Credit and debit same day - how are low balances handled?

That’s a fair point. If it is processed via BACS then it should go through before DD & SO are processed (gas for me before), however if you are paid by Faster Payments then that’s another ball game, as it then depends what time they process the payments.

If overdrafts roll out with the CA, surely the account will just go overdrawn and then back into credit the same day and so there will be no charge?

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Though not everyone will want to take out an overdraft, so it would still be good for the credits to happen before the debits. Or at least for the debits to be re-tried at the end of the day if they initially fail.

Credits should always be shown before debits made on the same day.

Unless of course you make a bank transfer (debit) and then receive a bank transfer (credit) the same day; however if a salary payment (IN) is received the same day that a Direct Debit or Standing Order is made (OUT) then the IN should be shown before the OUT.

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It would be really disappointing if Monzo made a fuss about these payments, wouldn’t it?

I have accounts with Santander, TSB, Barclays and Natwest, and have run into this situation in each of them (it’s that month that I decided to get more organised :blush:), without having an overdraft agreement in place for any of them. For all of them I could simply transfer some money in by 3, 4, or 5pm (slightly different deadline for different banks) and they’d not charge overdraft fees, not report to referencing agencies, and not return the SO or DD. It’s as if the whole thing never happened.

I would hope that for all of Monzo’s feel-good, we-are-always-our-customer’s-friends, have-a-hug-emoji approach they’d at least not be worse than those dinosaur legacy banks. It’s a shame, though, that there is absolutely no information about this on their website. Contrast this with Barclays, Santander and TSB and it’s pretty prominent on all their websites.

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Good questions! I’ve just checked and we can choose when to debit and credit these sorts of payments — they currently happen at the same time (about 3am I think). It’s on our list to improve (so add credits before taking debits), but for now, we’d advise to try and avoid setting them up for exactly the same day :slight_smile:

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Do you also process direct debits, credits or standing orders on weekends as well?

I don’t know if work paying me on the Friday instead of the weekend, if payday falls then, is my work being smart or the bank being smart or if you’ll be a different smart or if some third party controls the interbank batch processes.

(Edit) do you also process these transactions on bank holidays?

My second wage was just paid in to Monzo. I had direct debits set up to go out on the day I get paid.

I’ve always done it like this with every bank ever (sometimes there’s no choice!) and never had a problem.

However, with Monzo, I just discovered that it declines them!
If you go in to the transaction details and look at the timing, they all state 0200 as the time my pay went in and the time the direct debits were rejected.

I understand other banks kind of pause the outgoing DDs till about 7am to get around this? Some DDs only let you select the 1st or 15th and not a custom date - so this is always going to be a potential problem. Normally I’d have a small overdraft just in case - but they’re not open to Android users yet :confused:

Luckily, they were only two charity payments - but this could have been a problem. Does it try again later in the day?

20171115_052916

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No, annoyingly Monzo don’t retry payments yet

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This has been discussed as something that may change in the future as they scale up but, for the moment, the recommendation is to set things up for the day after payday. It’s not impossible that an in-app chat will provoke a retry but that’s an obviously manual process that isn’t useable monthly or for 10s of thousands of people.

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Hi have direct debits and standing orders go out on my pay day and everything processes at 3am normally so this is a bit weird

When this unfortunately happened to me they advised it was something they were working on. As for retrying sadly they said they can no longer do this manually as they don’t have the tools for it anymore.

I did note that people on the community were able to have it done but they assured me a change meant this was no longer possible. They advice was to contact each company to arrange alternative payment

Exact same thing happened to me today. Wages in at 2am DD’s taken at 2am and declined. Also COPs said they can’t set them to retry so best sort my phone bill out manually

Well that’s rather frustrating. Fortunately I’m not in that position since payday moved a few years ago from 31st to 26th and my first DDs were always on the 1st. It’s something I’ll definitely avoid now.

I think a more sensible approach of processing ‘ins’ before ‘outs’ on a given day ought to be the default behaviour, though.

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Standing orders went out fine though, so they obviouslybprocess after “ins”

I think this is likely to be more of an issue as people migrate as well. Especially when people use CASS to switch, if it worked at their prior bank they won’t think twice when going to Monzo.

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to have to pay your phone bill manually because Monzo incapable of processing BACS Direct Debits after BACS Credits is unbelievable. Also it will incurr you more money as once you stop using Direct Debit BT charge more for manual payments

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I’ve never actually had this issue interestingly. My standing orders went out after my salary came in :confused:

Clearly moving things by a day will resolve the immediate problem without stopping the use of DD altogether so I don’t think that’s an issue.

You’re probably right about CASS customers, though, and quite likely many who are into that pattern use before transferring from the prepaid programme (unless they’re forum vampires like some of us).

(I did search for a thread before I posted that new topic - didn’t find this!)

Stupid thing is - I actually had money in my account last night but before I went to bed I thought, ‘Oh, payday tomorrow…’ Then transferred my remaining balance to pay off a credit card, leaving my balance at £0.00 (for a few hours until I got paid).

Beta, testing, I understand. I do think this should be a priority to fix though. As you do expect the basic functions to work the same as legacy accounts.

Some of my direct debits I can’t change the date on or only have limited options (1st or 15th for example) so changing for a day later is not really a fix.

These days I’m comfortably off and it’s just an annoyance - but when I was younger and lived more payday to payday that could have really screwed things up for me.

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