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Do banks credit before they debit or the other way round?

I taxed my car this afternoon using the DVLA site. After I had finished, I checked my bank account and was horrified to note that the payment had put me £20 in the red. I immediately (max 7 mins) transferred some money by internet banking from my savings account to rectify the matter and I'm just wondering whether I'll now get a letter and a fine for the 7 minute unauthorised overdraft of £20.

I know it used to be the case that, in a banking day, credits were applied before debits but I'm not sure whether this is still the case today.

Reply to
Alasdair
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In message , Alasdair writes

Credits werent credited first. The order was generally that 'automated' and certain items already captured by the system were already 'preloaded' as it were at the beginning of the business day. This meant that BACS credits & debits and the cheques presented via the clearing were processed before the business day started. Manual transactions, including at one time the credit clearing, together with counter transactions etc., were then input during the day but their timing didnt matter because a new balance was not struck until the end of the day.

In any event you should be OK because you werent overdrawn at the end of the day.

Reply to
John Boyle

I bank at Lloyds TSB and I have a few accounts and one I use for direct debits, etc. I would transfer money in every few days but I'd never been sure how much was needed so I started to check every morning. I was told that I had to have the money in the account by the end of the day. Once I was busy in the morning and I didn't check the account until the afternoon and I saw that they'd rejected a direct debit (for about £20!) and charged me £30 as well! When I complained they said that now the "computer" looked at the account at 11 am and rejected direct debits then. They refunded the charges but now I have to make sure I check earlier - otherwise I have to complain and check for their refund which takes about a month!

Reply to
Peter Saxton

In message , Peter Saxton writes

Yes, I understand some banks are taking the cowards way out and doing what you describe. Despicable.

Reply to
John Boyle

Its a bit swings and roundabouts really, we make our pay/dont pay decisions in the range 03:00-07:00 in my experience, but in terms fees/ interest dont consider the position until the end of the day. So as long as a 'bills account' has a formal overdraft (or an informal overdraft request is agreed) to cover all the potential DD/SOs etc, then the decisions will be to pay, but it wouldnt matter if it wasnt until up to 23:59 when funds were placed to the account for overdraft arrangement fees and interest calculation purposes.

Ian

Reply to
ian.tomes

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