MSE News: Customers being 'ripped off' by banks on Faster Payments limits
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Yous sound so determined that it must be a rip-off that I won't try a third time to point out where you went wrong.0
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Nationwide allows one to make multiple faster payments of £10,000 per day ( presumably up to the £100,000 limit)
Perhaps other banks also do this..?0 -
Archi_Bald wrote: »Yous sound so determined that it must be a rip-off that I won't try a third time to point out where you went wrong.
No, please do tell me when I'm wrong because I hate being ignorant! I've taken your points and gone through them one by one and explained where I think you're mistaken and used my own personal experience to back that up. I've been through all the comments on this thread a second time and I still think this article is perfectly fine. Maybe it's because I'm looking at it from a different perspective?!
The quote "ripped off" came from a mortgage broker, it centres around buying and selling property where multiple £10k-£100k transactions happen with solicitors.
So please, one last time, how in this following common scenario is this fair?
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You need to pay your solicitor a deposit of £25k for a house. The deposit is needed today to secure the deal and they don't take debit card payments, so your options are CHAPS or FP.
HSBC do not allow multiple £10k FP in the same day, so your only option is CHAPS and a £30 fee.
Barclays allows you to make a £25k FP and there is no charge.
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No, please do tell me when I'm wrong because I hate being ignorant! I've taken your points and gone through them one by one and explained where I think you're mistaken and used my own personal experience to back that up. I've been through all the comments on this thread a second time and I still think this article is perfectly fine. Maybe it's because I'm looking at it from a different perspective?!
Initially disagreed with you but I think I do see what you're saying now.
From the quote by Helen Saxon (senior money analyst at MSE) within the article:
"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."
So Helen is saying that somebody buying a house could have to make 5 or 6 different transfers. So if the FPS limit was raised to £100,000 at all banks then the smaller transactions could be paid via Faster Payments and the 1 or 2 larger transfers could done as a CHAPS payment.The quote "ripped off" came from a mortgage broker, it centres around buying and selling property where multiple £10k-£100k transactions happen with solicitors.
So please, one last time, how in this following common scenario is this fair?
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You need to pay your solicitor a deposit of £25k for a house. The deposit is needed today to secure the deal and they don't take debit card payments, so your options are CHAPS or FP.
HSBC do not allow multiple £10k FP in the same day, so your only option is CHAPS and a £30 fee.
Barclays allows you to make a £25k FP and there is no charge.
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If you need a same-day transfer CHAPS is your only guaranteed option anyway.0 -
Thanks for your comments. We have tweaked the copy to make it clearer that faster payments don't automatically turn into CHAPS payments - this was never how we meant that sentence to be read.
We have also clarified in the quote that several CHAPS payments may need to be made as several large transactions may be made over a period of a few months to multiple parties.0 -
What is the point of this thread?
Am I the only one who if I transferring a large amount of money and needed it to get to it's destination securely, promptly and hassle free would not object in the slightest to paying an organisation a £25 fee to do that correctly? You're paying for a service here.
We have a free health service but you can pay to go private, are we being ripped off here?
It's like when you hear about moaners complaing about the cost to send a package via post. If it is that expensive then send it yourself, sure it would be cheaper?
If it went wrong who is to blame? Certainly isn't me, oh it would be if I had done it as a faster payment though.
It's articles like this that will cause a blanket response, in the end everyone will pay to have their everyday banking done, banks will just charge EVERYONE for day to day transactions and probably in return make more money than they do on a CHAPS transfer.
It is only ripping you off if you pay for something and you don't get the goods/service you expected.0 -
Do I think banks are ripping off customers over FPS limits? Absolutely I do. It’s not so bad if you’re with, say, Nationwide BS, where you’re allowed to make multiple payments on the same day, each for £10,000, but at Barclays you can only pay £10,000 per day online, which is ridiculous.
Suppose I have a maturing fixed deposit for £85,000. As is normal for such deposits, it is linked to a nominated current account (in my case, with Barclays), so if the maturing deposit is being reinvested with a different institution it cannot be transferred directly but has to be channelled via my Barclays current account. If I were to transfer funds to the new deposit-holding institution by FPS it would take nine working days (8 transfers of £10K and 1 of £5K). It could be transferred in one amount of £85,000 by CHAPS, but why should I have to pay £25 for a CHAPS payment when the FPS scheme limit is £100K? Personally I refuse to do so, so 1-2 days before the deposit is due to mature I issue a cheque to the institution that is taking over the deposit and ensure that it gets presented to my branch one business day after the original deposit maturity date. That way, I lose only one day’s interest on the money, unless I am unlucky enough to have a deposit mature on a Friday, when I lose three days’ interest.
Incidentally, I disagree with those who have suggested that a £25 charge is justified because you’re getting a superior service. In my experience you’re not. A CHAPS payment is only guaranteed to get to the beneficiary by close of business the same day, but to avoid my cheques being bounced by Barclays I have to ensure that cleared funds reach my current account by 2.00 p.m. Every time I have used the Faster Payments Service the payment has reached the destination account within 2 hours, so a covering payment made first thing in the morning via FPS would arrive in time to avoid my cheque being bounced, while a CHAPS payment might not. I’ll take some convincing that I should pay £25 for an end result that is worse than the alternative free service.0 -
blobthebuilder wrote: »Do I think banks are ripping off customers over FPS limits? Absolutely I do. It’s not so bad if you’re with, say, Nationwide BS, where you’re allowed to make multiple payments on the same day, each for £10,000, but at Barclays you can only pay £10,000 per day online, which is ridiculous.
Suppose I have a maturing fixed deposit for £85,000. As is normal for such deposits, it is linked to a nominated current account (in my case, with Barclays), so if the maturing deposit is being reinvested with a different institution it cannot be transferred directly but has to be channelled via my Barclays current account. If I were to transfer funds to the new deposit-holding institution by FPS it would take nine working days (8 transfers of £10K and 1 of £5K). It could be transferred in one amount of £85,000 by CHAPS, but why should I have to pay £25 for a CHAPS payment when the FPS scheme limit is £100K? Personally I refuse to do so, so 1-2 days before the deposit is due to mature I issue a cheque to the institution that is taking over the deposit and ensure that it gets presented to my branch one business day after the original deposit maturity date. That way, I lose only one day’s interest on the money, unless I am unlucky enough to have a deposit mature on a Friday, when I lose three days’ interest.
Incidentally, I disagree with those who have suggested that a £25 charge is justified because you’re getting a superior service. In my experience you’re not. A CHAPS payment is only guaranteed to get to the beneficiary by close of business the same day, but to avoid my cheques being bounced by Barclays I have to ensure that cleared funds reach my current account by 2.00 p.m. Every time I have used the Faster Payments Service the payment has reached the destination account within 2 hours, so a covering payment made first thing in the morning via FPS would arrive in time to avoid my cheque being bounced, while a CHAPS payment might not. I’ll take some convincing that I should pay £25 for an end result that is worse than the alternative free service.
Then don't bank with Barclays!
If Nationwide tick ur box, switch to them.
It's Barclays policy on their limits, charging structue, it's their business, if u dont like it move out.
I have no issues with Nat West/Halifax about moving funds to account same day if I blip on my budgeting.0 -
change the details of the nominated account before it matures?0
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I have to ask too how many of us on here need to transfer large £10k+ sums on a regular basis using any method let alone FP?
I can see the sense in having a lower limit - if your account was hacked and monies transferred out there would be plenty of posts on here about the bad old banks letting someone transfer funds out of their accounts fraudulently.0
This discussion has been closed.
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