We have received a payment (transfer) from a customer via something my Wife informs me is called Faster payments! Does this or any other other transfer method allow the customer to recall the money for whatever reason?
Thanks in advance...............
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The transferred money generally cannot be recalled although there are some stories about money being taken back as part of car buying scams.
I've never got to the bottom of those, so I think you can rest easy, particularly after a few days.
Some more here: www.fasterpayments.org.uk/
Although bear in mind there are different types of electronic transfers.
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Quite a number of UK banks offer "faster payment" these days,
I have had funds credited within two hours of the request being made on-line.
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Except at weekends or bank holidays, when the money leaves your account but sits in limbo until the next working day. Suspect it's a useful dodge for the banks to make a bit of interest on all the queued payments.
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''but sits in limbo until the next working day.''
Not had that for years.
Seen faster payment it before but never used it, i transferred some funds from my current to another banks savings account under normal transfer only yesterday saturday evening, this morning sunday the savings account showed the funds.
Does this faster payment incur any charges for either party?
Last edited by: gordonbennet on Sun 15 Apr 12 at 13:24
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...Does this faster payment incur any charges for either party?...
Not when I've used it, which has been for relatively small amounts.
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Sometimes I move money between two accounts that use the service. Often it has arrived at the other end by the time I've logged out of one website and into the other. Even did that in anger once when paying a large bill over the phone and realised the money was in the wrong place. Took about ten seconds.
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I receive occasional payments via this method and have found it to be far more reliable than the standing order.
Last edited by: Clk Sec on Sun 15 Apr 12 at 15:30
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It's not a fixed payment method. It allows you to transfer a sum of money to an individual or other account as and when necessary within a period of up to two hours or so. A standing order is a regular payment, normally on a fixed day of the month.
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>>normally on a fixed day of the month.
The standing order can take forever and a day to arrive in the chosen account, especially when weekends and bank holidays are involved.
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I'm sure I used the Faster Payment Transfer method over Easter without any delay (it's normally within two hours).
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There is nothing sinister about this system, and despite Fursty Ferrets suspicions, I have found it works at weekends and Bank Holidays too.
I regularly use the service. Last week, on Easter Friday, I realised that I had to make a transfer to settle a credit card bill by Tuesday 10f April. I paid it on Friday 6 April at 10pm, only to get a message that the amount won't be credited until the next working day, i.e. 10 April due to the Easter bank holiday. In fact, 10 hours later, early the next morning, when I checked my CC account online, the credit had already been applied.
This is one of those rare initiatives by banks which truly serves the customer's interest and pocket.
This is how Nationwide explains the service:
www.nationwide.co.uk/search/DisplayArticle.aspx?article=1397
Nationwide now apply this rule "From the 1st January 2012, Nationwide cannot transfer money to a non Nationwide account that does not accept Faster Payments. To find out which sort codes accept Faster Payments, ... "
They have a limit of £10,000 per transfer, but "Higher amounts can be sent using multiple transfers".
That came in handy when I recently had to make a last minute transfer £48,000 on 5 April to avoid the transaction appearing in the next tax year. I made the transfer in six steps (I used six different amounts adding up to £48k so that each was identifiable by the amount - to be able to trace them if any went astray.) It took me less than 5 minutes and the six transactions were received at the other Bank within a minute of being sent.
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>>That came in handy when I recently had to make a last minute transfer £48,000 on 5 April to avoid the transaction appearing in the next tax year.
Tax avoidance scheme to a charity, perhaps?
;>)
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I thought we were using this a year or so back with Santander, but it turns out they forgot to tell us that the amount we were moving was above their (ridiculously low compared to other banks) faster payment limit. Did it in person at our local branch and was told that it would be under 2 hours, took a couple of days as it actually was done by BACS IIRC.
Nothing wrong with faster payment, just Santander being incompetent.
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FWIW the Santander Faster Payments limit is now £100k. tinyurl.com/bl5v5op
I think all banks had to offer Faster Payments from January this year, but many launched in advance of this with varying limits. Not all types of account can accept Faster Payments, so worth checking that too tinyurl.com/cbz5rzv
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However do not rely on the timescale. I recently did a transfer (that I had committed to go on the same day),for a few thousand from a Barclays to a NWB account. Up pops a window, (AFTER I HAVE PUT IN ALL THE DETAILS!), warning that the payment will be delayed for 24 hours because of 'security concerns'. Apparently not then able to then cancel, and use an alternative transfer mechanism. I received no phone call from BB to validate my intentions and the transfer went through the next working day.
BB refuse to discuss the workings of their security measures. Could have been VERY embarassing. Maybe in my interest long term, but why not warn you before hand?
Last edited by: pmh on Mon 16 Apr 12 at 08:15
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New Credit Card - set-up payment on my current acct and sent £10 as a test.
Arrived 2 hours later on online Credit Card. Worked a treat.
Pay CC regularly via faster payments - previously I paid via the Credit Card website with my Bank Card - took 3/4 days to show up on the CC website.
I have, as a safety measure, a DD to take the full amount automatically
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A bit more investigation reveals that Faster Payments do indeed work at weekends and bank holidays, but the receiving bank doesn't have to process them until the next working day as I discovered with my credit card. Paid on Easter Friday, was the following Wednesday before they received the payment (that's from a debit card payment, Faster Payment, and a branch payment on the Tuesday - all were credited simultaneously on the Wednesday).
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When I transfer money from my HSBC account it appears in the payee account within minutes. I know because I have transfered to my Santander savings account and checked.
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>> FWIW the Santander Faster Payments limit is now £100k. tinyurl.com/bl5v5op
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Thanks that could come in handy. At the time the limit was £200 or £300 IIRC, not worth the effort for a city dweller, might as well get the cash and walk to the other bank to pay it in.
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Faster payments was just the banks being forced to take a reality check on an entirely electronic transaction taking 5 days - whilst they raked in the interest.
The scam with the car buying was using stolen / forged bankers drafts - when initially presented, the draft was accepted and the account credited. Only later when it was presented to the originating bank was it revealed to be fake, and the presenter's bank took the money back (which could be several weeks later). Some people got caught with no car and less money than they had started with due to the buyer offering a draft they just happened to have for more then car's price....
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I paid a deposit for an item by cheque yesterday lunchtime (my second cheque this year) because that was the method of payment they asked for as they claimed they don't do credit cards. I see it as a debit on my account today.
Would they have to pay to clear it that fast?
Wouldn't that be more than the cost of accepting credit cards?
Should I be worried they're going to do a runner?
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You can pay for express clearance, but I doubt it's worth it to the company for a deposit.
Could they have paid in the cheque at the branch it was drawn on - yours?
It would clear that night at no extra cost.
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>> I paid a deposit for an item by cheque yesterday lunchtime (my second cheque this
>> year) because that was the method of payment they asked for as they claimed they
>> don't do credit cards. I see it as a debit on my account today.
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>> Would they have to pay to clear it that fast?
Do they use the same bank as you?
I bank with Santander and observe paying in that Santander cheques clear into my account same day. Also cheques to the Lad's driving instructor clear during the day rather than overnight - assume he also banks at Santander.
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Thanks for the replies, I'll wait and see if the new carpet turns up.
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Although the cheque may appear on your statement, that does not indicate that they have cleared.
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Faster payment method - Iffy
