BACS credits

peter365

Can anyone answer my question?I have a cash card account with a building society, BACS credits are credited immediately after midnight on the due date.My main bank does not credit the BACS credits until about 3am, AFTER they have paid out any debit payments, eg cheques or direct debits. Surely this is theft.VMT

dunstonh

Surely this is theft.

Why? Is someone taking your money?

Processing of transactions takes place in batches and and it not one single process. In theory, a transaction could appear at midnight or at 5am and could be a debit or a credit.

The ordering of debits and credits is based on the accountancy system but is in reverse for a consumer because the bank looks at it from its own point of view as to what a debit and a credit is and not your point of view.

At this moment in time most banks do not operate real time banking but work on a business day basis so credits in and debits out will offset against each other. Banks that operate real time (and this will be all of them very soon) require credits to be in the day before to ensure you will get your debits paid. This is already in the t&C for most banks.