4 working days for cash to clear into a current a/c?

Hootie19

I paid £300 cash into my Lloyds TSB current account at a cashpoint machine on Easter Monday afternoon. I have one account at the branch the money was paid into (not the account I paid the cash into) and one account at another branch.

I received a letter from them dated 26th March saying that they had bounced a direct debit as "the £300.00 you paid in the other day hasn't cleared yet. These payments take about four working days to clear into your account".

Why?? I don't understand why CASH takes four working days to clear into an account held at a branch of the bank that my accounts are held at.

Is this right or should I take this up with Lloyds TSB.

Scousebird_2

Thats a bit of a long time-should of been processed on the tues at the latest really! Def take it up with them!

KiKi

It might be because you paid it in via the cash machine. I don't know about Lloyds, but when I've deposited cash with the Abbey into their machines I've always had a message come up, telling me that it takes extra time to clear if I don't pay it over the counter. Maybe that's why?

KiKi

Meltdown_2

As is generally the case,
if it is IN the Account Terms & Conditions, or the more wide-ranging Bank T&C, then they CAN do these things (and terms like "working day" have to be specified more precisely nowadays, since someone at the bank is undoubtedly working EVERY day).
If something is NOT in the T&C, then they shouldn't be doing it.

Hootie19

I was just a bit gobsmacked, as when I pay cash into the account over the counter it is instant and doesn't take days and days to clear.

I will query it with them and see what they say. I do think four days is a bit excessive for cash though.

System

It sounds as if they paid the money in as a cheque on their systems.
Cash doesn't "clear", there may be a delay in it getting paid in, but then it should clear straight away once it does.

Hootie19 wrote: »

I paid £300 cash into my Lloyds TSB current account at a cashpoint machine on Easter Monday afternoon. I have one account at the branch the money was paid into (not the account I paid the cash into) and one account at another branch.

I received a letter from them dated 26th March saying that they had bounced a direct debit as "the £300.00 you paid in the other day hasn't cleared yet. These payments take about four working days to clear into your account".

Why?? I don't understand why CASH takes four working days to clear into an account held at a branch of the bank that my accounts are held at.

Is this right or should I take this up with Lloyds TSB.

Iamthesmartestmanalive

Most likely because the ATM has to be emptied by the provider, ledgers supplied, checks under taken, data supplied to banks of pay ins etc, then accounts updated

Wereas all this can be done instantly over the counter, if it was the same at ATMS it would be far more open to fraud etc

[Deleted User]

Iamthesmartestmanalive wrote: »

Most likely because the ATM has to be emptied by the provider, ledgers supplied, checks under taken, data supplied to banks of pay ins etc, then accounts updated

Wereas all this can be done instantly over the counter, if it was the same at ATMS it would be far more open to fraud etc

Thats exactly it.

PROLIANT

All I can say is get rid of the legacy banking servers and software, the days of UNIX are over people, Microsoft, Real time online transaction processing software bring it on, the quicker banks move away from legacy proprietary systems the better.

[Deleted User]

PROLIANT wrote: »

All I can say is get rid of the legacy banking servers and software, the days of UNIX are over people, Microsoft, Real time online transaction processing software bring it on, the quicker banks move away from legacy proprietary systems the better.

Definitely agree.
Just to add if people need the money to hit an account quickly, dont use cashpoints to pay in.

Hootie19

Iamthesmartestmanalive wrote: »

Most likely because the ATM has to be emptied by the provider, ledgers supplied, checks under taken, data supplied to banks of pay ins etc, then accounts updated

Wereas all this can be done instantly over the counter, if it was the same at ATMS it would be far more open to fraud etc

Yes, I can understand all that - but four days?? It was paid into a Lloyds TSB account at a Lloyds TSB branch. I accept that it would probably take a day longer to process, but the more I think about it, the more cross I get that it took so long.

And if cash paid in over the counter is cleared instantly, then surely the same cash, taken out of an ATM envelope (and presumably security checked to make sure it's not forged notes) and credited to the account which is held by the same bank, would also clear instantly the day it was done? Which presumably would be the first banking day after the Easter holidays, i.e. the Tuesday?

On a brighter note, however, when I looked at my account online, there's no sign of the DD being bounced after all