Processing a debit?
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One of the reasons I don't like DDs is that several or more years ago when I was working, payday arrived which was the last day of the month and no cash into the bank. We were then informed the next day that the company had gone into administration and
no pay.In the meantime several DDs bounced and the fees amounted to over £300. The last thing you need when you have no ready money in the account. It took a lot of begging and pleading to get the bank to reverse the fees and that took about a month.
Although it should not happen again in the future, I am still wary of too many unnecessary DDs on my account, however the posting was about why the CC take 3 weeks to process a debit.
They didn't take 3 weeks to process the payment, you tried to pay 3 weeks early, so they kept that payment on file till your renewal date.
I'm sure the cc and many other organisations have been criticised for taking payment early in the past.
Bailey took my payment a few weeks ago for a product bought which was out of stock, I was not amused, normal practice I believe is payment made when the order is able to be processed.
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With NT and WWT, you get a free gift if you sign up to a DD when you first join. They hope they can reduce their admin costs in not having to chase for payment. However, if later you choose to pay annually by card they'll accept it.
Off topic here sorry .
Malcolm do you get your moneys worth being a member if these two organisations?
Write your comments here...We did last year but not so much this year.
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We've always paid most regular things by monthly DD, electric/gas/phone/council tax etc. If its a one off like house or car insurance then its paid in full but not on DD as we like to compare prices each year. Credit cards are paid by DD but the whole amount
each month. We both keep one eye on the bank accounts with us being away so much, so if anything comes out that shouldn't we are onto it usually within a few days. Wish our boys were as vigilant, both of them have made mistakes with not cancelling car insurance
DD's when taking out a new policy, hopefully they will have learnt from that but I wouldn't bet on it
Write your comments here...I pay my road tax monthly by direct debit so that it's automatically renewed each year. My car insurance is paid monthly by direct debit on my credit card.
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One of the reasons I don't like DDs is that several or more years ago when I was working, payday arrived which was the last day of the month and no cash into the bank. We were then informed the next day that the company had gone into administration and
no pay.In the meantime several DDs bounced and the fees amounted to over £300. The last thing you need when you have no ready money in the account. It took a lot of begging and pleading to get the bank to reverse the fees and that took about a month.
Although it should not happen again in the future, I am still wary of too many unnecessary DDs on my account, however the posting was about why the CC take 3 weeks to process a debit.
They didn't take 3 weeks to process the payment, you tried to pay 3 weeks early, so they kept that payment on file till your renewal date.
I'm sure the cc and many other organisations have been criticised for taking payment early in the past.
Bailey took my payment a few weeks ago for a product bought which was out of stock, I was not amused, normal practice I believe is payment made when the order is able to be processed.
They should have then rejected the payment however they chose to take 3 weeks to process the payment. Either way next year at renewal time, I will not bother until I get a reminder letter.
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MAny organisations who want you to pay by DD offer a monthly option - I wonder why the CC dont do that?
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I'm not sure but I think there is some additional cost. However, the road tax automatically renews this way.
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My annual membership fee is done online with no involvement of anyone else, In the past I have always gone along with, if I make a payment then irrespective of when it left my bank account, to me it had been spent from the day I made that payment and that sum of money was not available to me anymore. I had no need to care when it would be taken, it was spent.
So what if it was put on hold for three weeks, you renewed, it was spent in your eyes, job done.
That was in my budgeting days but retirement fortunately has been good to me, and I don't budget anymore.
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I'm not sure but I think there is some additional cost. However, the road tax automatically renews this way.
A quick Google seems to indicate that the fee for VED by monthly DD is an extra 5%, I think it could well be quite a bit extra for car insurance too.
While we do use DDs for lots of regular payments, we only do it where it costs the same as, or less than, paying annually.
The VED on our towcar is, unfortunately, huge, but luckily the little Smart Car is free.
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To get, slightly more, back on topic, money not leaving the bank when you expect it to is slightly annoying and can lead to mistakes being made.
While we have quite good pensions, we do need to make our savings work for us, so do not leave more than is necessary in our main account. I keep track on a spreadsheet of everything that is due to go out each month, some months it is all spent, some months
we need to top up the account, but several months have a surplus, so that is sent elsewhere to earn some interest.At present we have 2 cheques (yes, cheques!) that have not been presented and I have to keep remembering, when looking at whether the bank and I are in agreement, to leave an extra £72 in the account to cover them.
One has been outstanding for almost 12 months now so may well never be presented, but I cannot assume that.
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To get, slightly more, back on topic, money not leaving the bank when you expect it to is slightly annoying and can lead to mistakes being made.
While we have quite good pensions, we do need to make our savings work for us, so do not leave more than is necessary in our main account. I keep track on a spreadsheet of everything that is due to go out each month, some months it is all spent, some months
we need to top up the account, but several months have a surplus, so that is sent elsewhere to earn some interest.At present we have 2 cheques (yes, cheques!) that have not been presented and I have to keep remembering, when looking at whether the bank and I are in agreement, to leave an extra £72 in the account to cover them.
One has been outstanding for almost 12 months now so may well never be presented, but I cannot assume that.
Write your comments here...That kind of situation can be covered by having an overdraft facility. With interest rates so low, it costs very little to go overdrawn provided there's an agreed overdraft facility.
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We do have an arranged overdraft, but never use it. It was put in place years ago when we moved banks, and they have just left it there.
Our bank "rewards" us for banking with them, but only if we stay in credit, so going into overdraft by mistake can cost quite a few pounds between the daily fee and the loss of the "reward".
This would be very foolish when we have savings elsewhere!
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One has been outstanding for almost 12 months now so may well never be presented, but I cannot assume that.
I think they are only valid for 6 months in England. Is it different In Scotland K.
The idea that a cheque is invalid after a certain time is apparently a myth, but the receiving bank can decline to accept a cheque that they consider too old.
So no real rules to go on.
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One has been outstanding for almost 12 months now so may well never be presented, but I cannot assume that.
I think they are only valid for 6 months in England. Is it different In Scotland K.
The idea that a cheque is invalid after a certain time is apparently a myth,
but the receiving bank can decline to accept a cheque that they consider too old.So no real rules to go on.
You learn something every day. It is amazing how many of these myths there are about.
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It truly amazes me that many people never properly check their bank and credit card statements or whether bills are correct.
If you said to someone that you would pay them £100 for 5 minutes work, they would bite your arm off.
And yet they still fail to see payments going out of their bank because they cannot be bothered to check statements, bills etc. Incredible!
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It truly amazes me that many people never properly check their bank and credit card statements or whether bills are correct.
If you said to someone that you would pay them £100 for 5 minutes work, they would bite your arm off.
And yet they still fail to see payments going out of their bank because they cannot be bothered to check statements, bills etc. Incredible!
I argree without reservation on this. It used to amaze me at work that one of accounting staff, who was responisble for hundreds of thousands of pounds, not millions over his working life said he never checked he statements
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It seems ages since I last used cheques. These days nearly all payments are done online or by card or through internet banking. There's no longer any need to put a cheque in the post. Also, there used to be a £100 cheque guarantee card. It seems that is
no longer issued by banks either.0 -
I keep a close eye on incomings and outgoings in our accounts like KjellNN. Make sure I maximize income from any money we have, especially in these dire times for interest rates. Proud to be a rate tart . Always saved for our regular bills in a separate
account and paid quarterly until got better rates for DD's. It may only be pennies but better in my name than someone else's. I really think budgeting should be taught at school. Low interest rates won't always be available . I too am horrified at those
who don't check their bank accounts.0 -
Cheques are still very useful. That's why there was an outcry when the banks tried to remove them along with guarantee card. I know several people who use them in a daily/weekly basis. If you have an account that earns interest a few more days in your account
means a little bit more for me not everyone is happy to pay over the phone, do you really know that they don't keep the info you give them, they shouldn't but who can say??? Others don't like online or even have access to internet..........0 -
I keep everything as simple as possible, if there is a cheaper way of making a payment I use it. I would not pay anything early although some recipients might be pleased if I did. Running complicated systems is not for me, I'm trying to think ahead a bit
in case anyone else has to take over as I have had to do for my Mum.
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I couldn't agree more, not checking bank statements is just daft. There is no excuse nowadays as you can check it on your phone, computer, tablet etc. I was brought up by a very money aware parent (yorkshireman) he always drummed it into us to look after
our money, he would on occasions let us make a mistake just to teach us a lesson. He was not tight in fact the complete opposite, however he was very careful with what little money he had. I have tried to pass the lessons I learnt onto my boys, at times I
disspaired with their lackadaisical approach to money (especially the eldest) however he is now very good at getting VFM and knowing just how much money he has at any one time.0 -
I regularly check our bank statements online.
That way I can keep an eye on what Mrs N is spending our money on.
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It seems ages since I last used cheques. These days nearly all payments are done online or by card or through internet banking. There's no longer any need to put a cheque in the post. Also, there used to be a £100 cheque guarantee card. It seems that is no longer issued by banks either.
Malcolm, I agree up to as point, we use credit cards extensively, and have regular bills on DD, but there are some instances where a company does not take a CC or a debit card, so the only alternatives are cash or a cheque.
In this case, the very old cheque was for a purchase I made at a woodworking show, almost 12 months back, I do doubt it will ever be presented, but I am unwilling to pay my bank a fee to stop the cheque and then contact the company to see what they are playing at.
If they are not bothered to present the cheque, or have been so careless as to lose it, then that is their loss.
The second cheque I know will be presented eventually, it is for my wood turning club subs, but it is time all these clubs moved with the times and accepted bank transfers or debit card payments!
OH is treasurer for our local guide hall, she used to have to write a lot of cheques, but she has dragged them kicking and screaming into the 21st century and now the only ones that need a cheque are the cleaners.
They are next on her "hit list" !!
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The advent of internet banking and particularly phone apps make it so easy to keep a check on bank accounts and credit cards. I do this for both myself and mother for who I have POA. At least by looking regularly I should notice if there are any irregular payments, that the bank has not flagged up. In the bad old days when statements only came once a month, or you had to go to a hole in the wall it, was more difficult. Although I don't suppose there were so many scammers.
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One thing I like to do if I pay by a credit transfer into someone's account, is to send a small test amount first and get them to confirm receipt. I did read about someone inputting an account number one digit wrong and managing to send several thousand
to a wrong account, which then took some time to get back. At least by getting confirmation for five or ten pounds, I know I have input everything correctly on my phone, before I send several hundred.0 -
One thing I like to do if I pay by a credit transfer into someone's account, is to send a small test amount first and get them to confirm receipt.
I did read about someone inputting an account number one digit wrong and managing to send several thousand to a wrong account, which then took some time to get back. At least by getting confirmation for five or ten pounds, I know I have input
everything correctly on my phone, before I send several hundred.Would they get it back,
I understood that if its you that makes a mistake inputting the details the bank can only 'ask' the
recipient to return the money but has no powers to insist. Its one of the worries paying by Bacs. I do the same as you make a payment of £1 first just to check.0
