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Be careful when you use Santander Bank CHAPS service
No_Santander
Posts: 23 Forumite
I just would like to share my recent experience with Santander bank with you.
I think potentially, it can happen with other bank as well.
So be careful when you use CHAPS payment service. It is simply not a guaranteed next day service, as you bank can only guarantee money arrived at the agent bank of payee, but not payee's account at his bank. You'd better let the payee check with his bank first before sending it.
I recently sent a CHAPS payment from my bank to Mr. X’s bank account at Santander.
On Day 1, CHAPS payment was made by my bank, but Santander did not value the payment to payee’s bank account.
On day 2, My bank contacted Santander CHAPS control team aiming to track down the transaction. The response from Santander to my bank was that the transaction was cleared and the fund has gone to compliance department. Later on the same day, Mr. X called Santander with CHAPS transaction number trying to locate the money as it is supposed to be for urgent need. Santander denied saying there has not been any money transfer from My Bank on 10th March, which is completely different from the statement they made to My Bank.
On day 3, My Bank contacted Santander again, the reply was the same saying the money was being withheld at compliance department. However, both Mr. X and I approached Santander afterwards, Santander still deny there was any transaction from My Bank. As we consider this fund lost, I filed recall on the CHAPS payment by 1300, soon after Santander got the SWIFT message, the fund showed up in Mr. X’s bank account with value date day 3 (but same day service should be day 1!).
Given that I have not sent any money to Mr.X’s bank account on day 3, Mr. X called Santander asking for more details on the transaction, including value date, payment method. Santander claimed beside name of payer, they don’t have any other information about the transaction. They don't even confirm the payment arrived at santander by CHAPS!
I do personally think Santander failed a few regulations including PSR 2009, CHAPS Rule book, FSMA 2000, Data Act, FOI act. But I am not law expert, so I won't say much here.
All in all, please be careful before you use CHAPS services, especially Santander bank.
I think potentially, it can happen with other bank as well.
So be careful when you use CHAPS payment service. It is simply not a guaranteed next day service, as you bank can only guarantee money arrived at the agent bank of payee, but not payee's account at his bank. You'd better let the payee check with his bank first before sending it.
I recently sent a CHAPS payment from my bank to Mr. X’s bank account at Santander.
On Day 1, CHAPS payment was made by my bank, but Santander did not value the payment to payee’s bank account.
On day 2, My bank contacted Santander CHAPS control team aiming to track down the transaction. The response from Santander to my bank was that the transaction was cleared and the fund has gone to compliance department. Later on the same day, Mr. X called Santander with CHAPS transaction number trying to locate the money as it is supposed to be for urgent need. Santander denied saying there has not been any money transfer from My Bank on 10th March, which is completely different from the statement they made to My Bank.
On day 3, My Bank contacted Santander again, the reply was the same saying the money was being withheld at compliance department. However, both Mr. X and I approached Santander afterwards, Santander still deny there was any transaction from My Bank. As we consider this fund lost, I filed recall on the CHAPS payment by 1300, soon after Santander got the SWIFT message, the fund showed up in Mr. X’s bank account with value date day 3 (but same day service should be day 1!).
Given that I have not sent any money to Mr.X’s bank account on day 3, Mr. X called Santander asking for more details on the transaction, including value date, payment method. Santander claimed beside name of payer, they don’t have any other information about the transaction. They don't even confirm the payment arrived at santander by CHAPS!
I do personally think Santander failed a few regulations including PSR 2009, CHAPS Rule book, FSMA 2000, Data Act, FOI act. But I am not law expert, so I won't say much here.
All in all, please be careful before you use CHAPS services, especially Santander bank.
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Comments
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I recall seeing another user who had this issue with Santander.0
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Why did you use CHAPS rather than Faster Payment?0
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large amount, wanted the money to arrive on the same day.0
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Huge delay CHAPS from Santander last month.I recall seeing another user who had this issue with Santander.Are you for real? - Glass Half Empty??
:coffee:0 -
From my experience, the internal organization of this bank sounds very messy.
You are not allowed to talk to people who is actually dealing with your issue but "customer service team"
So you end up spend tones of time talking in this format
"I talked to my colleague in back office and he said ......"
" sure but that is not what I mean, can you check ...."
repeat above 5 times, hold 5 mins, then repeat above again 5 time.
"can you put me through to the guy who is working on this"
"they are back office and are not going to talk to customers"0 -
CHAPS and SWIFT numbers are mentioned - was this a UK payment or a foreign one?0
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CHAPS = Clearing House Automated Payment System
SWIFT =Society for Worldwide Interbank Financial Telecommunication
when you Join CHAPS for stirling clearance, in the rule book it is said you will be joining SWIFT as well as it is used as a interbank communication system.
Both has nothing to do if it is foreign or local.0 -
No_Santander wrote: »CHAPS = Clearing House Automated Payment System
SWIFT =Society for Worldwide Interbank Financial Telecommunication
when you Join CHAPS for stirling clearance, in the rule book it is said you will be joining SWIFT as well as it is used as a interbank communication system.
Both has nothing to do if it is foreign or local.
Actually it is sterlng not stirling.
We do not use SWIFT codes for payments between UK banks.0
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