New speedy system for bank transfers launched; account to account in under 2 hours

Innys

Having waited several years for this the banks have conned us again.

Last week I tried to transfer 1,000 from my Barclays to Halifax accounts. Both sort codes showed up as participating in the "Faster Payment" system, according to the APACS website. How long did it take? 3 days.

Went to Barclays and asked them why this was. Got some flannel about the sending and receiving banks needing to be part of the scheme (which they were) and that the process could be delayed for any minor reason.

I asked if it would ever be instant for all accounts. The Branch Manager didn't know. Hardly inspires confidence, does it?

Cloudane

Some of them don't send yet e.g. A&L can receive but not send. Others are limited on the amount they can send.

It's all temporary, I think - they'll get there. When it comes to the nation's money and thus its economy, I'm happier that they're being extra cautious and taking their time than if they went rushing in and risking disaster.

YorkshireBoy

I'm not sure if it's been mentioned earlier in the thread, but I wonder if things would have been different had there been some form of deterrent* involved?

For example, when they asked for an extra 6 months last year they should have been told...

"OK then, but if it's not 100% operational on the 27th May then you must do free CHAPS transfers for any customer wanting a same day transfer"


* Can't say 'penalty', because that would be unfair.

Nixxx

Has anyone transferred between Barlcays and natwest? I tried to this morning but still cant see the payment.

Kiwi_g

Just seen the following in a letter from NatWest Corporate Banking to their customers re Faster Payments :-

Faster Payment charges
The charge for an immediate payment will be £3. Other domestic payments made through the service including next day payments will be chargedd at the same rate as your Bacs payments. Your existing Bacs and CHAPS charges are unchanged.

This seems to be at variance to this :-

http://www.natwest.com/microsites/personal/faster_payments_service/faster_payments_faq.asp

Milarky

YorkshireBoy wrote: »

I'm not sure if it's been mentioned earlier in the thread, but I wonder if things would have been different had there been some form of deterrent* involved?

For example, when they asked for an extra 6 months last year they should have been told...

"OK then, but if it's not 100% operational on the 27th May then you must do free CHAPS transfers for any customer wanting a same day transfer"


* Can't say 'penalty', because that would be unfair.

I think your tongue is firmly planted in your cheek, YB!

How could there ever been any form of 'punishment for failure' when the whole process was clearly taken over and run by the banks under the fig leaf of OFT oversight?

I've just read from their own glowing 'final report' here which states that [as at February 2007]

The Task Force's BPSL Innovation Working Group report led to an agreement [May 2005] by the banking industry to introduce faster payments for internet and telephone banking, as well as an improved service for standing orders. The industry has agreed that this new service will be in place by the end of November 2007 and is on track to meet that target. 'Executive Summary 1.7 - Final Report Payments Systems Taskforce'

So, between February and July 2007 this somehow morphed from being 'on target' for November to 'needs at least another six months to get it right'. And somehow the 'industry' only seemed to refer to the infrastructure - not the users synonymously. In that time, of course, repsonsiblity/accountability moved from the OFT - that is, the last vestige of public interest oversite- to APACS - an industry body. What started out in December 2000 with Andrew Smith saying :

[FONT=Arial, Helvetica, sans-serif]There will be no hiding place for anyone seeking to take advantage of customers dependent on them to carry out essential daily banking transactions such as drawing cash, cashing cheque, transferring money or using standing orders and direct debits to pay bills.[/FONT]

didn't quite turn out as he had expected. (Of course he also admitted further down that)

[FONT=Arial, Helvetica, sans-serif]"After careful consideration of how best to deliver an effective regulatory regime for consumers, we believe that this can best be achieved by using the existing framework and competition focus provided by the OFT.[/FONT]
[FONT=Arial, Helvetica, sans-serif] "These proposals demonstrate our determination to tackle the competition concerns raised in the Cruickshank report effectively and in a way which will deliver wider benefits."[/FONT]

..so why is anyone surprised I wonder?

PJHilder

Just transfered £5000 from HSBC to Citibank but when using the sort code checker it says my Citibank sortcode can't accept faster payments. I thought they were part of the scheme?

redrabbit29

All this confusion... makes me wish that the banks had all delayed it by 6 months or so, and launched it fully as one.

I can't stand that some banks can receive, some banks can't, but same can send, and others can't. Also, some can do it, as long as it's not over £xxx, and some can do it from one bank to another, but not to a different bank.

It's completely pointless in my opinion.

angelfishmwah

I can't believe they haven't all signed up to it yet and offered it immediately - isn't this really setting a new, higher and fairer standard for banking - surely banks would want to be seen to be offering the best standard possible?

redrabbit29

angelfishmwah wrote: »

I can't believe they haven't all signed up to it yet and offered it immediately - isn't this really setting a new, higher and fairer standard for banking - surely banks would want to be seen to be offering the best standard possible?

I think someone on here was saying that many banks are dipping their toes in first, and testing the ground before launching it 100%.

Although as I said, I'd rather everyone delay it for 1 year after it's fully tested and then launch it all together, rather than all this confusion about which banks can send, which can receive, which are compatible, which can send over £20, etc....!