UK On-line Banking Procedures..

  spuds 13:20 23 Mar 2006
Locked

Over the past year,I have done quite a number of on-line buying/selling and banking procedures, and a problem occurred yesterday, and I was hoping someone may have a similar experience or correct explanation.

Yesterday I had need to query a payment that was completed on-line, and the bank as informed me that a payment shown on a certain day may not be correct, as the bank's procedures may not look at the payment instructions till the next day. A typical case example: Credit card statements request payment on certain days for payment over the counter,post or on-line. The on-line payment day, especially if it is a Sunday (if you pay it then), may show as a logged event, but in actual fact, the process of payment verification may not occure till the following day, according to the banks IT records.

I know that in some countries, payments can be conducted within a couple of hours (Sweden)and the UK industry are being pressured to improve on their services and procedures. Can someone explain this fact, and have they found similar activities with their on-line banking.

  ACOLYTE 13:28 23 Mar 2006

Different companies have different ways they do business,and sometimes the lack of communication between the bank and the company can slow things down,if everything checks out on your statement i wouldn't worry to much about it.You may get better help/results in the comsumerwatch forum with this kind of question though).

  Smiler 13:30 23 Mar 2006

Saturday and Sunday are not banking days so any transaction carried out after close of business on a Friday will not be actioned until the Monday. Usually transactions are carried out at the end of the business day. I have found with my bank(Barclays) that if I authorise a payment say today if it is to another Barclays account or branch or a Barclays visa etc it will be carried out at the end of business today but if it's to another bank or business it will take upto five working days.

  spuds 13:44 23 Mar 2006

ACOLYTE-- Thought about the other forum columns, and thought that the FE would move it if necessary.

Smiler-- I thought that banking and finance was a never go to sleep 24/7 industry, hence the pressure for banks to get their act together. Funny that you should mention Barclays, I have a friend who is conducting a business deal transaction using three Barclays finance service companies to finalise the same deal. Talk about utter confusion, duplications and rising administration costs for the same end product.

  961 14:11 23 Mar 2006

I'm not quite sure what the problem is here

As Smiler says, on line authorisations for payments made at the weekends or overnight (generally after about 6pm) are actioned the next business day. So whatever you authorise after about 6pm Friday will happen on Monday

However, if you authorise a payment during the working day it will generally happen without delay and will arrive at the destination as specified in the help files of the bank concerned

If it's Barclays, and another Barclays account, it's usually immediate. Another Bank, and it may well be the next day. A credit card company and it can be anything from one to four days depending on the credit card company system

I'm sure your Bank will tell you the exact times for your account

  spuds 09:44 24 Mar 2006

This is the point that I am trying to make. Barclaycard who are owned by Barclays Bank, do not seem to have a procedure for taking direct payments on the day of instruction.If what as been stated is correct, then (as an example) a Barclays Bank account customer, paying a Barclaycard statement payment, will be treated in the same way as a non Barclays account customer.

Again, if what is stated correct,any payment instruction given via electronically means after 'close of business' on a Friday evening, will not be dealt with till 'open of business' on a Monday morning (same as a walk-in bank), even if the statement payment date gives Saturday or Sunday as a final payment date. (Doe's that follow?).

The reason why I raised this query in the first place, was after a life time of banking with no problems, and what now appears to be a 'favourable' change to banking procedures, especially in respect to increased interest charges and penalty fees, some people may find themselves in a catch 22 situation.

As another example: Some bank and credit card companies are now making cost savings, by using procedures of dispatching statements via third party companies.In the case of Barclaycard, their statements are dispatched using TNT then Royal Mail, with the perhaps extra risk, that something may get lost in the post.

So in general thoughts, electronic banking is not a well believed public 24/7 business, as what many people would think or expect.

  Smiler 13:27 24 Mar 2006

You are wrong about Barclays not having a procedure for taking direct payments on the day of instruction.

From the Barclays site

"How long will my payments take?

Payments to Barclays accounts: These are made immediately unless it's a payment to a new account or the payee is in the list below. If they're not in the list below and it's a payment to a new account, payments made before 6.30pm will be made the next working day and payments made after 6.30pm will be made in two working days.

Payments to Barclaycard: Immediately but your payment will take a working day to show on your statement. Payments made after 6.30pm or on a non-working day are dated the next working day on your statement.

Payments to non-Barclays accounts: At least three working days."

from:-
click here

The above applies to payments made from Barclays current accounts.

I have made payments from my Barclays current account to Barclaycard before 6-30pm and they show on the Barclaycard account the next day but with the same date as the date it was actioned out of my current account on it.

Please note the remark above "payments made before 6.30pm will be made the NEXT WORKING DAY and payments made after 6.30pm will be made in two working days."

Saturday & Sunday are not working days as far as banks are concerned.

  Smiler 13:32 24 Mar 2006

Sorry the following

"Please note the remark above "payments made before 6.30pm will be made the NEXT WORKING DAY and payments made after 6.30pm will be made in two working days."

should have read

"Payments to Barclaycard: Immediately but your payment will take a working day to show on your statement. Payments made after 6.30pm or on a non-working day are dated the next working day on your statement."
:-)

  spuds 17:55 24 Mar 2006

You have it the nail on the head>> Saturday & Sundays are not working days as far as banks are concerned<<

State a lot for UK electronic 24/7 banking, doesn't it!.

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