferred between these 2 accounts so I did a quick test transfer of £1 first, which arrived instantly.

However, the £1000 just disappeared. The sending bank confirmed that it had gone and gave transaction reference numbers, while the receiving bank just shrugged their shoulders and said they couldn't see it. I was abroad at the time which made matters harder. After many calls to both banks over about a week I was trying to get them to talk to each other directly, when the receiving bank suddenly announced they'd found the money.

Bottom line - if it's a time-critical transfer, I would NOT rely on Faster Payments. They normally work instantly, but not 100% of the time. I also believe (may be wrong here) that under certain circumstances they can be downgraded to standard BACS transfers, and I'm not sure if the bank will tell you in advance if this will happen.

Old_Git

pjread wrote: »

I used FP without issue, but...

Is that true, Santander don't charge for CHAPS? Their website seems to indicate it's £25.

I asked in branch and they said no charge for customers .
I asked nationwide and co op and they both charged .

Herbalus

I called my bank (First Direct) and did both transfers over the phone, even one over £50,000. That way they can go through extra security if needed, and call you back 5 minutes later, with a different set of security questions, to ensure you're the account holder. Both went through as FP the day after I'd called, so by close of the second business day.

FP is fine to do it, but you just need to make sure you do it in advance.

anna42hmr

Thanks everyone for your comments and experiences, it has given me a lot to think about

agrinnall

ruggedtoast wrote: »

My solicitor said CHAPS or nothing. Apparently whatever the alternative is can still be reversed if the payee changes their mind or the bank things there is an error, weeks later.

Get a new solicitor. Once initiated a Faster Payment cannot be reversed.

DepositSaver

My solicitor said my deposit needed to be sent by CHAPS to guarantee it being usable the following day, something to do with often not all the sender details being available the next day even if the cash has arrived, thus rendering the cash unusable until all the details arrived.

I went to Santander, asked to do a CHAPS payment, then sent the money, when I asked how much the charge was they said they hadn't actually done it by CHAPS as it was only £10,500 and had to go by Faster Payments. My solicitor contacted me the next day to say the money was there but not all the sender details were, thus delaying my exchange. If time is critical I personally would use CHAPS.

Herbalus

DepositSaver wrote: »

My solicitor said my deposit needed to be sent by CHAPS to guarantee it being usable the following day, something to do with often not all the sender details being available the next day even if the cash has arrived, thus rendering the cash unusable until all the details arrived.
...If time is critical I personally would use CHAPS.

That's the key part. As FPs are guaranteed by the end of the second business day, you need that second day to be at least the day before completion. They money needs to be there and useable on the morning of completion, so if completion is Friday, you need to send the money by Wednesday lunchtime (most banks have a cut off point early afternoon I think) so it will have arrived by Thursday close of business.

bris

I have done loads of FP transfers but I do have a regular relationship with my solicitor.


I suppose on a one off transaction where you don't really get to know the client it may be seen as a risk, however I have never heard of a faster payment being reversed after it is cleared in an account, I didn't think you could.

agrinnall

DepositSaver wrote: »

My solicitor contacted me the next day to say the money was there but not all the sender details were, thus delaying my exchange. If time is critical I personally would use CHAPS.

I have to doubt the word of your solicitor, if the money is there so are all the details that FPS will ever provide. You might get a bit more information with a CHAPS payment but it shouldn't be beyond them to reconcile payments that they've received by whatever method.