Standing Orders - BACS or Faster Payments?

cardi_b

Does anybody know if different banks are using a different payment scheme when it comes to Standing Orders?

I ask because I notice with Barclays, I can only set the first payment on a Standing Order to be 3 days from today, which is typically in line with BACS clearing times.

On the contrary, Monzo will allow me to set up the first payment on a Standing Order to be today if I wish.

I generally thought everybody did it via Faster Payments, now I am intrigued.

masonic

Even in the days before Faster Payments, the date of a Standing Order was the date it would leave your account, not the date it would arrive with the recipient. Standing Orders are typically processed overnight, on a working day, so it wouldn't normally be possible to set up a new one to pay today or tomorrow on a Sunday evening.

jonnygee2

They all use faster payments, as far as I know. A standing order is just a faster payment scheduled for a specific time.

The older banks just have much worse IT systems, they are creating files in advance which are then processed. Many used to use BACS and have built their SO system around the BACS process, then moved over to faster payments - so they still don't send them on weekends, for example.

But the challenger banks have much smoother IT systems with this kind of stuff built in from the beginning which is why you can set them instantly and on whatever day you want.

phillw

jonnygee2 wrote: »

They all use faster payments, as far as I know. A standing order is just a faster payment scheduled for a specific time.

Faster payments only have to arrive by the end of business the following day.

I would hope no bank is deliberately taking the money out of your account first thing in the morning and then putting through a transaction late the following day.

masonic

phillw wrote: »

Faster payments only have to arrive by the end of business the following day.

I would hope no bank is deliberately taking the money out of your account first thing in the morning and then putting through a transaction late the following day.

I'm not following your logic. How have you gone from the transaction being scheduled in the future to the money being debited early?

jonnygee2

Faster payments only have to arrive by the end of business the following day.

Faster payments are, almost universally, instant. The money arrives as soon as it's debited (give or take a few seconds).

JuicyJesus

jonnygee2 wrote: »

Faster payments are, almost universally, instant. The money arrives as soon as it's debited (give or take a few seconds).

The scheme specification is that payments arrive usually within two hours but can take one working day.

pinkdalek

That's just Barclays system/policy/setting up it's sod all to do with BACS

jonnygee2

The scheme specification is that payments arrive usually within two hours but can take one working day

.

I'm very aware of the scheme spec. But go and send one to someone and see how long it takes - you'll find in practice they are pretty much all instant :-)

Certainly not 'next business day', anyway.

masonic

I've had one instance of a FP not being instant in about 8 years(?) of use. I send at least 9 per month between accounts in my name, so about 99.9% were instant. Perhaps that's an unfair sample as these payments are less likely to be subject to fraud checks, but they are the only ones for which I can reasonably verify arrival times.
(I'm not including payments I attempted to send from TSB during their meltdown)

Flobberchops

pinkdalek wrote: »

That's just Barclays system/policy/setting up it's sod all to do with BACS

That's odd because in branch Barclays employees are able to set up SOs from the next working day.