Banks electronic transfers rip off

[Bodgeitandleggit]

Why in this modern digital age do bank/building society electronic transfers take days to go through?... I could understand in the olden days when cheques had to be verified and cleared before funds are released but I paid my credit card last week as I always do early to avoid late payment fees...but due to the bank holidays I have left it too late and got a £25 fee, I paid it on wed afternoon but it states it may take up to 5 working days . The transaction is now done within seconds but these banks seem to delay it so late payments incur a fee...it does not need any manual intervention so what is the hold up?

RIPPED OFF AGAIN

 

[pred]

Spare a thought for the poor bankers they've had a bad time these last few years, they got to be able to rip us off somehow or other.

 

[JohnD]

I use direct debit to automatically pay the minimum amount and avoid any fees. When I am paying extra I usually set up the Fastpay to leave my bank at least the day before due date, this gives time for them to process it before they run statements. You haven't got to key in the transaction the same day you want it to happen.

OOI, who was the card company, and what date was your payment (1) due (2) sent?

 

[Diyisfun]

If you always pay early to avoid fees, then set up a dd.
I have had cc it seems like since they came out, never had fees (tell a lie once I did, late post, phoned them fees reimbursed).
Two cc both on dd, never any problems. I have two because one I get cash back, the other no charges for use overseas.
Make your money work.

 

[masona]

I paid my credit card last week as I always do early to avoid late payment fees.

ahh, there was plenty of time to pay it earlier

but due to the bank holidays I have left it too late and got a £25 fee, I paid it on wed afternoon but it states it may take up to 5 working days . The transaction is now done within seconds but these banks seem to delay it so late payments incur a fee...it does not need any manual intervention so what is the hold up?

RIPPED OFF AGAIN

Sadly they can do what they like, rightly or wrongly. I now pay asap to beat them at their game. You can altered your credit card paying date nearer to your payslip date to make it easier, this is what I've done.

 

[joinerjohn]

Historically, cheques took at least 3 days to clear, because the cheque was sent to originating bank/branch to be verified and the funds cleared.
Nowadays with electronic banking systems there's no reason whatsoever why cheques can't be cleared almost instantly. So,,, What happens?
You pay a cheque into your bank account. The transaction shows on your bank account, but,,, the cheque is actually paid into a holding account for 3 or 4 days before clearing (remember the historical fact). This holding account accrues interest on every single payment made into it. Not a lot of interest you'd think on a cheque for say £50, you think, But,,, How many cheques and transactions are paid into this holding account every single working day? Probably millions of pounds worth. Now the interest does mount up when your talking of millions. Who gets this interest? Not me or you, but the banks themselves.
A nice earner ,for them , with yours and my money.

 

[longdogs]

Why in this modern digital age do bank/building society electronic transfers take days to go through?... I could understand in the olden days when cheques had to be verified and cleared before funds are released but I paid my credit card last week as I always do early to avoid late payment fees...but due to the bank holidays I have left it too late and got a £25 fee, I paid it on wed afternoon but it states it may take up to 5 working days . The transaction is now done within seconds but these banks seem to delay it so late payments incur a fee...it does not need any manual intervention so what is the hold up?


RIPPED OFF AGAIN

Do you bank with Nationwide by any chance?

 

[masona]

. Who gets this interest? Not me or you, but the banks themselves.

In theory but they pay interest in your account for having your money

 

[Workers]

My bank took 3 direct debits before the bank holidays from my accounts when they were not supposed to be taken until the 10th. As you can see it is the 7th today, I went to the local branch and complained and they said they could do nothing. I then called the Police and reported a theft, then all of a sudden the monies were refunded and agreed to be taken out on the 10th.
They will be losing my custom soon over this as soon as I set up accounts with another bank next week.
You would think with 4 accounts they would treat you with some respect.

 

[joinerjohn]

Workers, I had this problem with my bank, but only the once. I had a DD due on the 18th of every month and the money tried to go out of my account on the 14th. I received a letter (on the 16th) from them telling me I had been charged £25 for a DD returned because I didn't have enough money in my account to cover the DD. I went into the bank on the 18th, knowing my pay had gone in the day before and asked who gave permission for a DD payment date to be altered by 4 days. I also told them I would report the matter to the Banking Ombudsman. They couldn't explain why this had happened and waived the £25 fee and promised it would never happen again (and it never has).
I do think lots of banks try this on a bit and claim exorbitant fees for no reason whatsoever.
A friend of mine once got charged almost £30 for being 4p overdrawn (an overnight period from close of day, until about 12:30am the following day)

 

[D_Hailsham]

Don't forget that a DD payment originates at the person/firm being paid, not at the bank. Provided the DD is registered at your bank, they will pay it when the request is received from the payee, usually on a computer tape with millions of other DDs etc

If a DD payment is taken earlier than agreed you should get in touch with the firm you are paying by DD as they are the ones in breach of the DD agreement.

Standing Orders are completely different: you give your bank instructions to pay a fixed amount to X at certain times.

 

[Workers]

The DD is from the bank to itself. Just another branch of it.

 

[handyman77]

We pay our credit card bills by internet banking the day before the due date. They recieve that day and job done. Thats with Lloyds TSB.

 

[D_Hailsham]

The DD is from the bank to itself. Just another branch of it.

Not if two banks are involved.

In any case, a DD is not always for a fixed amount, unlike a Standing Order, so the Payee has to inform his bank every time a payment is requested how much to withdraw from the Payer's bank account.

 

[big-all]

halifax to lloyds tsb or tsb to halifax takes at least 20seconds all the same banking group though