BACS receipt cut off time

Received a substantial payment from a direct savings bank today by 3 day BACS payment to a natwest current account which I then wanted to pay out by CHAPS, went in this morning to arrange the payment, after having done all the paperwork the clerk went away to photocopy the id and sort it out, when she came back she said that the payment would go out first thing Monday because until 3pm the payment could be reversed and 3pm was the cut of time for the CHAPS payment.

Now I have never had problems drawing funds received electronically before and being cynical i am a bit suspicious of this, my thoughts are

natwest are pulling a fast one and are deliberately delaying payments so they have money for one working day (which unfortunately includes the weekend)

or

the receipt/payment is so large/unusual for an account with a usual balance of 100 that it is delayed due to notification NCIS and subsequent clearance and the tale told was a line spun to not fall foul of tipping off rules

or course it could be true but they usually waive this on small things like wage payments (as I know from experience at work BACS payments can be reversed after 3pm on the crediting day)

Your thought would be appreciated

Chris

Reply to
Chris
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before sending on funds. A friendly word with your account manager should be enough to clarify matters.You don't quote what the substantial amount is but your actions are similar to that of money laundering ie an account with normal small balance suddenly credited with a large sum and immediately transferred out again. I am in no way suggesting that you are money laundering only that it looks to me that Nat West are taking the prudent approach in making checks first. Just another point could you not have made the transfer direct from your savings account to the intended beneficiary? (or is this not allowed?) Eric

Reply to
Eric Jones

This isn't at all unusual. I've had the same experience with other banks.

Jon

Reply to
Jon S Green

I had to try to contain my laughter there, I suppose if that is what the reporting policy say then that is what they have to do, I know if auditors or solicitors report things that they pick up to NCIS then they can't do things like sign off accounts or complete conveyances until it is cleared by NCIS and just have to delay to the client.

Lets just say enough to you could probably buy a reasonable 2 up 2 down house in somewhere like stoke on trent.

No its one those helpful accounts where you can only pay money in and out by a direct debit to the specified linked current account.

It could look a little suspicious but a) its the way the savings bank operates its accounts which wouldn't be difficult to verify and b) there is the corresponding direct debit on the current account with the same payment reference to pay money into the savings account.

It is irritating that it was a Friday that it was credited as opposed to any other day as it means it earns no interest for another couple of days (tell a lie it should be earning interest at the market leading rate of 0.1% which is hardly much better)

Reply to
Chris

With that amount I would definitely be expecting them to do some checking.

Marcus

Reply to
Marcus Fox

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