My company say they pay through BACS, but it's actually done through Faster Payments

matthewjohnstone

Hey guys,

I've recently started a new job and I have noticed that I've been getting paid through Faster Payments rather than BACS. Honestly, it wouldn't bother me too much, but it now means that I don't get paid a day early with Monzo. I've emailed the payroll department and they say it's definitely BACS, but I've phoned Monzo and they're certain it's Faster Payments. Seems a bit shady on my employer's end if I'm honest. Are there any avenues I can go down to dig deeper into this?

Thanks 

Penguin_

Are you paid on the date that is in your contract?

Comms69

matthewjohnstone said:

Hey guys,

I've recently started a new job and I have noticed that I've been getting paid through Faster Payments rather than BACS. Honestly, it wouldn't bother me too much, but it now means that I don't get paid a day early with Monzo. I've emailed the payroll department and they say it's definitely BACS, but I've phoned Monzo and they're certain it's Faster Payments. Seems a bit shady on my employer's end if I'm honest. Are there any avenues I can go down to dig deeper into this?

Thanks 

It literally makes not a blind bit of difference in terms of law. 

KatrinaWaves

Shady? That they pay you on payday and your bank doesn't put it in sooner? get a grip.A day shouldnt make that much difference to you, and if it does, head on over to the debt free wannabe board for budgeting advice if you need your pay a day early.

Fun fact, if it falls on a weekend you'll get it early. Or a bank holiday, woo, three days early!

[Deleted User]

If you are paid what is owed and you receive it on the day your contract specifies then what’s the problem? 

If you can’t get it a day early through Monzo that’s not your employers issue, they are paying you as they should be it’s no concern to them. 

TELLIT01

There is absolutely nothing shady going on.  You are being paid on the due date.  The employer is retaining the money in their account as long as possible which is showing financial prudence, nothing else.  You have no right to have access to your wages any earlier than your contracted date.

Dox

Faster payments is, as the name suggests, designed to be quicker - in this case quicker than an 'ordinary' BACS payment. Read https://www.barclays.co.uk/help/payments/payment-information/bacs-chaps-faster-payments/

nick74

The payroll department possibly think they are paying through BACS. People don't neccessarily know the difference, and the term 'BACS' is sometimes used generically in businesses to refer to any sort of bank transfer. As others have said though as long as you are being paid on the due date its really not any concern of yours.

Penguin_

Also I doubt if the payroll team actually execute the payroll into employees bank accounts. I imagine the data would be sent to the finance team, in a CSV file or similar, who will upload to their bank's online portal. 

cool-dog

To be fair on them, they are correct.
Faster payments are part of the BACS system, BACS is a company and this is one of their services.
Faster payments will be costing the company a few more pence per payment than by using BACS, and they lose the ability to recall the payment easily if they make an error, as with BACS they can request return of the money up to midday before payment is due in the recipients account.

As others have said, they aren't doing anything wrong, you are not 'entitled' to receive your money early, yes it is nice. I am with NatWest, If payday fell on a Monday I would always receive the money on the Saturday, but they changed their systems so this isn't the case anymore.

TELLIT01

BACS payments used to take up to 3 days to go through the system, which is why it would often show in the receiving account before the actual due date.  I understand that even BACS payments now generally take less than 3 days and many companies don't release the payment until the day before the recipient should get the money.