CHAPS/BACS transfers/charges

tight_dundonian

Until reading this thread I was of a mind previously to have a RANT about the way BACS operates. However it does still seem appropriate to confirm that it is very apparent that we - as the little people - are very much in the dark as to the definitive way that the system operates and are unable therefore to utilise it to our benefit , or at the very least so it is not to our detriment when moving funds about.
The staff at the various financial institutions I contacted after having suffered a Late Payment Penalty and £80 in interest charges due to allegedly being outwith the dreaded "Timescale" with a credit card payment via Internet Home Banking all exhibited a lack of definitive knowledge as to how their organisations handled such payments/receipts and were unable to provide me with any info on cutoff times for paying/receiving funds. The two specifically involved were unable/unwilling to provide me with any actual times as to when my funds had been sent or received other than it was outwith "Four Working Days".
Halifax advised me that once I pressed my "SEND" button they no longer have the cash and therefore make no interest on it whilst it wearily makes its way to Virgin who told me basically the same except from the receipt point of view.
Which all begs the question - so who has the money during the four days it allegedly takes to transit the internet???
Two companies found simply by "Googling" BACS provide such a service and indicated a two day transit!
I can go to a Halifax cashpoint and use my Virgin card to withdraw cash immediately with a receipt in my hand to confirm the consequent reduction in the balance in the Virgin account.
I would be delighted to hear from someone within the banking industry who could explain EXACTLY how BACS operates.
I presume the whizzkids buying and selling Stock and Shares don't rely on it in order to earn a crust. Yes I know it turned into a Rant! Sorry!!!

dzug

gordonjazz wrote: »

Thanks for that. I was wondering also why there appears to be a large disparity between the clearing banks' charges (£20 ish) and the non-clearing banks charges of £30-35. Anyway hopefully all will be significantly improved in May.

Well maybe the clearing banks are 'inside' BACS and the non-clearing banks are 'outside' it

YorkshireBoy

tight_dundonian wrote: »

I would be delighted to hear from someone within the banking industry who could explain EXACTLY how BACS operates.

Everything you ever wanted to know about BACS...

www.bacs.co.uk

www.apacs.org.uk

...but by the time you've read it all, same day payments will be with us...

www.fastpayments.co.uk

Biggles

tight_dundonian wrote: »

I would be delighted to hear from someone within the banking industry who could explain EXACTLY how BACS operates.

If you did hear, it probably wouldn't help.

The reason is that, though the BACS system itself is, as YB's links demonstrate, perfectly straightforward and operates to a rigid timescale, the fact is very few people actually operate BACS directly.

We operate our online banking, which operates BACS to get the money to the recipient, who then transfers the money to your credit card account (or whatever).

The BACS part is not the problem. The problem is knowing exactly how your bank uses BACS, and exactly how the recipient deals with your money when he gets it. And, guess what, every bank does it differently!

Roll on Fast Payments. Though I bet each bank handles those slightly differently too!

honestDave_2

dunstonh wrote: »

...It takes a mangagement level clerk to input the data and another management level clerk to verify the data...

hahahaha I spat out my coffee reading this.

I'm going to print it out and pin it up in the operations center next time I'm there. This is where the bank employs 16 year old school leavers and other people who can't get better jobs to do monkey work.

management level!!! so funny.