Inter bank transfers over xmas public holidays

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Forums › Finance and wealth management › Inter bank transfers over xmas public holidays

openmedia

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#302837 27-Dec-2022 10:29

Does anyone else find statements like this from your bank ridiculous?

A reminder that payments between banks aren’t processed on public holidays. Any payments to or from other banks will next be processed on 28 December. Please remember to have enough funds in your account to cover any payments. Wishing you a safe and happy holiday period.

I'm trying to transfer xmas money over to our daughter and because we're with different banks she won't get it until Wednesday, but this doesn't stop the banks processing etpos and credit-card transactions.

All payments across NZ banks should be measured in seconds these days, 24/7 365 days.

Generally known online as OpenMedia, now working for Red Hat APAC as a Technology Evangelist and Portfolio Architect. Still playing with MythTV and digital media on the side.

Jase2985

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#3014206 27-Dec-2022 10:44

different networks, different checks and balances

mudguard

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#3014207 27-Dec-2022 10:46

The reason that isn't automatic is because of Anti Money Laundering compliance and making sure people who give their pins and passwords to scammers don't get ripped off straight away.

It's just one of those things, like the supermarket Armageddon that is Easter Saturday.

openmedia

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#3014213 27-Dec-2022 11:16

mudguard:

The reason that isn't automatic is because of Anti Money Laundering compliance and making sure people who give their pins and passwords to scammers don't get ripped off straight away.

It's just one of those things, like the supermarket Armageddon that is Easter Saturday.

And 99% of that analysis should be automated these days.

Lets be honest, there isn't someone sitting at a screen approving each transfer before they happen?

Generally known online as OpenMedia, now working for Red Hat APAC as a Technology Evangelist and Portfolio Architect. Still playing with MythTV and digital media on the side.

eracode

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#3014214 27-Dec-2022 11:21

Jase2985:

different networks, different cheques and balances

FTFY 😀

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eracode

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#3014216 27-Dec-2022 11:28

For some us this system works slightly to our advantage. Those receiving NZ Super - next due Tuesday next week - will receive it four days early this Friday due to Tuesday being a bank holiday.

Sometimes I just sit and think. Other times I just sit.

Linux

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#3014220 27-Dec-2022 11:45

Changes are coming 2023 and transfers will happen on weekends and public holidays

michaelmurfy

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#3014235 27-Dec-2022 12:07

All payments across NZ banks should be measured in seconds these days, 24/7 365 days.

So while I agree with you, this will never happen. So how payments work between banks is via “batch files” which is a CSV like file that is generated and sent between banks (via a file transfer protocol like SFTP) every 15mins. There are also additional checks via RBNZ that check if the bank has sufficient funds to process a transaction and also AML obligations that need to be followed which involves flagging potential “risky” transactions.

There is a change coming in very soon which will enable transfers to occur 24/7/365. There is the other risk of AML and Fraud happening with these transactions so somebody will still be monitoring potential high risk stuff. Most of the fraud analysis is done by machine learning but when a transaction is flagged it is sent to a human to look over (remember, this is real money).

There was historical reasons for bank holidays normally related to software / hardware upgrades of mainframes but these now happen outside of bank holidays. We’ve also got it very lucky in NZ where banks can do transfers from one another in 15mins or less as with Australia or even the US there is often another third party app to do transfers because banks take a couple of days to process transfers.

I also personally have accounts with most banks. I bank with ANZ but keep money in BNZ / ASB just in case. This way I can do instant transfers when required.

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OldGeek

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#3014237 27-Dec-2022 12:07

openmedia:

Does anyone else find statements like this from your bank ridiculous?

A reminder that payments between banks aren’t processed on public holidays. Any payments to or from other banks will next be processed on 28 December. Please remember to have enough funds in your account to cover any payments. Wishing you a safe and happy holiday period.

I'm trying to transfer xmas money over to our daughter and because we're with different banks she won't get it until Wednesday, but this doesn't stop the banks processing etpos and credit-card transactions.

All payments across NZ banks should be measured in seconds these days, 24/7 365 days.

It is not simply a technology issue: with interbank settlement the Reserve Bank is involved. This is a detailed explanation of what happens:

Processing payments | Banking Ombudsman Scheme (bankomb.org.nz)

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openmedia

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#3014415 27-Dec-2022 18:40

OldGeek:

It is not simply a technology issue: with interbank settlement the Reserve Bank is involved. This is a detailed explanation of what happens:

Processing payments | Banking Ombudsman Scheme (bankomb.org.nz)

Again a similar and very antiquated statement

Banks generally won’t process payments to accounts at other banks over weekends or on public holidays.

BUT

Banks do process eftpos and credit card payments

Sorry but with today's banking platforms not processing payments for 4 days due to a weekend + public holidays simply isn't acceptable.

Generally known online as OpenMedia, now working for Red Hat APAC as a Technology Evangelist and Portfolio Architect. Still playing with MythTV and digital media on the side.

cokemaster

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#3014417 27-Dec-2022 18:53

The industry is moving towards 7 day a week transfers. EFTPOS and credit cards aren’t settled instantly. A lot of moving pieces across a lot of organisations… these things take time, particularly when there is zero tolerance for failure.

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solaybro

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#3014426 27-Dec-2022 19:36

I have been reading the updates from Payments NZ and apparently they are in the early stages of realtime payments.

OldGeek

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#3014429 27-Dec-2022 19:45

openmedia:

OldGeek:

It is not simply a technology issue: with interbank settlement the Reserve Bank is involved. This is a detailed explanation of what happens:

Processing payments | Banking Ombudsman Scheme (bankomb.org.nz)

Again a similar and very antiquated statement

Banks generally won’t process payments to accounts at other banks over weekends or on public holidays.

BUT

Banks do process eftpos and credit card payments

Sorry but with today's banking platforms not processing payments for 4 days due to a weekend + public holidays simply isn't acceptable.

Not quite correct. Card issuers do process eftpos and credit card payment DEBITS real-time (because both are authorised real-time against the cardholder by the card issuer) but they do not CREDIT merchants real time. From my memory of banking merchants are credited once per day in bulk as a result of batch settlement from card issuers.

The issue is not necessarily with the banks but with the regulatory environment in which they operate - as been explained by @michaelmurfy. I was also caught up in this on Christmas Eve but checked my bank deadlines (clearly outlined online) and made the transfers before the well-advertised 10pm deadline.

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nztim

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#3014432 27-Dec-2022 20:13

Also I should note eftops transactions on are NOT instant transfers

When you present your card to the terminal a “pre authorisation” occurs

Those funds are held by your bank and the terminal shows accepted, and the store knows your good for the funds and lets you take the goods

Then, on the next business day the transfer actually happens and money moves from your account to theirs

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timmmay

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#3014434 27-Dec-2022 20:37

Computers need holidays too...