Why Do Banks Take Debits Before Credits???

dunstonh

It is done that way as it is standard accountancy.

It only applies to how they are listed on the statement. Not for charges or a way to get you charged.

[Deleted User]

They do it to as a way to make money from illegal bank charges, the bank doesnt need to settle in the duration they fined you.

One of my mates is a programmer, hes done a project work for a big bank before. The whole system of finings completely automatic and decided upon by the bank. But not all banks has this debit-credit 1 day diff trick built into their systems IIRC the aussy banks such as yorkshire and clydsdale dont, but then again they are uncompetitive in other ways.

Thomas_Crown

I've just checked my LTSB current account balance etc online at 1824 Hrs. & tomorrows electronic transactions have already been processed & are showing on the online statement as 3rd September.

There is one BGC followed by 3 x D/D so LTSB still put the credits into the account first & then subtracts the debits.

butch_dingle_2

CLAPTON wrote: »

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

Actually in my experience with Natwest, this is not always the case - I once tried to make a large cash withdrawal at branch, the day my salary was paid in, and part of this withdrawal was my salary credit - I was told to come back after 2.30pm , as it was possible for a salary payment to be recalled up to that time.

dunstonh

Thomas_Crown wrote: »

I've just checked my LTSB current account balance etc online at 1824 Hrs. & tomorrows electronic transactions have already been processed & are showing on the online statement as 3rd September.

There is one BGC followed by 3 x D/D so LTSB still put the credits into the account first & then subtracts the debits.

When I was a Lloyds many years ago when Saturday opening was new and rare, we used to be able to get what was called a printout 10 which showed electronic payments that were going through on Monday morning. Those payments (credit or debit) would affect the available balance. So on Saturday you were able to draw against an electronic credit going in on Monday.

Stephen_Leak

On my A&L account online statement, I can have a credit entered and then, if a debit is processed the same day, it is put in front of the credit and the running balance altered accordingly. Fortunately, I don't "fly close to the wind", so this only causes paranoia, not a problem.

knowledgeman

Thomas_Crown wrote: »

I've just checked my LTSB current account balance etc online at 1824 Hrs. & tomorrows electronic transactions have already been processed & are showing on the online statement as 3rd September.

There is one BGC followed by 3 x D/D so LTSB still put the credits into the account first & then subtracts the debits.

A lot of banks dont update for these sort of things on sunday/monday midnight therefore any transactions due on the monday go on the friday/saturday night

Its not unusual

If you ever have transactions due on a saturday, sunday or monday Id always ensure the money is put in by COB on the thursday to be sure

Likewise if you had been paid on monday the funds would have been available earlier, but I bet no one complains about that:rolleyes:

masonic

That's just a different way of running the books. The net result is just that the customer has to run their finances a day early around weekends. I find those sort of practices extremely annoying as it means you have to allow an extra days buffer between credits and any automated payments.

molerat

Stephen_Leak wrote: »

On my A&L account online statement, I can have a credit entered and then, if a debit is processed the same day, it is put in front of the credit and the running balance altered accordingly.

Earlier this week I transferred some money from my A&L savings account to my current and immediately out to another bank. It still shows in the order it happened, credit first and debit last. :eek:

I have often gone several £K od during the day but never been charged.

Stephen_Leak

molerat wrote: »

Earlier this week I transferred some money from my A&L savings account to my current and immediately out to another bank. It still shows in the order it happened, credit first and debit last. :eek:

I have often gone several £K od during the day but never been charged.

Its interesting that the credit involved was an "all A&L" transaction. Analysing my statement, the only time I have had a credit and then a debit on the same day was when my "Refer A Friend" payment was credited.