Bank maximum transfer amounts.

Freebird53

Good morning,

I recently asked in the savings forum if anyone knew of  a bank which did not have a 'silly' restrictions on money transfers. (Bear with me!).

Someone posted a link to a list, which described the limits of a number of institutions, but as pointed out by another poster, it's rather out of date. I've just found this site (perhaps its the same one as previously posted)

https://www.wearepay.uk/what-we-do/payment-systems/faster-payment-system/transaction-limits/

Now, looking down that list, it would appear that the majority of banks have an 'online' transfer limit of £25,000. But an 'In Branch' limit of £100,000 to £250,000!

Thats seems like a very large difference. Begging the question, do these institutions not trust their own online security?

Also, whilst it may be an viable avenue for someone who actually HAS a local branch available to visit, i'm sure many now use online banking because that is no longer the case!

Now, if I wanted to make a transaction to 'Gobbledook & Unknown Partners' I can see where a transfer limit MIGHT be of some use (to supposedly protect me from scams etc)

But when I want to transfer money from an account in MY name, to another account in MY name at different but registered UK financial institutuion, I so not see why ANY transfer limit should apply!

Thoughts?

Slinky

Isn't that what scammers do? Get you to set up an account in your name somewhere else and transfer your money to it?

Freebird53

Slinky said:

Isn't that what scammers do? Get you to set up an account in your name somewhere else and transfer your money to it?

Really? So an account, in my name, at a registered financial institution. Where exactly is the scam?

wmb194

Write a cheque.

eskbanker

Freebird53 said:

But when I want to transfer money from an account in MY name, to another account in MY name at different but registered UK financial institutuion, I so not see why ANY transfer limit should apply!

Via CoP, the sending bank can validate that the recipient's name is the same as the sender's but can't validate that it's the same person, so such transfers aren't differentiated in the way you'd like....

Freebird53

eskbanker said:

Freebird53 said:

But when I want to transfer money from an account in MY name, to another account in MY name at different but registered UK financial institutuion, I so not see why ANY transfer limit should apply!

Via CoP, the sending bank can validate that the recipient's name is the same as the sender's but can't validate that it's the same person, so such transfers aren't differentiated in the way you'd like....

I see, so whats the point of such a feature?

eskbanker

Freebird53 said:

eskbanker said:

Freebird53 said:

But when I want to transfer money from an account in MY name, to another account in MY name at different but registered UK financial institutuion, I so not see why ANY transfer limit should apply!

Via CoP, the sending bank can validate that the recipient's name is the same as the sender's but can't validate that it's the same person, so such transfers aren't differentiated in the way you'd like....

I see, so whats the point of such a feature?

The feature is simply to allow the sender to validate that the name of the payee corresponds with who they believe they're paying, thereby improving security over the scenario where they were duped into sending money to a fraudster's account, but it's a basic name validation service (operating alongside sort code and account number details) and can't actually validate individual identities.

In other words, if you're called John Smith and want to pay John Smith, CoP is just showing you that this is the name on the payee's account, but the bank neither knows nor cares if both are the same person....

Freebird53

I see, then I can't see the likelyhood of a scammer being allowed to set up an account in my name, at a UK financial instution, being very high, can you?

It is of course possible that someone with the exact same name as me, who has passed a banks security checks in order to set up an account COULD have an account with the same name as mine, but how exactly would that person convince me to send them money? I'm mystified.

Ozzig

Freebird53 said:

Thats seems like a very large difference. Begging the question, do these institutions not trust their own online security?

Their own online security cannot check if you have someone standing next to you / online threatening you to transfer money.

In branch, they should be able to tell if the person with you looks intimidating especially when they look at them as they ask if you are being coerced into transferring the money etc

To be perfectly honest I think most banks probably trust their online security more than the people they let use it  

eskbanker

Freebird53 said:

I see, then I can't see the likelyhood of a scammer being allowed to set up an account in my name, at a UK financial instution, being very high, can you?

It is of course possible that someone with the exact same name as me, who has passed a banks security checks in order to set up an account COULD have an account with the same name as mine, but how exactly would that person convince me to send them money? I'm mystified.

That's a strawman argument - I'm not making any claims about the likelihood or feasibility of edge case fraud scenarios, just highlighting the facts that CoP is no more and no less than a name validation service, and that banks correspondingly can't assume that a payee of the same name is the same person, therefore there is no different limit for transfers to an account in the same name.

400ixl

CoP is mainly used for a secondary guard against typo's. It allows the person setting up the payment to check that the account details they have typed in are more likely to be correct as it validates a name as well as the numbers.

It does not in any way guarantee that the account is not fraudulently set up at the other end. It could be set up via identity fraud for example and CoP would not flag that to the payee as it wouldn't be known.

Also, you can set up larger transfers online, you just have to do it through other mechanisms than the faster payments system such as BACS or CHAPS depending on how much you want to transfer.

The article you have linked to is only part of the picture and looking at banks standard self service transfer limits. Not what you can do online via contacting the banks service desk. No need to go into branch.