Cheque Clearing Time

money-4-nothing

Went into the post office to pay my council tax on 2nd April and I paid via cheque. Today, 4th April the cheque had cleared and money took out of my account.

All I can think of is that the post office uses the same bank as I do Natwest or cheque clearing times have been reduced.

When you think that the cheques have also got to be posted off, it looks like a 24 hour clearing time. Don't use cheques very often, but i'm sure it used to be 5 days.

Any ideas.

soolin

The money leaves your bank before it clears at the receiving end so just because you haven't got the money anymore you must not assume the recipient has cleared payment.

At the moment the clearing time for the person receiving the payment has changed to a maximimum of 6 working days, although some places are quicker. However when paying bills or making transfers it is always best to assume the full 6 working days to ensure that there are no late payment charges or other problems. If it then arrives a little quicker all is well.

YorkshireBoy

money-4-nothing wrote: »

or cheque clearing times have been reduced.

Changes were made towards the end of last year...

http://www.apacs.org.uk/payment_options/2-4-6.html

natweststaffmember

you have inward clearing and outward clearing. Inward is if you pay a cheque into the account but outward clearing has not changed. If someone banks a cheque given by you to them, it is the third working day after they have banked it that it debits your account. Nothing to do with the changes in the clearing cycle on this one.

PBA

natweststaffmember wrote: »

you have inward clearing and outward clearing. Inward is if you pay a cheque into the account but outward clearing has not changed. If someone banks a cheque given by you to them, it is the third working day after they have banked it that it debits your account. Nothing to do with the changes in the clearing cycle on this one.

No, it's the second working day after. If a cheque is banked on Monday, it reaches the clearing house on Tuesday and the paying bank on Wednesday.

Mikeyorks

money-4-nothing wrote: »

All I can think of is that the post office uses the same bank as I do Natwest or cheque clearing times have been reduced.

Neither.

It left the Post Office you paid it into, via courier that night (2nd). And was delivered into their Processing Centre in the early hours of the following morning. They processed it through the night ... and sent it to central Clearing at Milton Keynes (courier) by 1100hrs on the 3rd. They, in turn, re-processed it and sent a file of electronic data (IBDE) onto your Bank later in the afternoon. The physical cheque was also sent on by a further courier service.

Your Bank then processed the IBDE file in the early hours of the 4th ..... and deducted your cheque data from your account.

Meanwhile back at the Post Office. During the day of the 3rd - they will have processed the payslip you provided with the cheque. They then reconcile the totals of payslip batches back to the cheque batches processed the night before. Before then sending out the captured data, as electronic files, to whoever they've processed the money for (DVLA / Gas / Elec / Councils etc).

Amazing what goes on whilst you sleep!

YorkshireBoy

Mikeyorks wrote: »

Amazing what goes on whilst you sleep!

You stayed up for 96 hours to find out what happens? I'm impressed Mike!

natweststaffmember

PBA, we both agree. My post is not clear enough so I will take a mental note of that for future reference. Day 1 for me is cheque paid in for example Monday and therefore day 3 is Wednesday. Thanks for picking me up on that because it could be suggested from my post that I was saying Thursday in the example given.

PBA

natweststaffmember wrote: »

PBA, we both agree. My post is not clear enough so I will take a mental note of that for future reference. Day 1 for me is cheque paid in for example Monday and therefore day 3 is Wednesday. Thanks for picking me up on that because it could be suggested from my post that I was saying Thursday in the example given.

Ah, ok, only picked you up cos you used the word after. I always try and use days of the week when explaining to customers (as in my post) to avoid confusion.

Scousebird_2

:rotfl: Battle of the banks here guys-lol...I reckon we have Natwest and Barclays in on this one....can I join in from HSBC-lol!!!

Day 0 has thrown me all out of sync now-I find it easier to explain in days, if a chq goes in monday, it will debit the drawers account on wednesday (interest on credit balances due)-and credit the clearing account on thurs or fri.

The animated 2-4-6 video from APACS is fab!! I wanna take this into work and show everyone...bloody genius!!

It makes things so simple!!

I think we should just scrap cheques!! Lol!!

And I watched the video and I was right...praise the lord for good quality training...I even know the cleared for fate rule of which in my last bank I mentioned this to a manager and she just stared at me blankly-lol.

But I love my new job and couldn't be happier!!! At last!!

YorkshireBoy

Scousebird wrote: »

...praise the lord for good quality training...I even know the cleared for fate rule...

I had to explain it, along with the whole 2-4-6 system, to a young lady from the Yorkshire Bank call centre last week (and I work in engineering!). What are they employing...1,000 receptionists? Unbelievable! :rolleyes: