# When do direct debits hit the account?



## disenchanted (11 Aug 2006)

I have direct debits coming out at various dates from my Bank Account. On a few occasions, when a Direct Debit was due on a Monday, I lodged enough to cover it in the mornings. Invariably, I end up with 'referral fees', even in one instance when I'd gone 'CENTS' into the red. I queried this practise with the Bank concerned and got the following reply:

'Debits and Credits are exchanged with other institutions at the start of business and the start of business begins at the close of business of the previous day'

In other words, as far as I can see, it's another method of screwing customers.

Is their read on this correct?


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## RainyDay (12 Aug 2006)

*Re: Start of Business / Close of Business*



disenchanted said:


> and the start of business begins at the close of business of the previous day'


SIr Humphrey would be proud! I've got apologies from my bank for 'bouncing' electronic payments when I was transferring in funds to meet that payment on the same day.


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## liteweight (12 Aug 2006)

*Re: Start of Business / Close of Business*

If you weren't informed of this up front, I'd insist on a refund and an updated statement. What if you're looking for a mortgage, or a loan? Lending institutions take a dim view of referral charges. At the very least, I'd put my objections in writing and request a written reply. I'd keep the corresponsence on file in case I needed it in the future!


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## Joe1234 (12 Aug 2006)

*Re: Start of Business / Close of Business*



disenchanted said:


> 'Debits and Credits are exchanged with other institutions at the start of business and the start of business begins at the close of business of the previous day'



So, if my salary is paid into my account on , say the first Thursday of the month, then I should be able to access that money on the wednesday night!!  That does not happen.


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## Brendan Burgess (12 Aug 2006)

*Re: Start of Business / Close of Business*

You should be able to access it just after midnight on Wednesday.


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## Brendan Burgess (12 Aug 2006)

I don't see why its screwing customers? 

The banks have to operate by very clear rules. A direct debit hits at a particular time. You now know this time so you can lodge money in advance. I think it would be unreasonable to expect them to wait until later that day to see if you are going to lodge cash. 

However, if it has only happended  a few times, you can ask for them to cancel the referral fees and agree to keep your account in order in future. It's good practice when you have direct debits to have cash ready for them well in advance or alternatively to have an overdraft facility in place.

Brendan


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## RainyDay (13 Aug 2006)

Brendan said:


> It's good practice when you have direct debits to have cash ready for them well in advance


Why well in advance? Why not keep your hard-earned in an interest-bearing account and transfer funds to meet the direct debit on the last possible day?


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## Joe1234 (13 Aug 2006)

*Re: Start of Business / Close of Business*



Brendan said:


> You should be able to access it just after midnight on Wednesday.



Having just checked our current account online, the early childcare supplement has been lodged, even though it is not due until tomorrow.  It must have been lodged yesterday as it was not there on Friday night.


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## Brendan Burgess (13 Aug 2006)

> Why not keep your hard-earned in an interest-bearing account and transfer funds to meet the direct debit on the last possible day?



Because most people are not that well organized and tend to miss the dates. Then when the debits bounce and they are charged referral fees, they blame the bank. Leaving things to the last minute is not a good idea generally and in this case, the amount of interest you could possibly earn is tiny.

Brendan


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## bond-007 (13 Aug 2006)

It seems with AIB that DD's and SO's hit during the night between 2am and 6am, so they are gone by the time the bank opens that morning. I find you cannot access your account online during these hours. When 6am rolls round it's all updated with overnight items from the clearing system such as cheques and wages coming from other banks.


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## nlgbbbblth (19 Aug 2006)

Direct debits "due" on a Monday will be on their way out of your account on the previous Saturday morning (after the Friday night update). They will appear on your bank statement as being debited on Monday.

banking systems update five nights a week

Monday night = 2.30am approx Tuesday
Tuesday night = 2.30am approx Wednesday
Wednesday night = 2.30am approx Thursday
Thursday night = 2.30am approx Friday
Friday night = 2.30am approx Saturday

*nothing happens* on a Saturday night or a Sunday night.

Similarly wages / salaries "due" on a Monday will be accessible on the previous Saturday morning via the ATM. They will appear on your bank statement as being credited on Monday.


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