Why Do Banks Take Debits Before Credits???

divadee

Just a vent really that totally annoys the hell out of me.

I looked yesterday and mr divadees wages had gone in at midnight on the 31st. At about 11am we transferred £350 to our savings account as that was the surplus we had left over.

I check our bank today and they have changed the order of the statement so on the 31st it reads that we went £350 overdrawn and then got paid our wages all on the same day. We have a 1500 overdraft so not a problem but it just really riles me that no we did not go overdrawn the money had been in our account nearly 12 hours before we transfered it :mad:

why do they do this? it should surely be times transactions not just on the date, and what would of happened if we didnt have an overdraft facility? would we of been charged?

does this happen with anyone elses bank? we are with barclays by the way.

RayWolfe

Don't forget that every debit is also a credit somewhere else. There has to be an order agreed by all institutions involved.
All T&Cs say that credits must be received the banking day prior to a a DD or SO. If you have an OD facility there will be no consequences.
Where is the problem?

squeaky

My bank tends to "list" debits before credits, so if I'm close to my margin I can "appear" on the statement to be overdrawn on that day.

I've never been charged for such an overdraft.

Maybe it's just the way your lot do their paperwork too?

masonic

As squeaky says, many banks reorder transfers in statements so that the debits are listed first. If it was showing in your available/cleared balance when you did the transfer, then you shouldn't have any problems.

Dylanwing

Back in my days (20 years ago), the only balance that counted was 'close of business', and you checked for funds paid in before returning any item, so funds paid in on the day were acceptable. Unfortunately, automation and 'battery farm' returns units have made things more 'efficient', but also brought about this loss of service. So, it costs the Bank less, offers worse customer service, for which the customer pays more... And people wonder why I am so cynical about the Banks!

Rosemary7391

I've never had a problem taking money out on the same day I am paid, and I am not allowed to go overdrawn, so how does that work?

CLAPTON

paid, as in salary, is usually cleared funds and so is immediately available (your company actually pays the money several days in advance).

Thomas_Crown

Electronic payments such as standing orders/direct debits/salary payments can be processed at anytime after 9.30pm on the day before the official transaction date.

I have logged onto my LTSB current account at 10pm on a Sunday evening & Mondays electronic transactions have already been showing on my account. LTSB used to have a policy of always listing credits first, then debits but I don't know if that is still the case. I will check my current account this Sunday evening to see what happens with payments due on the 1st & 2nd September which should actually be paid on the 3rd of this month.

Salary payments have to be available at 12.01am on the due date or the first working day thereafter. However some employers will pay salaries one or two days early if pay day falls on a weekend providing that doesn't mean payment falling in the preceding month. ie:salaries due on the 1st/2nd September are unlikely to be paid on the 31st August.

icefall

divadee wrote: »

Just a vent really that totally annoys the hell out of me.

I looked yesterday and mr divadees wages had gone in at midnight on the 31st. At about 11am we transferred £350 to our savings account as that was the surplus we had left over.

I check our bank today and they have changed the order of the statement so on the 31st it reads that we went £350 overdrawn and then got paid our wages all on the same day. We have a 1500 overdraft so not a problem but it just really riles me that no we did not go overdrawn the money had been in our account nearly 12 hours before we transfered it :mad:

why do they do this? it should surely be times transactions not just on the date, and what would of happened if we didnt have an overdraft facility? would we of been charged?

does this happen with anyone elses bank? we are with barclays by the way.

I notice that money that goes in on the same day is always bottom of the list on my statement and debits at the top. Barclays for me too btw.

Stupid isnt it, no common sense there at all.

divadee

thanks guys glad its not just us.

the salsry was cleared funds as mr divadee is always paid at midnight on the last day of the month. If if that day is a weekend, the last working day of the month. So it wasnt about cleared funds.

Thomas Crown we have the same as you. When i checked online banking yesterday all our debits for tomorrow had already come out such as mortgage, gas, elec etc.... so i think that must be all banks that do that.

divadee

squeaky wrote: »

My bank tends to "list" debits before credits, so if I'm close to my margin I can "appear" on the statement to be overdrawn on that day.

I've never been charged for such an overdraft.

Maybe it's just the way your lot do their paperwork too?

thats exactly what happens with us squeaky.