Standing Order Times

agrinnall

henm2 wrote: »

Standing orders still generally take 3 days to process through as they use the BACS system
http://moneyfacts.co.uk/guides/banking/what-is-a-standing-order170611/
and http://www.financial-ombudsman.org.uk/publications/ombudsman-news/38/standing-orders-direct-debits-38.htm

I'll just add to the general slagging of your nonsensical and completely misleading post by saying that as far as I am aware there is now no interface available to the BACS 3 day system for Standing Orders, or indeed for any transactions other than BACS Direct Credits. I'll echo Archi's challenge to you to provide evidence to the contrary.

henm2

Apologies. I stand corrected. Taking for example HSBC's general terms and conditions clause 15.2 it does confirm that standing orders do nowadays use the faster payment system and therefore take only 1 day to process and not 3 days.

Dobbibill

2006Kuredu wrote: »

Hi All

Wondering if someone could help please, Ive decided to go from the very easy world of 1 joint account that we were paying £25 per month for to the following

Halifax Reward Account Each (salaries go in to this to get £5 each)
Santander 123 Account for bills (to get cashback)
Lloyds Account for mortgage payment (its a requirement)

So, now we need to arrange to transfer money from the Halifax accounts to both Santander and Lloyds each month - We both get paid "last working day of the month" and the mortgage goes out on the 1st Month.

Im going to have to speak to LLoyds to see if I can get this date changed, but just so I know I have a "buffer" does anyone know how long standing orders generally take to land at the other banks, also, if I set the standing order up for the last day of the month would this come out before or after salaries are paid in?

Thank you

In my experience, credits into an account would normally show before debits, however it is a risky game having it all set up within such a tight timescale.

You have the right idea to speak to Lloyds to move your DD for your mortgage, even if it's only a few days or one week, this will help with the budgeting.

In the meantime, until Lloyds change the DD for the mortgage why don't you make a FP from your Halifax account to your Lloyds account on the day you get paid. This is the same process as a SO (so has to be transferred by the end of the next working day at the latest) but this way you can see that the wages have come into the account before you try to process an outbound payment. This can be done over the phone, on internet banking or using the mobile banking app and will take less than 5 minutes but will give you peace of mind.

Once the DD date is changed then set up the relevant SO's on the 1st of each month.

agrinnall

henm2 wrote: »

Apologies. I stand corrected. Taking for example HSBC's general terms and conditions clause 15.2 it does confirm that standing orders do nowadays use the faster payment system and therefore take only 1 day to process and not 3 days.

It struck me after I went to bed last night that 3 day BACS now can't be used for anything as by definition it would breach the Payment Services Directive requirement for payments to arrive by the end of the next working day. I think (although its not an area I know a lot about) that Direct Credits can still use it as although it takes 3 days from the transactions being generated both the debit and the credit actually happen on Day 3.

BMN

agrinnall wrote: »

It struck me after I went to bed last night that 3 day BACS now can't be used for anything as by definition it would breach the Payment Services Directive requirement for payments to arrive by the end of the next working day. I think (although its not an area I know a lot about) that Direct Credits can still use it as although it takes 3 days from the transactions being generated both the debit and the credit actually happen on Day 3.

BACS Direct Credits include standing orders.
Because the debit and credit occur on day 3, BACS Direct Credits would still be legally compliant with the Payment Services Regulations if used for future-dated payments.

I assume the banks don't generally use them because the Faster Payments Service is simpler and less costly.

agrinnall

BMN wrote: »

BACS Direct Credits include standing orders.

...

I assume the banks don't generally use them because the Faster Payments Service is simpler and less costly.

You may be right about DCs including SOs but as they are not generally available to personal customers it's not relevant to this thread nor to most users of MSE.

Banks themselves would have very little need to use DCs. However, their business customers may well still use them as they allow large batches to be processed, something that wasn't possible with FPS when I worked on it (although that was a few years ago, so it may have been added since).

Armorica

BMN wrote: »

BACS Direct Credits include standing orders.
Because the debit and credit occur on day 3, BACS Direct Credits would still be legally compliant with the Payment Services Regulations if used for future-dated payments.

I assume the banks don't generally use them because the Faster Payments Service is simpler and less costly.

This is nonsense. As previously stated, Standing Orders go via Faster Payments (subject to minor exceptions). Bacs Direct Credits no longer include Standing Orders (at least for anything personal customers will ever see)

FPS aren't cheaper. The key difference is that corporate use of Direct Credits, debit and credit on the same day (day 3 of the cycle, and when input a future date is specified).

For those who remember standing orders pre-FPS, the debit was taken on Day 1, and the credit on Day 3. This would breach the PSRs and is why Standing Orders moved to FPS. For personal customers, banks still want to debit SO at the point the payment is initiated.