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Originally Posted by nffc
yes but surely this could be done instantaneously, with the bandwidth and technological advances we have now cf when that system was introduced.
or even cut out the "middle man" and send it branch-branch direct, obviously this could be done via sort code.
Oh right. Abbey = ****.
Still think it's a con though, they could do it an awful lot faster but don't as they make a packet out of it, imagine the amount of money transferred that will be "in limbo" for 3 days. For that, they don't have to pay interest and if it takes you out of your arranged limit, you have to pay interest.
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Branch to Branch - Sort codes by branch are a throwback to when banking was done by paper and that paper really did have to travel to that branch to be entered into it's ledgers, basically nowdays (from the banks POV) you effectivly have a 14 digit account number. You can see this from the IBAN that is being printed on all bank statements now, your International Bank Account Number.
The thing is the public want instant transfer of deposits and 3 day clearing for withdrawals, if you remember when switch was first introduced they had to put an artificial 3 day delay into the process as people did not want to move from cheques as the money came out of their account faster. That seems to have dissapeared now (well HSBC/First Direct have gone 24 hr processing anyway. I remember a letter I got from them earlier this year about this and the fact that DDs and SOs could leave my account on the weekend (if that was the date they were set to go), so to ensure that funds were available (for scenarios when your pay arrives on Monday 21, but normally shows on the 20th and you have bills going out on the 20th).
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Originally Posted by dellwear
Thats because they don't have their own clearing houses and use time at other banks to clear cheques deposited.
Its a ll a bit of a con really, I'd have thought we'd have moved on since then but they won't until they can make money from you another way, after all the banks are so poor. How they cope with their multi-billion pound profits each year I just don't know  |
But that should only add 2 days to the clearing process
Day 1 Principality to their clearer (e.g. Barclays)
Day 2 Barclays to BACS
Day 3 BACS
Day 4 Bacs to Barclays
Day 5 Barclays to Principality, not 7 days!
If Principality pulled their finger out and got their file to Barclays in time it could probably roll day 1 and 2 together also.