Standing Orders


(Terry) #1

Just a quick question to the community, how exactly are standing orders processed by the banks?

The reason I ask is that my bank, for the 2nd time has “Forgot” to pay a standing order from my bank to another bank account and they can see no reason as to why it was not paid. The standing order comes out weekly.


(Josh Bray) #2

Have a look here.
http://m.moneyfacts.co.uk/guides/banking/what-is-a-standing-order170611/

But your bank should know why it hasn’t happened. I’d push them for answers.


#3

That guide says what standing orders are but doesn’t really say how they processed by a bank as was originally asked. It can depend on the bank but in many it is a semi-automated process requiring human intervention and that is where it tends to go wrong. Often your standing orders are loaded up on a diary like system and they check their is sufficient funds or overdraft facility to cover them and then they authorize them to be sent. Without naming particular banks some have been known to forget to send standing orders when a staff member ill or in a meeting!


(Josh Bray) #4

Tbh I don’t know much about how standing orders are done. That link was as close as I could find.


#5

all these things should and would be fully automated in a modern bank but most old banks have just computerized their old manual paper forms :slight_smile:


(Terry) #6

Wow, I’m surprised there is a human part to it, surely they process thousands every day?

I don’t suppose the unnamed bank begins with M (No Not Monzo!)? Haha


#7

There are banks still faxing forms to each other and popping envelopes with letters in the post when they could email each other. International payments are another area where manual intervention often takes place hence in some occassions only being able to give a rough exchange rate with the real rate not known until a person (often in another building) processes the transfer!


#8

While we may have moved away from branches with pens chained to desks unfortunately many banks are still chained to the past despite all their talk and new desks and carpet :joy: