A hassle with a transfer transaction from my HSBC account

welshmike_2

Yesterday I did an online transfer from my HSBC account to another bank account I have.

The amount was deducted from my HSBC account immediately but some 26 hours later had not arrived at (my) the payee account.

I was on the phone to HSBC customer service this morning for the best part of an hour by going through their cumbersome process and was told that the transfer was held up by their fraud department.

A little later I was told that the transfer had been released and should be in my payee account within 2 hours.

Not so.

This afternoon I received a text message and a message on my landline answerphone with the same information to call the HSBC Fraud number giving a reference number in the message.

I called and the HSBC person whose English was difficult to understand said that she did not recognise the referece number I stated. She then asked for my HSBC bank sort code and account number. I immediately was suspicious that I was being a subject of a scam possibly to empty my HSBC account so I terminated the phone call.

I also considered the possibility of a man-in-the-middle intercept of my online transaction made yesterday.

I then called HSBC customer service through that cumbersome process and arranged to be transferred to speak to the Fraud department.

After the best part of another hour on the phone HSBC Fraud said that they were releasing the transaction right then and it would take up to 2 hours to be credited to my payee account. Note that I been told the same this morning.

Some 27 hours after the transaction left my HSBC account it has just now arrived at my payee account.

Given the unsatisfactory service that I received from HSBC in switching to them in June I find that their whole service more than unsatisfactory and am considering cancelling my account with them.

gt94sss2

Worth noting that - by law- any financial institution has until the end of the next working day to process a transfer request to another account.

Many financial institutions use this period - as you have discovered - to investigate payments which have been flagged by their systems as suspicious, unusual or even just the 1st/2nd time a payment is made to a new payee.

So if you made a payment request on Tuesday, they had until the the end of Wednesday to transfer the money - and would have done so even if you hadn't called (unless they felt it was illegitimate).

welshmike_2

Would I be being cynical if I thought that HSBC used the value of the transfer to make a little on the overnight money market?

Fosterdog

Less cynical more paranoid considering how low interest rates are right now.

If the value was that high I'm really not surprised it was held as possible fraud when you only opened the account in June and now just a month later you are transferring a large sum of money.

welshmike_2

with a much larger deposit from another bank account.

It couldn't be money laundering could it "I don't believe it " https://www.youtube.com/watch?v=mLNrLI3OBwg

gt94sss2

Was this the first/second time you had transferred money to this other account - or was the amount being transferred higher than usual - or had you made multiple transfers to that account recently?

Any of these reasons would be enough to flag up a payment as requiring further checks..

HSBC don't need to hold on to your money to make a 'little on the overnight money market' - however much money you have in the account, it wouldn't be material to them.

On the other hand, they have suffered fines of billions of pounds in the past for not being rigorous enough when carrying out money laundering/id checks so you can expect them to worry more about this than some others.

welshmike_2

I had transferred as my first transfer a small test amount of £1 previously the same evening to be sure that everything worked.

I have found that HSBC's security checks rather overwhelming especially compared with my other bank accounts but now somewhat understandable given your last paragraph.

gt94sss2

welshmike wrote: »

I had transferred as my first transfer a small test amount of £1 previously the same evening to be sure that everything worked.

A lot of banks will block a second payment to a new payee if done shortly after/the same day as the first one.

I know many people like to do this to ensure they set up the payee details correctly and by sending a test payment, but its also the classic behavior of someone who has managed to 'high jack' an account.

If you search these forums, you will find instances of Santander, TSB, Lloyds, Natwest etc. all doing the same.

Best to make the test payment and then wait a day or two if you're worried about the amount being held up - in the end the banks allow it to go through (though sometimes they will contact you to check its correct)

I have found that HSBC's security checks rather overwhelming especially compared with my other bank accounts but now somewhat understandable given your last paragraph.

Yes - they are very keen to avoid repeats of this sort of event (even though that wasn't HSBC UK).

On the bright side, they are well run enough to be one of the few banks who didn't need a government bailout a few years ago..

Lokolo

So you moved to them in June (a month ago), then have made a couple of very large transfers of money in and out, and then get annoyed when they investigate for fraud?

Really?

Maybe if you had used your account for more than a month they wouldn't be doing those checks, but to me you look like a prime candidate for money laundering so I am not really surprised and if anything I am glad!

gatters

I also received a call from their fraud department, with poor English and hasty questions. I can see why it could be viewed as suspicious but it must happen to almost everyone. I transferred in the precise monthly amount required in the account terms and then returned it to the same account.

The switch bonus has arrived promptly though.

Blackbeard_of_Perranporth

welshmike wrote: »

Would I be being cynical if I thought that HSBC used the value of the transfer to make a little on the overnight money market?

Banks are there to make money from you. If you do not like this, hide your cash under the mattress.


As said above, if this was a new payee, their checks may prevent someone from being defrauded. Count yourself as lucky these checks are in place. My bank does the same and limits the amount for the first transaction.