Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 10th Nov 14, 1:24 PM
    • 2,324Posts
    • 971Thanks
    Former MSE Helen
    MSE News: Customers being 'ripped off' by banks on Faster Payments limits
    • #1
    • 10th Nov 14, 1:24 PM
    MSE News: Customers being 'ripped off' by banks on Faster Payments limits 10th Nov 14 at 1:24 PM
    The limit for transferring money by Faster Payments with your bank is £100,000, yet many banks set the limit much lower...

    Read the full story:

    Customers being 'ripped off' by banks on Faster Payments limits




    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.

Page 1
    • cifpower
    • By cifpower 10th Nov 14, 1:31 PM
    • 6,448 Posts
    • 4,093 Thanks
    cifpower
    • #2
    • 10th Nov 14, 1:31 PM
    • #2
    • 10th Nov 14, 1:31 PM
    Or you could set up a one time standing order I suppose.


    • Archi Bald
    • By Archi Bald 10th Nov 14, 1:43 PM
    • 9,376 Posts
    • 7,432 Thanks
    Archi Bald
    • #3
    • 10th Nov 14, 1:43 PM
    • #3
    • 10th Nov 14, 1:43 PM
    "Someone buying a house could pay for as many as five or six different CHAPS transfers, whereas if the limit was raised to the £100,000 level, it's likely they'd only need to pay for one or two, which could up to £100."
    I think MSE misunderstand CHAPS payments. There has never been a limit to individual CHAPS payments. Thus there is no need to make five or six CHAPS transfers, one is enough.
    • Archi Bald
    • By Archi Bald 10th Nov 14, 1:45 PM
    • 9,376 Posts
    • 7,432 Thanks
    Archi Bald
    • #4
    • 10th Nov 14, 1:45 PM
    • #4
    • 10th Nov 14, 1:45 PM
    Or you could set up a one time standing order I suppose.
    Originally posted by cifpower
    Agree, this would be an option at most banks.

    Also many, if not all, banks actually allow you to make several faster payments on the same day. The limit is just per transaction.
    • Pincher
    • By Pincher 10th Nov 14, 2:46 PM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    • #5
    • 10th Nov 14, 2:46 PM
    • #5
    • 10th Nov 14, 2:46 PM
    What have they done with BACS?


    CHAPS is really more for international telegraphic transfer any way.


    The only time I need Faster Payment is 31st January, when I file my taxes at the last minute, and have to pay some tax last minute. The rest of the time, the payment can take a week for all I care.


    So what is going to happen if I want to buy a house, and I need to transfer say £200k to my solicitor? I don't mind waiting a few days. Somebody is going to make me pay, one way or another, I bet.
    • BMN
    • By BMN 10th Nov 14, 3:02 PM
    • 317 Posts
    • 159 Thanks
    BMN
    • #6
    • 10th Nov 14, 3:02 PM
    • #6
    • 10th Nov 14, 3:02 PM
    What an incredibly mis-informed article.

    Once you hit your bank's Faster Payments limit, your transfer will tip over into what is known as a CHAPS (Clearing House Automated Payment System) payment.
    by MSE
    If you want to make a payment the method doesn't just switch from Faster Payments to CHAPS if it's above a certain limit.

    CHAPS is for the guaranteed same-working-day transfer of funds between UK banks.

    Helen Saxon, senior money analyst at MoneySavingExpert.com, says: "It's outrageous that people have to pay – sometimes up to £30 a time – for a service that the bank could offer for free, as it does for smaller payments.
    by MSE
    CHAPS payments require manual work 'behind the scenes'. Banks could offer CHAPS payments for free but we'd have to subsidise the cost in other ways. I would rather pay a one-off charge on the few occasions that I will need to make a CHAPS transfer. Faster Payments is suitable for pretty much all my other payments.

    "Someone buying a house could pay for as many as five or six different CHAPS transfers, whereas if the limit was raised to the £100,000 level, it's likely they'd only need to pay for one or two, which could up to £100."
    by MSE
    Already addressed by Archi Bald.

    Banks often cite security as a reason for limiting Faster Payments amounts, but Boulger says this is not a viable explanation.

    "If the banks use security as an excuse for limiting their maximum that would of course be a very weak excuse because there is no reason why they couldn't impose whatever level of security checks they require for a CHAPS payment of the same amount," he says.
    by MSE
    Many banks require you to visit a branch with additional identification (aswell as verifying your PIN). That wouldn't be a feasible option for Faster Payments.
    • bouicca21
    • By bouicca21 10th Nov 14, 3:09 PM
    • 4,762 Posts
    • 7,668 Thanks
    bouicca21
    • #7
    • 10th Nov 14, 3:09 PM
    • #7
    • 10th Nov 14, 3:09 PM
    As I found out just in time when buying my flat, even the publicised limits are not adhered to. If you are not in the habit of transferring large wads of dosh, Santander will flag the transaction as unusual and block it. Yes you can save the CHAPS fee by using their faster payments system - but only after jumping through hoops that you have no reason to believe exist simply by reading their website (or even by talking to their staff in branch). The precautions are probably sensible - but they really should publicise them (they do for CHAPS).
    • Credit-Crunched
    • By Credit-Crunched 10th Nov 14, 3:42 PM
    • 2,115 Posts
    • 4,140 Thanks
    Credit-Crunched
    • #8
    • 10th Nov 14, 3:42 PM
    • #8
    • 10th Nov 14, 3:42 PM
    The bank bashing on this website is at times astonishing. Do they believe that every thing should be conducted on a free basis?

    As long as the customer is informed of the charges at the time of their decision making process, then it is just business, plain and simple. If they do not want to pay the fees, write a cheque, wait 5 days. Or have it done same day and pay a relatively small percentage for the convenience.

    MSE - your journalism is looking even more crass and amateurish, which is saying something, considering the low bar you have set yourself.

    When writing an article, I recommend you a) get the facts correct and b) write for both sides of the argument, then lean to one side, based on fact and a substantiated opinion. Basic journalism, that it appears most of the articles on this website seem to ignore.
    • colsten
    • By colsten 10th Nov 14, 4:47 PM
    • 11,293 Posts
    • 10,672 Thanks
    colsten
    • #9
    • 10th Nov 14, 4:47 PM
    • #9
    • 10th Nov 14, 4:47 PM
    What an incredibly mis-informed article.
    Originally posted by BMN
    It's a sad day when MSE get their facts so wrong.
    • Fruit and Nut Case
    • By Fruit and Nut Case 10th Nov 14, 5:06 PM
    • 3,982 Posts
    • 2,973 Thanks
    Fruit and Nut Case
    I saw ripped off in the title and thought it must be a newbie come to rant.
    Are you for real? - Glass Half Empty??
    • Archi Bald
    • By Archi Bald 10th Nov 14, 5:49 PM
    • 9,376 Posts
    • 7,432 Thanks
    Archi Bald

    Once you hit your bank's Faster Payments limit, your transfer will tip over into what is known as a CHAPS (Clearing House Automated Payment System) payment. You will be charged for this transfer, with the fee varying between banks, but typically being between £20 and £30.
    by MSE
    If you want to make a payment the method doesn't just switch from Faster Payments to CHAPS if it's above a certain limit.
    Originally posted by BMN
    Crikey, I had missed that MSE implied that Faster Payments will 'morph' into CHAPS payments. Of course that is not the case.

    This article was not well researched, not one of MSE's prouder moments.
  • martyn2000
    I have just spoken to my bank Santander and they will not allow me to transfer 4 amounts of £95000 by Faster Payments on the same day to facilitate the purchase of a property. However they will allow the transfer for a CHAPS payment of £25. Are they correct?
    Last edited by martyn2000; 10-11-2014 at 6:11 PM. Reason: forgot
    • Archi Bald
    • By Archi Bald 10th Nov 14, 6:26 PM
    • 9,376 Posts
    • 7,432 Thanks
    Archi Bald
    I have just spoken to my bank Santander and they will not allow me to transfer 4 amounts of £95000 by Faster Payments on the same day to facilitate the purchase of a property. However they will allow the transfer for a CHAPS payment of £25. Are they correct?
    Originally posted by martyn2000
    Sounds about right. Though you could "faster payment" 4 x £95K (or 3 x £100K, followed by 1 x £80K) on 4 consecutive days to save £25.

    If you opt for the faster payment option, expect that the Santander AML procedures will kick in and all of the payments will be delayed to probably the next working day. Talking to them beforehand might eliminate the delays on the individual payments but won't raise the daily max on Faster Payments.

    The question is whether doing away with a 4-8 day wait and other inconvenience is worth £25 to you, when you want to secure a property of over fifteen thousand times the value of the cost of a single, painless, same-day CHAPS transfer.
    • Pincher
    • By Pincher 10th Nov 14, 6:34 PM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    I seem to remember you can clear a cheque on the same day for a fee. Personally, I would just write a cheque, hand it over to the solicitor's secretary, and let her get on with it.
    • Archi Bald
    • By Archi Bald 10th Nov 14, 6:45 PM
    • 9,376 Posts
    • 7,432 Thanks
    Archi Bald
    I seem to remember you can clear a cheque on the same day for a fee.
    Originally posted by Pincher
    Doesn't make sense. No bank would clear a cheque until they have actually confirmed with the issuing bank that the funds are actually available. That's done using the 2-4-6 clearing cycle.

    Personally, I would just write a cheque, hand it over to the solicitor's secretary, and let her get on with it.
    Originally posted by Pincher
    that's another option to save the £25 or so for a CHAPS payment. But don't expect same day completion - a cheque remains subject to the 2-4-6 clearing cycle.
    • WestonDave
    • By WestonDave 10th Nov 14, 6:56 PM
    • 5,038 Posts
    • 8,521 Thanks
    WestonDave
    To be fair to "Pincher" there used to be something called "special clearance" and solicitors would take cheques on that basis with faster clearance. However when it became known that all you were getting for your fee was them posting it first class back to the issuing bank rather than it going second class, and that it was still subject to the then random vagaries of the clearance system (pre 2-4-6) most firms stopped accepting cheques on that basis. Once 2-4-6 came in it became irrelevant. Prior to that it was a nightmare - you could wait a week, assume it was cleared and then get it bounced because there was no defined point at which it was "safe". Now at least the rules mean that by day 6 if it hasn't bounced it can't be.
    Adventure before Dementia!
    • Heng Leng
    • By Heng Leng 10th Nov 14, 7:01 PM
    • 4,943 Posts
    • 1,637 Thanks
    Heng Leng
    My Solicitors were happy to receive funds by FP, BACS, CHAPS and only very reluctantly by cheque.

    But would only issue funds to me by cheque or CHAPS (for a fee).

    Doesn't make sense. No bank would clear a cheque until they have actually confirmed with the issuing bank that the funds are actually available. That's done using the 2-4-6 clearing cycle.

    that's another option to save the £25 or so for a CHAPS payment. But don't expect same day completion - a cheque remains subject to the 2-4-6 clearing cycle.
    Originally posted by Archi Bald
    • Pincher
    • By Pincher 10th Nov 14, 7:15 PM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    My Solicitors were happy to receive funds by FP, BACS, CHAPS and only very reluctantly by cheque.
    Originally posted by Heng Leng

    They were reluctant the last time I did it as well.


    They expect me to jump when they call, have money sitting around earning no interest, just so they don't have to be responsible for the money for one minute.


    I don't mind my money sitting in the solicitor's account for a few days, paying no interest, so using BACS or wait a few days to clear a cheque is no problem to me. It's a problem with the solicitor.


    Fortunately I was never in a chain, but if anything should go wrong, like the bank's computer going down, it's all MY fault for the chain collapsing, I'll bet.
    Last edited by Pincher; 10-11-2014 at 7:17 PM.
    • Heng Leng
    • By Heng Leng 10th Nov 14, 7:21 PM
    • 4,943 Posts
    • 1,637 Thanks
    Heng Leng
    It never cleared the cheque faster, it was just that it made payee's bank aware that the cheque was coming (via the phone) and the cheque was sent individually.

    I usually had the effect of making it bounce quicker, if that was going to happen.

    To be fair to "Pincher" there used to be something called "special clearance" and solicitors would take cheques on that basis with faster clearance.
    Originally posted by WestonDave
  • archived user
    I'm slightly confused. This is off Yorkshire BS under faster payments: "The only difference you'll be aware of (other than the quicker arrival at the receiving bank) is what happens to payments above £100,000. There is an overall transaction limit of £100,000 under the Faster Payments scheme. So, if you request an electronic transfer above this amount, it will be sent as more than one payment."

    So if request 120k as faster payment, they will send 100k and 20k as 2 separate payments under FP. No mention of CHAPS. Unless YBS are the exception - they are of course a BS not a bank!
    Last edited by teepee83; 10-11-2014 at 7:37 PM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,625Posts Today

7,448Users online

Martin's Twitter