Over the past two weeks, I’ve noticed something unusual with Suncorp (my bank): any payment made to a new payee is withheld for 24 hours. This becomes frustrating when purchasing goods or services, as sellers generally expect instant payment.
I’m curious—do other banks have the same policy?
False. The "but everyone wants to blame banks for not protecting them" is a straw man to justify the nanny state behaviour of certain banks. The fact that only certain banks engage in this behaviour also tells you it;s got nothing to do with complying with anti money laundering or terrorism legislation or any other rules.
The whole point of PayID is to replace cash for quick private sales. Holding onto the funds for 24 hours would do little if anything to protect people from scams. It inconveniences people and makes them more likely to go to another bank that provides instant PayID transfers.
That was not the point of PayID. The point of PayID was to allow better mobility for consumers between banks. The idea was you could give payers like your employer your PayID address (email or mobile) so that when you change banks you could seamlessly connect your new account to your PayID address hassle free.
Funds would then flow to the new account without the payer needing to be notified.
It was meant to be like the laws that allow consumers to take their mobile number to a new telco, which back in the day you couldn't do. It was to reduce barriers to switching service providers and increase competition.
OSKO was to replace dated batch processing, but the banks didn't spend billions with the primary benefit of facilitating private sales.
Yep, CBA still does it. On top of that, it also holds for 24 hours on a whim even for those known/frequent payees. I rang CBA, apparently their "audit AI" selects transactions based on ?? and holds it. This is annoying my payees so I changed to ANZ - much better but let's see.
¯_(ツ)_/¯
ANZ bought Suncorp and when I called Suncorp, they said, it is not governed as per ANZ policies
The organisations incapability shouldn't be the cause. There are millions of banks worldwide. I don't think they all block the transfers for 24 hours.
Most Osko payments are immediate within seconds. Sometimes new payees take 24-hours to clear if the bank decides they need to do additional checks. You can’t change that.
Sure you can - change banks.
No need to put up with their crap
Yep. Missus had a 2k payment delayed for 24hrs, then a day later sent another 2k payment to same location and it was immediate.
So now it's going to take an extra 24 Hours for my payment to clear for me to receive my $3.5 Million in trunk boxes from Nigeria?
Normal.
Any Views
Don't care.
During that 24 hours, what happens?
Does the banking institution conduct some due diligence? Do they inform the customer to do some DD?
We use the money to go to the strippers and then next day in the office we shift clients funds around to make it all look ok
The banks have fraud systems which pickup transactions that meet certain rules designed to pickup potential fraud. Most of the transactions picked up by the systems are false positives. Delaying the transaction gives the bank's fraud team time to review such transactions and contact the customer if necessary. The lazy approach like CBA is to delay most transactions to new payees - especially higher amounts. The more helpful approach like NAB is to have better rules that hold/stop minimal transactions. Somewhere in the middle are banks that have a limit for PayID transactions (eg $1000 or $5000). NAB's approach may let a bit more fraud through though.
Delaying the transaction gives the bank…
…a boost to their capital adequacy ratios or a free loan to earn interest on.
Nothing happens. They just block this $ and wait if someone makes a noise. If no one raises any question they assume that this is legit LoL
Generally NAB is one of the best banks for not holding PayID payments. I have purchased vehicles twice for around $40,000 and done PayID transfers which arrived almost instantly.
Avoid CBA who is one of the worst at this. They often hold payments to new payees (payees are also considered new if the first transaction to them was less than 5 days ago).
They'll even hold it if you've already made a small payment to a new payee a week in advance before making a larger payment.
CBA does this too for large payments to a new recipient.
Yes, it is annoying, but it does give a measure of protection against unauthorized access to your account. The bank is protecting you and of course, itself.
The bank can't know whether your transaction is legitimate or going to a money mule.
CBA did it to me for a payment of just $50.
The whole point of PayID is to replace cash for quick private sales. It needs to be instant. Most banks do this. CBA is terrible.
Holding it for 24 hours doesn't resolve whether it's legitimate or going to a money mule.
This barely slows down scammers they adapt so quickly. They even told me about the CommBank no screenshot update (lol?)
I just got a scammer messaging me on Facebook, the message was as follows………..
Hey mate, if you can drop the $200 deposit in today I’ll head to the post office and get your iPhone packed for shipping. Since this is your first order with us, the bank holds funds for 24 hours before they clear, but once it shows up I’ll release the iPhone and you can pay the rest on arrival. Just letting you know a couple of other people have asked about this iPhone too, so the deposit makes sure it’s locked in for you. IMPORTANT! When you’ve done the transfer just send me a screenshot (CommBank app blocks screenshots but you can grab one from web banking). Cheers!
The whole point of PayID is to replace cash payments for private sales for things like FB marketplace sales.
If you need to hold it for 24 or how ever long it is then that defeats the entire purpose. Commbank is terrible for this.
I sold something for $50 and the guy sent the funds via Commbank PayID. It didn't clear into my account and I wouldn't give the item to the guy on the spot after waiting 20 mins for the money to come into my account. He wasn't happy about it. He ended up calling the bank and asked to get the funds fast tracked after going through security checks.
For just $50 I would just bring cash.
That's what I asked for in the ad but he didn't have any when he arrived and asked to PayID.
That's the last time I accepted PayID from a Commonwealth account.
Do they have a mobile app? What kind of security do you have on your phone? Fingerprint? Face recognition?
Yes they have all.. But they are blocking. They say all banks does this as per new RBA policy.
I use Suncorp and all new payee payments are instant. Might be a hold on your account.
It is only for new payees. Try transferring $ to a new payee > $50
My view is that it is the bank or organisations responsiblity to create a robust security system. Their failed technology capabilities sholdn't be at the cost of the end customers.
Pretty sure CommBank and some others do the same.
Everyone wants unrestricted and instant banking, while simultaneously blaming banks for not protecting them when they become the victim of a scam. They can't win.