Chip Savings Deposit Warning!

PloughmansLunch

Band7 said:

PloughmansLunch said:

SVts said:

Also;

1. does anyone know how you find your Chip sort and account number?
2. Is it better to deposit using a bank transfer or by using a card?
Fraud team advised using a card as offers more protection but Chip recommended using bank transfer?
What's the difference please?

#1 You are unable to deposit via standard bank transfer even if you manage to extract the account no. and sort code. I took a screenshot of them when transferred over to the payee bank account in Open Banking.

#2 Transfer by Open Banking is by far the best and quickest/safest, although I use debit card for usage reward requirements for another account. I'm also aware I don't get interest for a couple of days until clearing this way, but it doesn't bother me.

What might you, or others, bother however is that your debit card deposits do not have FSCS protection until cleared. This can take 3 working days.

Absolutely, that's a good point, I should have mentioned that. I only transfer in just over £1 a handful of times so I'm a bit laissez-faire about it, but anyone else sending larger sums via debit card does need to be aware of this.

SickGroove

PloughmansLunch said:

SVts said:

Also;

1. does anyone know how you find your Chip sort and account number?
2. Is it better to deposit using a bank transfer or by using a card?
Fraud team advised using a card as offers more protection but Chip recommended using bank transfer?
What's the difference please?

#1 You are unable to deposit via standard bank transfer even if you manage to extract the account no. and sort code. I took a screenshot of them when transferred over to the payee bank account in Open Banking.

#2 Transfer by Open Banking is by far the best and quickest/safest, although I use debit card for usage reward requirements for another account. I'm also aware I don't get interest for a couple of days until clearing this way, but it doesn't bother me.

What happens if you deposit directly using faster payment via the linked bank account you've already got set up with them?

At about 6am this morning the Chip App was playing up so I directly transferred 5K into Chip using the account details held from a recent Chip transfer into my linked account.

As of 20.20 tonight it still hasn't arrived with Chip! I've spoken to Starling (linked bank) who've confirmed payment was settled immediately and I've got a payment confirmation PDF.

I've tried to speak to Chip via their chat function (which is absolutely useless) and gave up with no one responding after an hour. I've also emailed them with a copy of the payment confirmation PDF.

I would have usually transferred in through the Chip App using open banking but as the app was down when I needed to send the payment I just assumed it would still get there within a couple of hours.

Anyone else been in my situation & if so was the deposit eventually received by Chip or did it just get returned back to your linked account.

Any help / advice appreciated 

Cheers

Band7

You will get your money returned into your Starling account as and when Clearbank get round to processing misdirected payments.

SVts

Band7 said:

SVts said:

Has transferring money every been so hard and stressful!

This morning I transferred £7500 from FirstDirect to Chip. - No problem
This afternoon I transferred another £7500 from FirstDirect to Chip. - the money disappeared from from FirstDirect in an instant but never showed at Chip. It does say it can take up to two hours so I wait. Three hours later still nothing I receive a call from FirstDirect Fraud Team. 30 minutes later they finally accept that the transaction is genuine but only if I admit 100% responsibility and that the money may not be recoverable if lost. Then the transaction is finally approved I am told I have wait up to two hours for the money to show in my Chip account.
I have previously transferred money from FD to Chip and vice versa surely they can see that.

I fully understand and am grateful that they are monitoring transactions but I feel like I have just been involved in a court case and am now a nervous wreck regarding transferring anymore funds and now have to sit with my fingers crossed for the next couple of hours hoping that the money does show up. 

SVts said:

Also;

1. does anyone know how you find your Chip sort and account number?
2. Is it better to deposit using a bank transfer or by using a card?
Fraud team advised using a card as offers more protection but Chip recommended using bank transfer?
What's the difference please?

You should consider a formal complaint with FD, for overzealous fraud controls. I did that with Santander, after they had subjected me to similar nonsense. My complaint was fully upheld, I got some compensation, and I have since not had any issues with my numerous, often substantial 5-figure deposits into CHIP.

Particularly the advice that debit card deposits offer more protection than OB transfers is just totally wrong. Your money is not FSCS protected until cleared into CHIP. With an OB bank transfer, that happens instantly. With a debit card deposit, it takes 3 working days. You also do not get any interest until cleared. I suppose none of this is of any concern to FD...........

You do have a unique [Clearbank] sort code and account number which you can see on one of the screens you see when making a deposit. However, this number is pretty much useless as you cannot do anything with it. Specifically, you cannot make a Faster Payment to it. If you attempt to do so, your money will be returned -  within whatever timescale it takes Clearbank to process erroneous payments

I am pleased that they are monitoring transactions but they put the fear of god into you saying that the money may not be recoverable. Also you have to almost swear on the bible to convince them you are not being coerced in to the transaction. 

I may be a cynic but I cant help but feel that they they are placing hurdles in-front of you as they would obviously like to keep your cash so they can invest it themselves. 

After all we are the customer and it is not a pleasant experience where you are warned that your money may be lost and not recoverable if you continue with the transaction and then to be told that you money will now disappears for a couple of hours whilst the transaction takes place.

I like that they call to check that the transaction is genuine. However once I say yes it is the scare tactics are not needed in my opinion. From the point of me saying yes I can only trust that they send the money to the right place as this is beyond my control. 

grumbler

SVts said:

Band7 said:

SVts said:

Has transferring money every been so hard and stressful!

This morning I transferred £7500 from FirstDirect to Chip. - No problem
This afternoon I transferred another £7500 from FirstDirect to Chip. - the money disappeared from from FirstDirect in an instant but never showed at Chip. It does say it can take up to two hours so I wait. Three hours later still nothing I receive a call from FirstDirect Fraud Team. 30 minutes later they finally accept that the transaction is genuine but only if I admit 100% responsibility and that the money may not be recoverable if lost. Then the transaction is finally approved I am told I have wait up to two hours for the money to show in my Chip account.
I have previously transferred money from FD to Chip and vice versa surely they can see that.

I fully understand and am grateful that they are monitoring transactions but I feel like I have just been involved in a court case and am now a nervous wreck regarding transferring anymore funds and now have to sit with my fingers crossed for the next couple of hours hoping that the money does show up. 

SVts said:

Also;

1. does anyone know how you find your Chip sort and account number?
2. Is it better to deposit using a bank transfer or by using a card?
Fraud team advised using a card as offers more protection but Chip recommended using bank transfer?
What's the difference please?

You should consider a formal complaint with FD, for overzealous fraud controls. I did that with Santander, after they had subjected me to similar nonsense. My complaint was fully upheld, I got some compensation, and I have since not had any issues with my numerous, often substantial 5-figure deposits into CHIP.

Particularly the advice that debit card deposits offer more protection than OB transfers is just totally wrong. Your money is not FSCS protected until cleared into CHIP. With an OB bank transfer, that happens instantly. With a debit card deposit, it takes 3 working days. You also do not get any interest until cleared. I suppose none of this is of any concern to FD...........

You do have a unique [Clearbank] sort code and account number which you can see on one of the screens you see when making a deposit. However, this number is pretty much useless as you cannot do anything with it. Specifically, you cannot make a Faster Payment to it. If you attempt to do so, your money will be returned -  within whatever timescale it takes Clearbank to process erroneous payments

I like that they call to check that the transaction is genuine.

Define 'genuine'

However once I say yes it is the scare tactics are not needed in my opinion. From the point of me saying yes I can only trust that they send the money to the right place as this is beyond my control.

You already said 'yes' once when authorising the translation online.

https://www.which.co.uk/consumer-rights/advice/what-to-do-if-you-re-the-victim-of-a-bank-transfer-app-scam-aED6A0l529rc

Some of us, well known here, fought for this (CRM code for APP scams),  now we all reap the fruits.

SVts

Something else about Chip Bank.

I login using face ID.

1. I honestly cannot remember setting up a password or any security questions!
2. If my phone breaks and I have no access to the app how do I log into Chip or contact them?  

* just noticed that they have their own forum so could come in handy

https://community.getchip.uk/

Band7

SVts said:

Something else about Chip Bank.

I login using face ID.

1. I honestly cannot remember setting up a password or any security questions!
2. If my phone breaks and I have no access to the app how do I log into Chip or contact them?  

* just noticed that they have their own forum so could come in handy

https://community.getchip.uk/

The forum will be for general questions, not account specific ones

You can email them, or try to make contact via Twitter

Beddie

Plenty of concerns voiced on here about Chip - are they safe, fearful of open banking, lack of telephone customer service, do they even pay the right interest rate? Of course they do!

It's clear that you cannot have the highest interest rates alongside a huge call centre and legacy banking systems. Chip do things differently because it's more efficient and they pass on the savings in the form of higher interest rates.

It's not always the best idea to chase the very highest rate if it's gong to cause anxiety. Go with what you feel comfortable with - that's why Nationwide have 10% of the savings market with their mediocre rates. People often know they could do better, but they stick within their comfort zone. Those who chase the higher rates with the more niche companies - me included - should expect to feel a little less, well, comfortable! But also be reassured that actually, Chip are just as safe as anyone else.

Short version - stop worrying about them, or if you can't stop, go elsewhere!

Happy Easter everyone 

dreamypuma

This morning I had the dreaded "failed transfer" issue encountered by OP.

I now have £2.5K sat in limbo after using Open banking Truelayer to transfer. As this is the second time I've had this issue in 6 months, I'm assuming it's a fairly common issue amongst Chip savers, particularly as there are multiple reports of this happening.

Last time this happened the bank I used then, recovered the misdirected funds. Unfortunately this time I used Halifax, who seem to have washed their hands of the situation and referred me back to Chip.

I'm still waiting on Chip's response to my message this morning, however based on past experience, have low expectation and won't be holding my breath.

Does anyone know how frequently Clear Bank reconcile mis-directed payments? How long did others wait for their mis-directed transfer issues to be refunded? 

Furthermore are there preventive measure that I can take to avoid any future reoccurrences?

masonic

dreamypuma said:

This morning I had the dreaded "failed transfer" issue encountered by OP.

I now have £2.5K sat in limbo after using Open banking Truelayer to transfer. As this is the second time I've had this issue in 6 months, I'm assuming it's a fairly common issue amongst Chip savers, particularly as there are multiple reports of this happening.

I think it's very rare actually. In dozens of OB transfers, I've had two instances where there was an apparent error during a transfer. Once the money wasn't debited and I just tried again, and the second time the money arrived in Chip a few moments later despite Truelayer reporting the transaction may have failed. Neither led to any of my money disappearing. A few people do seem to have had issues, but that needs to be set against the number who have not.

That you've experienced the issue twice, with different banks, hints at it being something to do with specific end-user set up (e.g. hardware, internet connectivity etc) that is causing some sort of glitch.

dreamypuma said:

Furthermore are there preventive measure that I can take to avoid any future reoccurrences?

You can now send the money using Faster Payments from your linked bank. You have to connect it to Chip and perform at least one Open Banking deposit as a prerequisite. You then have the option to display inward payment details you can use to push money instead of pull it.