How can some banks do instant transfers and others not

pshannon

The usual excuses given for not being able to transfer money instantly may be valid, but then, how come some banks manage it?  I tend to choose those banks that offer genuinely instant transfers, so why do the others follow suit?

SiliconChip

The only banks that are able to make instant payments are those that are full participants in the Faster Payments System (see list here). https://www.wearepay.uk/what-we-do/payment-systems/faster-payment-system/payment-system-participant-list/

However, that doesn't mean that all of them will do instant payments, some will aim to do the transfer within 2 hours, some will send payments at certain times of day, and some (probably not too many full members) will simply adhere to the rule that payments have to arrive by the end of the next business day. How they do it is a commercial decision, if you don't like what a particular bank does then don't use them, if enough people follow you then they may change the way they work.

35har1old

SiliconChip said:

The only banks that are able to make instant payments are those that are full participants in the Faster Payments System (see list here). https://www.wearepay.uk/what-we-do/payment-systems/faster-payment-system/payment-system-participant-list/

However, that doesn't mean that all of them will do instant payments, some will aim to do the transfer within 2 hours, some will send payments at certain times of day, and some (probably not too many full members) will simply adhere to the rule that payments have to arrive by the end of the next business day. How they do it is a commercial decision, if you don't like what a particular bank does then don't use them, if enough people follow you then they may change the way they work.

There's banks that send the payment immediately and the receiving bank shows it being there but it's recorded as being received  as much as 2 days later

Hoenir

Which banks are you referring too. Bank is a broad generalisation. They are far from being the same. 

steven141

35har1old said:

SiliconChip said:

The only banks that are able to make instant payments are those that are full participants in the Faster Payments System (see list here). https://www.wearepay.uk/what-we-do/payment-systems/faster-payment-system/payment-system-participant-list/

However, that doesn't mean that all of them will do instant payments, some will aim to do the transfer within 2 hours, some will send payments at certain times of day, and some (probably not too many full members) will simply adhere to the rule that payments have to arrive by the end of the next business day. How they do it is a commercial decision, if you don't like what a particular bank does then don't use them, if enough people follow you then they may change the way they work.

There's banks that send the payment immediately and the receiving bank shows it being there but it's recorded as being received  as much as 2 days later

Sounds like The co-operative bank although it usually arrives much quicker than 2 days for me but there is always a delay to receive money for some reason. 

xylophone

I have an account with Saffron BS - a withdrawal made yesterday morning was in my bank account within the hour.

On the other hand, a withdrawal from Yorkshire BS doesn't arrive until the following day.

Withdrawal from Ford to nominated account take place the same day.

Lloyds Bank to other Clearers virtually instant.

7sefton

xylophone said:

I have an account with Saffron BS - a withdrawal made yesterday morning was in my bank account within the hour.

On the other hand, a withdrawal from Yorkshire BS doesn't arrive until the following day.

Withdrawal from Ford to nominated account take place the same day.

Lloyds Bank to other Clearers virtually instant.

How do you find Saffron BS? I was thinking of opening a savings account with them, so it’s good to know their transfers are quite quick. Any other feedback would be appreciated. Thanks.

Barkin

7sefton said:

How do you find Saffron BS? 

Web portal & mobile app are basic but perfectly functional. 

I think I've only had cause to call them once (ages ago, to do with setting up online and/or app access IIRC) and they sorted me out very efficiently. 

I've never had any issues with deposits/withdrawals. 

Hoenir

xylophone said:

Withdrawal from Ford to nominated account take place the same day.

Ford uses Barclays Bank as it's clearing house. 

xylophone

I am happy with Saffron - very helpful if you need to call.

allegro120

7sefton said:

xylophone said:

I have an account with Saffron BS - a withdrawal made yesterday morning was in my bank account within the hour.

On the other hand, a withdrawal from Yorkshire BS doesn't arrive until the following day.

Withdrawal from Ford to nominated account take place the same day.

Lloyds Bank to other Clearers virtually instant.

How do you find Saffron BS? I was thinking of opening a savings account with them, so it’s good to know their transfers are quite quick. Any other feedback would be appreciated. Thanks.

I've had accounts with Saffron for many years and never had any issues.  As mentioned above, the transfers are quick, they process payments every two hours between 4am and 8pm. The only downside is that they don't process payments at weekends.