When will internet transactions be instant?

Madwelsh · 25 Sep 2006 at 15:01

Well this is a real bugbear with me, I find it ridiculous that the bank still takes 5 working days to process an internet transaction (paying a bill etc) when it is two computers 'talking' to each other and payment is instant.

Why is it when I pay a bill in cash the payment is instant, yet transferring monies to pay a bill is not? It's not as if in this day and age there's a person doing these transfers is it? I'm thinking it's more to do with the 5 days of interest that is generated. PURE BANKER GREED!!!!

I just ask how many times all you folks have been charged with a 'late payment' because the money has failed to clear by one or two days? If you ask me, it's just another way that the banks have agreed to snatch yet more money, afterall, isn't the internet age supposed to be making life easier??

I think I heard that the government is make some legisilation that all transactions over the internet should be made instant.. Currently the banks are enjoying profiteering for doing absolutely squat.

Makes me sick

/end rant

Tomsk · 25 Sep 2006 at 15:09

/think like a banker mode on

If the banks did it instantly they would lose the interest earned. To balance this they would obviously start charging for each transaction and the minimum charge would probably be a lot more than a few days interest.

/mode off

Jambo · 25 Sep 2006 at 15:09

You can make instant transfers if you wish but there is a fee.

A bank is not a charity.

Visage · 25 Sep 2006 at 15:10

Madwelsh said:
Well this is a real bugbear with me, I find it ridiculous that the bank still takes 5 working days to process an internet transaction (paying a bill etc) when it is two computers 'talking' to each other and payment is instant.

Why is it when I pay a bill in cash the payment is instant, yet transferring monies to pay a bill is not? It's not as if in this day and age there's a person doing these transfers is it? I'm thinking it's more to do with the 5 days of interest that is generated. PURE BANKER GREED!!!!

I just ask how many times all you folks have been charged with a 'late payment' because the money has failed to clear by one or two days? If you ask me, it's just another way that the banks have agreed to snatch yet more money, afterall, isn't the internet age supposed to be making life easier??

I think I heard that the government is make some legisilation that all transactions over the internet should be made instant.. Currently the banks are enjoying profiteering for doing absolutely squat.

Makes me sick

/end rant

You can do instant transactions, its just that you have to pay for it.

Hades · 25 Sep 2006 at 15:10

Payment isn't instant though. All IB does is tell the bank to make the payment. It still has to be sent via BACS if the receiver is with another bank.

Jambo · 25 Sep 2006 at 15:12

Hades said:
Payment isn't instant though. All IB does is tell the bank to make the payment. It still has to be sent via BACS if the receiver is with another bank.

A same day transfer is sent via CHAPs.

grahamjenks · 25 Sep 2006 at 15:14

Madwelsh said:
Well this is a real bugbear with me, I find it ridiculous that the bank still takes 5 working days to process an internet transaction (paying a bill etc) when it is two computers 'talking' to each other and payment is instant.

Why is it when I pay a bill in cash the payment is instant, yet transferring monies to pay a bill is not? It's not as if in this day and age there's a person doing these transfers is it? I'm thinking it's more to do with the 5 days of interest that is generated. PURE BANKER GREED!!!!

I just ask how many times all you folks have been charged with a 'late payment' because the money has failed to clear by one or two days? If you ask me, it's just another way that the banks have agreed to snatch yet more money, afterall, isn't the internet age supposed to be making life easier??

I think I heard that the government is make some legisilation that all transactions over the internet should be made instant.. Currently the banks are enjoying profiteering for doing absolutely squat.

Makes me sick

/end rant

I remember seeing an item on BBC News a while back highlighting this and showing a European country (I think Sweden) where all banking transaction wereinstant (at least from the point were the funds were ascertained to exist).

However as already pointed out the banks have to make their income somewhere, if it wasn't here it'd be someone where else.

Also consider that someone has to develop and maintain not only the internet banking system but also all the back office systems that support the transaction you make and take for granted - so they're not exactly doing squat.

eXor · 25 Sep 2006 at 15:15

Is it not instant when both accounts are with the same bank? I wouldn't know because Murphy's Law dictates that each and every payment I make is to an altogether different bank. :mad:

Pete_m · 25 Sep 2006 at 15:17

I was hit with a fine for my cc being paid late because of the same thing. My statement said to pay by ''XXX'' date and I did, and can proove it, but the money took longer than expected for whatever reason and they raped me for £40....which is a lot when I was only paying £200 off the card

[DOD]Asprilla · 25 Sep 2006 at 15:19

Which transactions take 5 days anyway?

I know they tell you that they could take 5 days, but I've never had one take more than 3 working days. Even then it is really only 2 days because the money is in the account on day 3.

Part of the reason they take so long is also the volume of transactions that take place everyday.

Day 1: BAC transfer request placed.
Night 1:Banking system goes off line and all BACS transfers take place including the various checks that are required to ensure that there are no errors. Sum total received by the bank in all transactions is paid into a suspense account.
Day 2: Banking system back online so no transactions take place.
Night 2: Payment references are checked and sums are assigned to individual accounts.
Day 3: Cash in account.

When working for American Express I know that the timeit takes to query any of the payment and BACS systems and reconcile all the totals to ensure that there are no errors is about 4 hours and it can't be done whilst the systems are live.

Same day transfers are charged for because they require manual intervention.

Visage · 25 Sep 2006 at 15:21

Pete_m said:
I was hit with a fine for my cc being paid late because of the same thing. My statement said to pay by ''XXX'' date and I did, and can proove it, but the money took longer than expected for whatever reason and they raped me for £40....which is a lot when I was only paying £200 off the card

At the end of the day I've got no sympathy with people who cut their finances so fine that they're at the mercy of such things.

If I was in a position where I thought a transfer would take 5 days, but if I missed it it would cost me 40 quid then I'd double that time to make sure.

And has no-one heard of direct debits?

Alasdair · 25 Sep 2006 at 15:22

This is where the EU faster payments directive is going to be of interest. By end 2007, banks will be able to process same day payments "faster than BACS, cheaper than CHAPS". This will be for payments up to a certain limit to ensure CHAPS is still used.

In terms of actually sending funds across the internet, all you're actually doing is telling your bank to deduct funds from your account, and telling the beneficiary bank to credit their account. In order for a transfer of funds to occur, the banks need to transfer the actual money using the clearing process (whereby the operational balances held by both banks at the Bank of England are amended accordingly [/banker])

Paypal is different in that you are simply adjusting two Paypal balances, and another organisation is not involved. It's the crediting and debiting of the Paypal accounts that takes so long. Similarly, if you instruct a payment to an account within your bank, it should be done same business day as opposed to the normal BACS timescales as the funds aren't actually leaving your account.

OT: Paypal must have a lot of money on deposit with them, what do you reckon they do with it? Invest it, or just sit on it?

Efour · 25 Sep 2006 at 15:25

I dont use banks because of these very reasons.

I keep all my paper money in my Matress and have a very large collection of shiney pebbles that I swap for furs and smoked fish.

Madwelsh · 25 Sep 2006 at 15:28

grahamjenks said:
Also consider that someone has to develop and maintain not only the internet banking system but also all the back office systems that support the transaction you make and take for granted - so they're not exactly doing squat.

That did occur to me, however, if the banks already have the internet capability, the infrastructure is there. (Probably paid for from other scamming ways). The people saying that banking is a business, yes it is, but I ask you now is there anyway of existing in this society without a bank? Nope.. they've monopolised the way people manage their money, I also happen to think that banks now 'trivialise' people, their own customers. It's amazing the difference in attitude towards you, when you have some cash come in. I was very fortunate to have been given a sizeable inheritance, when it came to investing it, I was given the red-carpet treatment, expresso, blah,blah,blah..

8 years ago after I left uni in the second year due to family circumstance, the same bank giving me an overdraft of £1200 wanted it back within 3 months, even though I paid half and was trying my best, they still handed the account to the debt-collectors. They are stupid, there are 3 high street banks who will NEVER get a single penny off me til I die, I also put my friends off them and shall continue to do so. Banks have become ridiculous in their attitude towards their customers, they know that everyone needs a bank account, so they can treat you with contempt. Makes me sick tbh.

Oh and PS: If you ever open a longterm savings or isa account, invest in a good quality shredder. The amount of loans and credit being offered to me on a daily basis is saddening for the amount of trees that get pulped for this dross.

Madwelsh · 25 Sep 2006 at 15:31

Efour2 said:
I dont use banks because of these very reasons.

I keep all my paper money in my Matress and have a very large collection of shiney pebbles that I swap for furs and smoked fish.

That's a fine husky-sled you got there, swop you half a Beluga for it?