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

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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What I think would be most useful here, and similar to Lloyds (the only other bank which I have recent experience of), would be to:

  1. Run direct debits in the early morning, and those that succeed, fine.
  2. Any that fail due to insufficient funds are ‘suspended’
  3. A notification comes through to the user saying 'hey, look, there’s a DD here that’s about to decline, put some money in your account before (say) 3pm.
  4. The ‘suspended’ direct debits are then retried in the afternoon. Any that now succeed, fine. Any that fail are declined permanently.

Especially given that ‘pots’ are on their way, this would give the user ample time to fix the problem by transferring money in, or emptying a pot, before having to go through the pain of getting the requesting organisation to retry.

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Agreed. What I thought I’d written was that “it was a functional workaround” but thodse words obviously never made it out of my head.

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I have one direct debit where I can’t choose the date at all, it has to be the 1st. Luckily it’s not a big one, and I always make sure there’s money in the account the day before (even with my legacy banks, I don’t trust same day in/out to go smoothly!). But it seems to me this issue needs to be fixed before Monzo get 400,000 people on the current account, because there are some who won’t be able to shift the direct debit date, and could incur financial costs due to this behaviour. Not to mention the (unnecessary?) support load this issue could cause.

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Hi Tristan :wave:t3:, just wondering if there are any timescales on these adjustments and if so what they will be?
No worries if no progress yet

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@Jackcrwhitney

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Any reason Monzo processing Standing Orders on bank holidays? Rent came out today but a bill share payment from my girlfriend who’s with lloyds didn’t come through yesterday (set up for 1st) as expected nor today, as I half expected.

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Interesting. I can see how this has caused you a problem but my instinct is that it’s “better” for payments to come out on the date they’re meant to be sent, rather than giving the computers a pointless rest on weekends and bank holidays.

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We process standing orders as normal :slight_smile: I’m aware Lloyd’s Banking Group aren’t doing certain things this weekend (notably stuff won’t show up on your statement until Tuesday) but couldn’t say whether that includes SOs.

Processing standing orders on holidays is not normal, though. None of my banks do so, and its really disappointing that Monzo still don’t get this right!

I’m interested in why we shouldn’t process them on bank holidays? There is no technical reason (as they are just Faster Payments) not to :slight_smile:

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