BACS transfer problems

aardvark56

Recently I have had problems (with different banks, same problem) with funding a savings/isa account by BACS transfer. When attempting to do this I get the messsage "This payee account is not recognised, proceed at your own risk. 

On contacting the savings account they say their account is recognised. To summarise, this problem has occurred when funding different savings accounts from different bank accounts.

Clearly I don't want to take a risk but, likewise, I am unable to fund the account. Several companies state that if the account is not funded in seven days, the account will be closed.

Is this a common problem? Such is the level of fraud these days it is becoming difficult to fund your own accounts.

eskbanker

Firstly, you're presumably referring to attempts to pay by Faster Payments rather than BACS (a different service)?

The issue you refer to will probably be the sending of payments to providers who either don't participate in the Confirmation of Payee initiative or who use a different clearing bank to facilitate payments.  If it isn't possible to validate the payee account via CoP then you're effectively stuck with the traditional method of sending a small test payment first, obviously having double-checked the payment details first from the recipient's website.

Who are you sending to and from?

colsten

The only bits of information that count in a bank transfer are sort code, account number and Reference in some instances. Generally, anything that requires the Reference will fail the Confirmation of Payee (COP) checks as this information cannot be checked by the existing processes. 

If the COP fails, you can proceed with your payment at your own risk - which is exactly the same risk you used to take before this COP invention started to confuse so many people. 

If you want to be 100% certain that you are using the correct sort code, account number and Reference, make a payment of £1 initially. Save the payee if it’s not saved automatically in your payee list. Then, once you have confirmed that the £1 has arrived in your savings account, use the same payee again to send larger amounts. In no event will you be unable to fund your savings account because of the COP checking

dunstonh

r. When attempting to do this I get the messsage "This payee account is not recognised, proceed at your own risk. 

Under the new checking procedures, the payee name you type in has to be a close match to the actual account name.  if it isn't then you get this warning.  

With businesses, you often get shortened names or names like abc client account or things like that.  So, it all comes down to the real account name and what you have typed in and the algorithms used by your bank to decipher how close the name is.

 Such is the level of fraud these days it is becoming difficult to fund your own accounts.

It is no more difficult than it has been before.    If you know the sort code and account is correct, you proceed.

elsien

I’ve had this happen. As I was sure the sort code etc were correct  I did proceed at my own risk. I sent £1 as a precaution then the rest when I could see it had arrived safely.

It doesn’t mean you can’t pay it, Just that if it ends up the wrong account it’s down to you. 

Thrugelmir

aardvark56 said:

Recently I have had problems (with different banks, same problem) with funding a savings/isa account by BACS transfer. When attempting to do this I get the messsage "This payee account is not recognised, proceed at your own risk. 

On contacting the savings account they say their account is recognised. To summarise, this problem has occurred when funding different savings accounts from different bank accounts.

Many licensed deposit takers aren't clearing banks in their own right. The account details you are provided with however will be a generic one with a mainstream bank. As the deposit taker will use them to process transactions. 

[Deleted User]

I've had this paying my self in my own savings accounts from current account to another provider - I know the sort code and account and right and reference is correct and the name matches and it still warns. I go ahead fine with the transfer and never had any issues