Banks...
- 27 June 2008 13:203420I am not one to praise the banks. Their customer propositions are very poor and they do often push poor quality products on the public. One day perhaps they will wise up and get back to good old fashioned personal service. Even those who claim to offer a personal service and, suprise suprise, a phone number for your own bank!!!!! are not quite on the same wavelength as those businesses that truly do offfer a personal service.
This, however, is not intended as a knocking thread, on the contrary.
You may all know that there has always been a gap between someone paying in a cheque or making an on-line transaction, typically of 3 days before the money appears in the recipiants account. The money gets lost somehow in the ether and, while 3 days is not long, imagine how many transaction take place and the amount of money involved daily, it must total up to £million in lost interest payments. On top of which are the timing issues for cashflow and inconvenience of money you need now not being available for another day or two....
That has changed or is changing....
A month or so ago it was announced that a new banking system was to be introduced that would credit money within hours of an on-line or telephone transaction. They said it would be phased in over 6 months and would be fully operational by Christmas (oh yeah, I thought, which Christmas? - a somewhat understandable reaction).
Well, I run more than one business as some of you know and my business banking and personal banking is spread among 3 major banks.
Yesterday, planning ahead for the bills due on the 1st July, I made a number of transfers between these three banks. What do I find this morning - all the dosh has been credited to my account already!!!!
Amazing - they have delivered on their promise. This will make life easier for all of us, particularly those of us who run businesses.
No it doesn't mean you should pay your bills 3 days later!!!!!
- 27 June 2008 14:143427BarryW
Very interesting but does it mean that just because your bank has shown and credited the money into your account that is available to be withdrawn.I know I have paid in dishdosh, checked my hole in the wall account the following day and seen the money is already showing in my account but when I have attempted to make a withdrawal a different ''balance available'' amount was shown which did not include the previous amount paid in.Marek
I think therefore I am (not a Tory supporter) - 27 June 2008 14:223428My computer say....... 'available cash'...................................
My on-line system, Marek, shows the amount available to spend and as I need to track this fairly carefully I can confirm that this included two payments from other banks made the previous day. If the money was credited but 'not available' it would be apparent. The receiving bank being Lloyds, paying banks NatWest and HSBC. - 27 June 2008 14:313429Marek - that very thing happened to me today - money balance message was different to the balance available to withdraw...I was told that nothing had changed and it would take 5 working days for the recent deposit to be avialble - next Tuesday!
- 27 June 2008 14:453430As I said Bern the system is being rolled out and will be fully implemented by Christmas. I assume it depends on what the paying and receiving bank is and maybe whether business accounts are involved. It worked for me so it shows it is coming!!!!
- 27 June 2008 15:153431I shall wait and see what happens at my banks but thanks for the info chaps.
Marek
I think therefore I am (not a Tory supporter) - 27 June 2008 18:423435This is all to do with the "Faster Payments" system - now that the technology is there it is no longer a long winded task for the banks to first check the money is there before transferring it - at an instant it is available....
http://www.apacs.org.uk/payments_industry/faster_payments_service.html
Faster Payments Service
Faster Payments is the first new payments service to be introduced in the UK for more than 20 years. For the very first time phone, internet and standing order payments can move within a few hours - almost at the touch of a button.
The Faster Payments Service enables electronic payments, typically made via the internet or phone, to be processed in hours rather than days. To date 13 banks and building societies are committed to the new service. In the future, other financial institutions will be able to join, either as members, or to access the system through agency arrangements with a member - just as they do with other payment systems.
The new Faster Payments infrastructure was launched on 27th May 2008. From this date, the founding member banks will be gradually implementing their own plans to deliver the new service to their customers. A phased approach to rollout is being adopted to help ensure that the service is launched smoothly, securely and with total reliability for customers. The new service will run alongside existing payment schemes in the UK such as Bacs and CHAPS.
The development of this new service is a massive and complex project involving significant investment. It will revolutionise the UK's automated payments infrastructure and will be comparable to the best in the world.Been nice knowing you :) - 27 June 2008 20:273443i would be interested to see our HBOS respond.
they take anything between 6 and 8 days to clear a cheque.