Banks to put four-day hold on suspicious payments

[Electric_Andy]

Is anyone else concerned about this? I'm all for increased security, but what if I go to someone's house to buy a car and I transfer them £3000, and it's then flagged as suspicious? The seller isn't going to let me drive away until the money has cleared. I'm not going to just leave knowing that they have my money and I have no car.

Or will it not apply to such transactions? After all, the person I'm paying is a "stranger", and I'm assuming some sort of coded computer system will be doing all the vetting?

 

[fossyant]

I would assume you'll be using your banking app to 'authorise' the payment, so it should go through.

 

[vickster]

I've always just paid cash (not that I've bought a car privately for about 15 years!).
Perhaps, you can inform the bank ahead of time so it can be cleared?

 

[Electric_Andy]

I would assume you'll be using your banking app to 'authorise' the payment, so it should go through.

yes I would in this scenario - so if I add the payee as a new person, in doing so I'm technically marking it as non-suspicious so it won't even get picked up? That's good to know

 

[vickster]

yes I would in this scenario - so if I add the payee as a new person, in doing so I'm technically marking it as non-suspicious so it won't even get picked up? That's good to know

As long as all the details match what the bank holds (not all banks are part of the recognition scheme as I found out when trying to put large sums of money into new savings accounts for my mum, e.g. Tesco Bank)

 

[Alex321]

yes I would in this scenario - so if I add the payee as a new person, in doing so I'm technically marking it as non-suspicious so it won't even get picked up? That's good to know

When I made a payment to my granddaughter a few months ago, I suspect that would have been held up, because my bank (actually building society) website wanted to refuse the transfer on the basis it looked like a scam.

I knew it wasn't and was able to push it through, but I suspect it would have been held up by this.

 

[vickster]

As long as all the details match what the bank holds (not all banks are part of the recognition scheme as I found out when trying to put large sums of money into new savings accounts for my mum, e.g. Tesco Bank)

I actually had a very illuminating discussion with Barclays about this at the time - essentially they admitted that they block pretty much ALL transactions (of any size) from the accounts of elderly customers to new payees and all are followed up with a phone call to confirm there's no scamming with the account holder who has to go through full security (I don't know what age this starts from 65/70?).

A pain when trying to do multiple transactions on someone else's behalf but reassuring (especially as they'll phone the customer from a call centre - mum knows not to talk to anyone who calls claiming to be from a bank etc, so I had to follow up every time with the fraud team, think I've spoken to everyone working in the team in the NW and NE!!).
I think the only one that went through without a hitch was to the solicitor. The ones to me and my brother didn't!
It reminds me to sort out power of attorney with Barclays!

 

[numbnuts]

A few years back I sold my sea kayak for £600, he paid cash, I took it to the bank and I was asked how I got all this money, I said I sold my kayak
he said " it must have been an expensive kayak, like he disbelieve me so it has been going on for some time.

 

[Jody]

Wonder if this is why my bank held onto a £1000 refund for over a week?

Paid and refunded in the same day for a bike hire but it was left as pending.

 

[Profpointy]

A few years back I sold my sea kayak for £600, he paid cash, I took it to the bank and I was asked how I got all this money, I said I sold my kayak
he said " it must have been an expensive kayak, like he disbelieve me so it has been going on for some time.

I guess a lay person would be astonished that a bike was over £100. My dad was enquiring about how much those e-bikes were (not for himself as he's well past it) but guessed they'd be expensive by which he meant £200

 

[Alex321]

Wonder if this is why my bank held onto a £1000 refund for over a week?

Paid and refunded in the same day for a bike hire but it was left as pending.

Very possibly. Transactions paid and refunded ion the same day probably trigger a "that is suspicious" event.

 

[Drago]

I actually had a very illuminating discussion with Barclays about this at the time - essentially they admitted that they block pretty much ALL transactions (of any size) from the accounts of elderly customers to new payees and all are followed up with a phone call to confirm there's no scamming with the account holder who has to go through full security (I don't know what age this starts from 65/70?).

A pain when trying to do multiple transactions on someone else's behalf but reassuring (especially as they'll phone the customer from a call centre - mum knows not to talk to anyone who calls claiming to be from a bank etc, so I had to follow up every time with the fraud team, think I've spoken to everyone working in the team in the NW and NE!!).
I think the only one that went through without a hitch was to the solicitor. The ones to me and my brother didn't!
It reminds me to sort out power of attorney with Barclays!

I'm only 56 and I'm already falling foul of this.

When I bought the camper I wanted to do a baking transfer of a large sum and, que surprise, the app blocked it.

Rang them up, told them what i was doing, it was a reputable firm trading for 4 decades, registered at company house, I know what im buying, and they still wouldn't do it.

So I drove over there and paid the 50k on my debit card and the transaction went straight through with the PIN without me having to open the app to confirm it, which defies all logic after them refusing the bank transfer.

I don't mind them doing some basic due diligence, but its established that I've got all my marbles, I'm not under duress, it's a legit purchase, they should authorise it. The banking code compels them to allow me to spend my money on on what I want, when I want, and blank refusing to allow me to do so on a legitimate is simply unlawful. My complaint is now in but I'm expecting they'll not back down and it'll go to the ombudsman.

 

[mustang1]

A few years back I sold my sea kayak for £600, he paid cash, I took it to the bank and I was asked how I got all this money, I said I sold my kayak
he said " it must have been an expensive kayak, like he disbelieve me so it has been going on for some time.

Imagine if someone sold their pinafello dogma for 15k!

At the bank:
What is all this cash for?
I sold my bike.
Wow I did not know motorbikes cost that much!
Err, it was a push bike.
Do you think I'm an idiot? Stand right there, I'm calling security.

 

[Psamathe]

It's a very difficult question. I don't watch it but I do happen to have seen some of the BBC "Scam Interceptors" TV programs and it is concerning how some people are so readily taken in and so ready to pass amounts that would devastate their finances to SCAMers.

I can see the scheme would protect those individuals whilst also being a real nuisance to others. Personally I suppose I'd rather be inconvenienced a little if it protects more vulnerable from being financially devastated - but that's my circumstances and I'd wonder what banks might be putting in place to facilitate faster transactions. eg I've had my bank block debit card transactions (in particular transfers to National Savings & Investments and I can see why given it's an external account outside their ability to recall funds). I now often call them in advance to warn them what I'll be doing and have found "work rounds).

Ian

 

[Psamathe]

Imagine if someone sold their pinafello dogma for 15k!

At the bank:
What is all this cash for?
I sold my bike.
Wow I did not know motorbikes cost that much!
Err, it was a push bike.
Do you think I'm an idiot? Stand right there, I'm calling security.

All my experience of the questions about funds (and when buying a house for cash I've certainly had those questions) and I always just say "savings" and they have a box to tick and no more questions asked.

IAn