MSE News: Customers being 'ripped off' by banks on Faster Payments limits

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  • No_6
    No_6 Posts: 835 Forumite
    First Anniversary Combo Breaker
    so my key board may be hacked....
    just thinking about all my online bank accounts.

    22 or MORE accounts to change passwords etc




    going to be busy !!! :)
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    No_6 wrote: »
    so my key board may be hacked....
    just thinking about all my online bank accounts.

    22 or MORE accounts to change passwords etc




    going to be busy !!! :)

    I'd say it's about a thousand times more likely that somebody has broken your MSE password than that your keyboard has been hacked, and a million times more likely that you posted when under the influence and don't remember what you did :D
  • robmar0se
    robmar0se Posts: 1,328 Forumite
    First Anniversary Combo Breaker First Post
    Can anyone answer this, the Natwest limit for Faster payments is £20k per day. Is this oer account or per individual?

    As an aside the Faster payments limit should always be set at or higher than the ISA annual limit, currently £20k Yes?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    robmar0se wrote: »
    Can anyone answer this, the Natwest limit for Faster payments is £20k per day. Is this oer account or per individual?
    Answered on their website isn't it?...

    https://supportcentre.natwest.com/Searchable/913208362/What-are-the-payment-limits.htm
    As an aside the Faster payments limit should always be set at or higher than the ISA annual limit, currently £20k Yes?
    No. Why do you think it should?
  • Ballard
    Ballard Posts: 2,849 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    WestonDave wrote: »
    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.

    Special clearance was a bit more than that. Your bank would contact the drawers bank and ask whether the drawer had sufficient funds in their account and whether the cheque was valid. They would give an answer whether or not it would clear. It’s obviously been ages since I’ve handled one but if memory serves me right once they said that it would clear then it would definitely clear. It didn’t clear faster but there was a higher level of certainty.
    I hate verisimilitude.
  • GOOGLE1901
    GOOGLE1901 Posts: 1 Newbie
    First Anniversary
    I cannot believe anyone would use Faster Payments for large amounts (greater than £20,000). It's equivalent to handing over cash with little/no comeback? If you make a mistake (or hoodwinked!) then say goodbye to ....upto £100,000? I suggest we be thankful banks apply a limit ....it might help limit our loss?

    With a CHAPS payment the transaction is based on customer instruction so should provide a further level of security. And if any issue liability could be with the Bank?
  • nev.obrady
    nev.obrady Posts: 8 Forumite
    First Anniversary First Post Combo Breaker
    MSE has its fact completely correct. My mother-in-law has just been told, in her TSB branch, that to transfer £90k to my TSB current account, she would have to pay £30.

    I have advised her to insist on faster payments (several if necessary as I cannot find the TSB limits anywhere).

    The banks should be advising their customers on the best and cheapest way to manage their accounts. They should not be taking advantage of elderly customers who are not familiar with all of the services available to them.
  • Zanderman
    Zanderman Posts: 4,682 Forumite
    First Anniversary Name Dropper Photogenic First Post
    For anyone looking at this thread because of today's post, bear in mind it is 4 years old!
  • Armorica
    Armorica Posts: 866 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    GOOGLE1901 wrote: »
    I cannot believe anyone would use Faster Payments for large amounts (greater than £20,000). It's equivalent to handing over cash with little/no comeback? If you make a mistake (or hoodwinked!) then say goodbye to ....upto £100,000? I suggest we be thankful banks apply a limit ....it might help limit our loss?

    With a CHAPS payment the transaction is based on customer instruction so should provide a further level of security. And if any issue liability could be with the Bank?

    No - it's exactly the same. You - the customer - submit the instruction. If you get the details wrong, or if you've been scammed - it's the same issue.

    What do you think Faster Payments is based on if it's not customer instruction?

    and for Nev - TSB isn't a member of Faster Payments, so their bank may impose limits. The TSB limit is hard to find - one old article suggested 75k. You'd need to do the transactions on different days.
  • SilverE
    SilverE Posts: 7 Forumite
    I'm going to jump on this old thread as it's still relevant and folk might be interested.


    This (old) list of banks doesn't include Virgin Money - not a real bank of course. They will do an online transfer of up to £100,000 a day to the "nominated account" of an online savings account. But they will probably validate this by phoning you to make sure you're not being scammed, and in any case their idea of "Faster" is "same day with a following wind", never instant. It does work but you need a bit of patience. They will also do a CHAPS payment for a fee if you have to send more/need to guarantee same-day.


    NatWest has a daily maximum of £20k online. For more than that you need to be in-branch with ID to instruct a CHAPS transfer, for a fee.


    First Direct has a limit of £10k per transaction and £100k total for the day. Obviously they will do a CHAPS payment over the phone, again with a fee.


    Both FD's and NatWest's payments go instantly, and they process receipts instantly (at least between my accounts). People with Lloyds and Barclays accounts don't seem to get them instantly, it can take an hour to appear.


    So, needing to make some separate large transfers for a slightly complex property purchase, it was best to set them up in Virgin and send them on consecutive days with a bit of time to spare, necessary as one of the payments didn't clear until after business hours. Calling them to check that their validation was OK did no harm. If I'd had to guarantee same-day it would have needed a CHAPS payment, or getting the money ready in First Direct and sitting down to make a long series of payments.


    So the general point from the original post, that many banks make it unnecessarily difficult to avoid CHAPS fees, is still absolutely right.
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