Online Payments over a weekend
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MartynThompson
Posts: 5 Forumite
Something that occured to me today (Saturday). I went onto the Barclays website to pay off a credit card, with the intention of the payment going out on Monday, thus retaining two days interest.
When continuing through, the software would not allow me to place the payment for Monday 12th, as this was considered the 'current banking day'. My only options were to wait until Monday and pay immediately, or continue the transaction today. So this I did, and Barclays, as requested, removed the money from my account (immediately).
Critically, the BACS payment system does not run over the weekend, so Barclays are sat with my payment in a 'holding account' earning them my interest.
I appreciate two days interest on my paltry sums of money are negligible, but I would expect a lot of people organise their online finances on a weekend, intending payments to go on the following Monday. Barclays will be making a lot of money from this.
To be fair, I don't know if other banks use these underhand tactics too. I have written to Barclays about this and will post their reply (or excuse) when I receive it.
When continuing through, the software would not allow me to place the payment for Monday 12th, as this was considered the 'current banking day'. My only options were to wait until Monday and pay immediately, or continue the transaction today. So this I did, and Barclays, as requested, removed the money from my account (immediately).
Critically, the BACS payment system does not run over the weekend, so Barclays are sat with my payment in a 'holding account' earning them my interest.
I appreciate two days interest on my paltry sums of money are negligible, but I would expect a lot of people organise their online finances on a weekend, intending payments to go on the following Monday. Barclays will be making a lot of money from this.
To be fair, I don't know if other banks use these underhand tactics too. I have written to Barclays about this and will post their reply (or excuse) when I receive it.
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Comments
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When making an on-line payment over the weekend, the bank should not take the money out of a bank account, other than reducing the amount available for withdrawal. You were right to say that the amount would not go out until Monday though it was simply scheduled to go out and it was wrong for the bank to take it out from your bank account immediately.
I'm surprised to find that an internet banking website would not let you to schedule payments in advance, as both First Direct and Cahoot have facilities for you to do so.
I think the quickest way for a payment to reach your credit card account is to take your statement with you and pay cash over the counter. Then, there is every chance for the payment to be credited on the same day.0
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