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Standing Orders

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  • nickcc
    nickcc Posts: 2,265 Forumite
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    jonnygee2 wrote: »
    I don't think you are talking about standing orders?

    Basically, in the UK there are two main payment schemes for consumers:

    BACS - Used for direct debits, benefits payments and the vast majority of salary payments. Also used by Paypal and some other online stores. BACS credit / debits only process on working days, payments take three working days to complete.

    Faster Payments - Used for 1-1 bank transfers. Normally instant, 24/7 service.

    A 'standing order' isn't a payment scheme, it's just a faster payment that's scheduled to leave at a regular date. A standing order should leave your bank whenever you've set it to leave, and arrive instantly.

    I think what you are talking about is BACS payments (e.g. direct debits or salaries). These are working day only, and this is part of the payment scheme specs.
    My original question was certainly a standing order as I had set it up and it still shows as a standing order and it is definitely not being paid over a weekend or bank holiday. I also use BACs, Direct Debits and faster payments so realise how they operate.
  • jonnygee2
    jonnygee2 Posts: 2,086 Forumite
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    My original question was certainly a standing order as I had set it up and it still shows as a standing order and it is definitely not being paid over a weekend or bank holiday.

    In that case, this must be Lloyds. So, I imagine the answer is that they must still do some manual processing of standing orders, which is why they can't send them at weekends etc. Pretty unbelievable that big banks still do so much manual processing, but their IT systems are not always as sophisticated as people think.
  • colsten
    colsten Posts: 17,597 Forumite
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    jonnygee2 wrote: »
    A 'standing order' isn't a payment scheme, it's just a faster payment that's scheduled to leave at a regular date. A standing order should leave your bank whenever you've set it to leave, and arrive instantly.
    AFAIK, SOs are processed through the Faster Payment technology BUT this doesn't necessarily mean their payment gets triggere at weekends or bank holidays.
    jonnygee2 wrote: »
    In that case, this must be Lloyds. So, I imagine the answer is that they must still do some manual processing of standing orders, which is why they can't send them at weekends etc. Pretty unbelievable that big banks still do so much manual processing, but their IT systems are not always as sophisticated as people think.
    No, there is no manual processing involved in regular standing orders. The vast majority of UK current accounts do not process SOs at weekends and bank holidays, as has already been talked about in this thread. The only notable exception I know of is Tesco, who process them 7 days a week, which can cause a certain amount of chaos for people who aren't aware that Tesco deviate from the rest of the pack. There might also be some of the challenger banks who do SOs on 7 days, but I have never looked into them for SOs. Perhaps someone who uses them can comment
  • jonnygee2
    jonnygee2 Posts: 2,086 Forumite
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    No, there is no manual processing involved in regular standing orders.

    How sure are you of that? There are a lot more manual processes than most people think there are in main banks! But if there's no manual process the only other reason would be a legacy thing.
    There might also be some of the challenger banks who do SOs on 7 days

    I think they all do? Monzo, Starling, Metro bank definitely.
  • colsten
    colsten Posts: 17,597 Forumite
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    nickcc wrote: »
    As the SO is used to transfer monies from one bank to another where the accounts are both ours then we are the ones where interest is not being made, Lloyds current account does not pay interest where Santanders does.

    I am using most of my SOs for very similar purposes to you. I am massively please that all bar Tesco operate on the same rules, i.e. no SOs at weekends and bank holidays, as I can schedule SO-in and SO-out on the same date, without having to worry that I don't have enough money in the accounts for the SO-out payments, or for the internal transfers (e.g. from FD current account to FD Regular Saver).

    How much interest have you lost because your SOs were not processed at weekends and on bank holidays?
    nickcc wrote: »
    The delayed payment system also means that monthly salaries/pensions can also be delayed by up to three days if you include bank holidays.
    That's nothing to do with SOs. Your salaries/pensions get paid by BACS, on the date your employer/pension provider asks the bank to pay it.
  • polymaff
    polymaff Posts: 3,950 Forumite
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    nickcc wrote: »
    As the SO is used to transfer monies


    SOP is not a transfer system. The SOP requests an FPS transfer. As (officially) SOPs only execute on working days they request a transfer on working days
  • pinkdalek
    pinkdalek Posts: 1,355 Forumite
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    If it bothers you so much why not ask Lloyds directly, surely they will be the obvious candidates to give you an explanation. I mean it's not like they have nothing else better to do with themselves.
  • Fingerbobs
    Fingerbobs Posts: 1,702 Forumite
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    Fingerbobs wrote: »
    A few times, I've had transactions complete on a Bank Holiday Monday following a weekend, which is even more baffling.
    Standing Order scheduled to leave my Tesco Current Account on Sunday 5th April went through on Bank Holiday Monday 6th.
    If it can go through on a bank holiday, why can't it go through on a saturday or sunday?
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    I have read somewhere that sometime soon all banks will be operating on a 7 day basis for debit card transactions and standing orders and faster payments etc.
    (Can't find the article at the moment).
  • tempus_fugit
    tempus_fugit Posts: 1,189 Forumite
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    Fingerbobs wrote: »
    Standing Order scheduled to leave my Tesco Current Account on Sunday 5th April went through on Bank Holiday Monday 6th.
    If it can go through on a bank holiday, why can't it go through on a saturday or sunday?
    None of mine have ever gone through on a bank holiday. If they were delayed by the weekend then they will be delayed by a bank holiday. I suppose it depends on the bank you are with so so maybe you should ask them.

    One thing I've noticed with Santander is that, generally, money to come out of the account is delayed until the next working day, and money that is due to be paid to me, such as interest or cashback, is paid early if the normal payment date falls on a weekend or a bank holiday. It can cause a bit of confusion with balancing accounts, but it seems to be pretty consistent.
    Retired at age 56 after having "light bulb moment" due to reading MSE and its forums. Have been converted to the "budget to zero" concept and use YNAB for all monthly budgeting and long term goals.
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