How long does a standing order payment take to process?

Gaia2014

Hi everyone,

I'm about to set up a couple of standing orders with my bank account. Can somebody please clarify how long it takes to process a payment from the moment the payment leaves my bank account?

Thank you

Cornucopia

It depends on the sending & receiving bank's policies for Faster Payments.

It can credit on the same day, or it can take up to 3 days.

Gaia2014

Thanks. Would iike a payment to be received by the credit card company on the 30th of the month so wonder whether 3 working days will suffice .

Cornucopia

If it's critical to interest or penalties, definitely give it 4-5 days.

If it's to be a regular thing (which Standing Order would imply), then you can tailor future payment dates based on what happens initially.

Be aware of Bank Holidays, though - they can extend the payment schedule by 2-3 days.

jimjames

Gaia2014 wrote: »

Thanks. Would iike a payment to be received by the credit card company on the 30th of the month so wonder whether 3 working days will suffice .

If you're setting SO for credit card, could you use a DD instead? They normally collect on the day payment needed.

dzug1

The 30th is not a good day for a standing order - things can go wrong at weekends and holidays, not to mention months like February

Gaia2014

Thanks. The 30th is the date the company want payment by. I was thinking of setting the SO up for 3-5 days prior to the 30th.

I will probably arrange a DD with them. I prefer SO though because I am in control of setting it up and how much I pay etc. Rather than a fixed amount and more convenient than sending a cheque etc...

eskbanker

Check what the card provider's Ts & Cs say about timescales too - it's not just about the time it takes to reach them as an institution but how long to allow for the money to actually be credited to your card account once it's there.

Gizmo247

If you are not going to clear the balance in full every month (and if not then ask yourself "Is a credit card really for me?") then setup a DD for the minimum payment and setup your SO for any additional amount. That way, you avoid any chance to late payment and still accomplish what you require.

agrinnall

As Gizmo says, although personally I'd do the minimum DD and a manual payment for however much else you want to pay rather than having to amend a SO every month.

Gaia2014

Thanks for the helpful replies. I think I will go with the DD method of payment and as somebody suggests set a SO up if I wish to make an additional payment. I will check with my bank re: timescale for processing funds... Don't actually use any the credit cards anymore - paying them all off.