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Starling to stop debit card funding, any alternatives?

From September 14 Starling are stopping debit card funding. I think some newer customers never had this facility but it does come in handy.

Are there other banks which accept debit card funding? I have a Revolut account and they do.

Comments

  • eskbanker
    eskbanker Posts: 35,364 Forumite
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    The date presumably signifies that it's not a coincidence that it's happening on the same day that further aspects of the Payment Services Regulations 2017 come into force* - most of the attention has been on the strong customer authentication element that will mandate two-factor authentication for most online transactions, which would include debit card payments to other institutions. It's not immediately clear to me exactly how that would correlate with Starling withdrawing support for debit card funding but if there are any other proper fully-fledged bank accounts accepting these then they may well be withdrawing the facility too.

    To be honest I'm struggling to visualise the circumstances where it wouldn't be acceptable to use faster payments to shift money from one bank account to another rather than using a debit card?


    * Implementation has officially been delayed, as of yesterday, but the 14 September deadline has been widely publicised for a long time.
  • Faster payments is fine most of the time. I don't have mobile banking setup for all my bank accounts so sometimes it is easier to add funds to Starling from a debit card.

    It's a useful facility but by no means essential.
  • anotheruser
    anotheruser Posts: 3,485 Forumite
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    Debit card funding?
  • jonnygee2
    jonnygee2 Posts: 2,086 Forumite
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    Using a debit card to top up a bank account causes no end of issues for the banks. Namely:

    1) It costs them money each time you do it

    2) It must cause a huge problem with fraud - anyone can set up a bank account there, then transfer money in from stolen debit cards, and this must be very expensive/difficult to police

    3) It contradicts the main aim most banks have of encouraging people to deposit their salaries into the account and encourages use as a 'cash card' (an expensive and generally less desirable customer type).

    I'm surprised Starling have sustained this for so long.
  • glider3560
    glider3560 Posts: 4,115 Forumite
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    The only time I've used this feature is when a friend from abroad needed to send me some money.

    Rather than pay their bank's exchange and transfer fees (or use a broker), they just made the payment to my account by debit card using a card that doesn't charge overseas fees. Money arrived in my account in GBP immediately, and they got the Visa exchange rate.

    Other than that, I can't actually see any other reason why you might want to fund by debit card.
  • Murmansk
    Murmansk Posts: 1,075 Forumite
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    So does this mean I won't be able to get people to pay me by going to my page on Starling's website and using their debit card? I think they call it Settle Up.
  • SnowTiger
    SnowTiger Posts: 4,461 Forumite
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    You recently used your debit card to top up your Starling bank account. We’re sorry to say that as of 14th September 2019, you won’t be able to do this anymore – as we’re removing debit card funding. Over the past few years, Starling’s changed a lot – and our customers have, too. Debit card funding isn’t as popular anymore.

    You can top up by bank transfer or cash deposit (at the Post Office – more on this here). Alternatively, you can get your salary paid directly into Starling or fully switch over to us via the Current Account Switch Service (CASS). To find out how to use CASS and whether you’re eligible, click here.

    To set up a transfer from another bank, you’ll need your sort code and account number – both of which can be found in the Starling app.

    The language and punctuation are a bit choppy.

    Written by someone who likes commas and dashes.

    This announcement is a bit of a Curveball. :(:wink:
  • sal_III
    sal_III Posts: 1,953 Forumite
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    eskbanker wrote: »
    To be honest I'm struggling to visualise the circumstances where it wouldn't be acceptable to use faster payments to shift money from one bank account to another rather than using a debit card?
    There is a nifty feature in the app that you can request money from someone, it will generate a web link that you send via text/e-mail. If the person has Starling it will open the app on their device, if they don't or the link is opened on non-mobile it will allow payment with debit card. Either way no need to give your account number. Useful for splitting bills etc. I think there was a £50ish limit on debit card payments.

    Never used it myself, but could see how it can be useful in some situations.
  • eDicky
    eDicky Posts: 6,835 Forumite
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    eskbanker wrote: »
    To be honest I'm struggling to visualise the circumstances where it wouldn't be acceptable to use faster payments to shift money from one bank account to another rather than using a debit card?
    Very useful if your (other) bank's online access is completely down, such as with TSB last year, but the debit card still works to move some of your money to Starling.
    sal_III wrote: »
    I think there was a £50ish limit on debit card payments.
    It's £50 minimum to add funds by debit card, £250 daily maximum. Monzo had similar facility, but long gone.
    Evolution, not revolution
  • hgt
    hgt Posts: 336 Forumite
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    The following banks still allow deposits via Debit Card, there will be many more, but these are the ones I'm aware of:-

    Post Office (Online Saver)
    KRBS (all online accounts)
    Yorkshire Building Society (all online accounts)
    NS&I (Direct Saver / Premium Bonds)
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