Bank Transfer Times

reptar

Hi all,

New member here, I've been punted over to MSE by google a few times, now I've got a question I can't find the answer to.

Firstly it's a business related question, and secondly it might not be "money saving" as such more, "money savvy" Anyway...

Here in our small company we have money going in and out, as is only right and proper. Lately we've been having difficulties with suppliers saying they haven't been paid, and yet the transfer came out of our account.

The secretary called the bank and they told her that the transfer could take up to 6 weeks to appear in the sellers account! Whhhhaaaa?! Surely this isn't right?

I tried to track down what the law was on this issue, but can't find anything. APACS site didn't throw anything up.

So what is the maximum time, in law, a bank can take to complete a transfer, with the money having not just coming out of the buyers account, but also appearing in the sellers?

I'm not a director or anything, just an onlooker!.

jonesMUFCforever

A transfer (electronic or BACS) will leave your account on day 1 - if the receiver banks at same bank the money should show up next day, or if it is another bank 3 - 4 working days after.

If you are paying payers abroad then it will take a long time to reach the receiver's account.

From what you have written here it seems more of a reconciliation problem with the receivers account than a bank error.

reptar

Hi thanks for the info there! You're right many of our suppliers are overseas, so transfers could take longer, (but 6 weeks?!) Also, I don't quite understand, what do you mean "reconciliation"?

jonesMUFCforever

6 weeks is not unheard of for countries like India for receipt of foreign payments.

By reconciliation I mean you send a payment to somebody - somebody at the other side has to see it on their bank statement and 'allocate' that payment to your account with them.

I have a fairly common surname of Jones - just imagine if I sent you a payment with just my surname on it - without any kind of reference- how long would it take you to find out who it belonged to before say dispatching my order?