Receiving payment for car via CHAPS or BACS?
Receiving payment for car via CHAPS or BACS?
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eastsider

Original Poster:

1,101 posts

241 months

Tuesday 12th June 2012
quotequote all
Sorry if this has been asked before, search doesn't return much. Usually when I've sold cars in the past its been under £5k and I've dealt in cash.

This time my buyer wants to make BACS payment direct to my account (£16k). My bank advise that this could take several days to credit, instead use CHAPS (with £20 ish fee) is the only guaranteed same day service. Faster payments (account to account direct) can't be used as max amount on that £10k.

Can a CHAPS or indeed BACS payment be 'reclaimed' at all?

Any known scams like this I should be aware of? I have searched didn't find anything except the obvious.

Of course I won't release car until funds credit to my account, but it seems an awkward few hours waiting around for that is the only option?

Any advice welcome.
cheers

Paul Dishman

5,077 posts

255 months

Tuesday 12th June 2012
quotequote all
I thought CHAPS was almost instant and can't be reversed-its used for large amounts such as house purchases. Probably worth paying the fee on this occasion

anonymous-user

72 months

Tuesday 12th June 2012
quotequote all


Sorry getmecoat

redgriff500

28,982 posts

281 months

Tuesday 12th June 2012
quotequote all
I have accepted both without issue.

But I insisted they pay me 3 days BEFORE they collect the car.

If they don't like that then they can simply bring me the cash.


dhariwab

642 posts

169 months

Tuesday 12th June 2012
quotequote all
In spite of what the banks say it still takes days for the money to clear esp if the money is sent after 3pm. Been there done it.

After_Shock

8,751 posts

238 months

Tuesday 12th June 2012
quotequote all
Thought BACS/CHAPS had been got rid of at the start of the year?

All payments are supposed to be instant now under transfer with no option for one that takes a while to clear.

All that jazz

7,632 posts

164 months

Tuesday 12th June 2012
quotequote all
Generally, CHAPS are only a same day transfer if you do them before lunchtime/early afternoon. No idea what the current status is with BACS/faster payments and all that jazz.

northandy

3,522 posts

239 months

Tuesday 12th June 2012
quotequote all
Make sure it is a chaps payment, a known scam is buyer says its done, you look at you account and lo and behold its showing, however they have used a dodgy cheque and paid it in over the counter at a branch of your bank, a few days later it bounces after the car has gone.

All that jazz

7,632 posts

164 months

Tuesday 12th June 2012
quotequote all
northandy said:
Make sure it is a chaps payment, a known scam is buyer says its done, you look at you account and lo and behold its showing, however they have used a dodgy cheque and paid it in over the counter at a branch of your bank, a few days later it bounces after the car has gone.
It'll say on your account statement what sort of payment it is.

northandy

3,522 posts

239 months

Tuesday 12th June 2012
quotequote all
All that jazz said:
It'll say on your account statement what sort of payment it is.
It will say bgc for a cheque, but would everyone check?. Id be calling my bank just to make sure before releasing the car

tjlazer

875 posts

192 months

Tuesday 12th June 2012
quotequote all
Faster payment with the same bank should be instant. I did this with my buyer last weekend. If its a different bank there may be a security hold up but it worked great for me and no fees for the buyer.

After_Shock

8,751 posts

238 months

Tuesday 12th June 2012
quotequote all
northandy said:
It will say bgc for a cheque, but would everyone check?. Id be calling my bank just to make sure before releasing the car
Now this is confusing.

I was sent a deposit for a car on Sunday during the day via a bank transfer, it showed up on my account also on the Sunday and says bgc on it, I re-checked my account on Monday and it was still showing and still says bgc.

How can it be a bgc when it was sent electronically on the Sunday?

EddieFelson

1,168 posts

232 months

Tuesday 12th June 2012
quotequote all
Split the payment to make it under the £10k fast transfer limited. You have to wait 24 hrs between the payments.

btdk5

1,861 posts

208 months

Tuesday 12th June 2012
quotequote all
EddieFelson said:
Split the payment to make it under the £10k fast transfer limited. You have to wait 24 hrs between the payments.
Faster payment limit is now 100k and had been since january 1st.

Instant transfer which cannot be reversed without the account holders permission once credited.

redgriff500

28,982 posts

281 months

Tuesday 12th June 2012
quotequote all
After_Shock said:
Thought BACS/CHAPS had been got rid of at the start of the year?
No I had to pay for a CHAPS payment to transfer £85k as they'd only let me do it in branch and the interest on it is more than the fee and I'm not allowed to transfer more than £10k a day online.

GreigM

6,740 posts

267 months

Tuesday 12th June 2012
quotequote all
northandy said:
It will say bgc for a cheque, but would everyone check?. Id be calling my bank just to make sure before releasing the car
BGC doesn't necessarily mean a cheque and has nothing to do with whether the money has cleared or not. It means Bank Giro Credit and generally means that a pay-in slip was used with whatever method of payment was made.

You have 3 methods,

CHAPS - large amounts, authorised in advance, stricter security than it used to be (usually has to be arranged in advance, sometimes with a written instruction), but means you can transfer in a day.

BACS - takes 3 to 4 days, maximum of £10K a day

FPS - basically (somewhat) instant BACS. Between big banks is usually seconds, in most cases its same day or next day, but strictly speaking it can be a maximum of 3 days. Maximum value can be determined by the senders bank, but usually around £10K.

For the recipient there is no difference - once the money is in your account it cannot be reversed except in exceptional circumstances (i.e. court instruction as the money used to send it was fraudulent etc) without the recipients approval. This is why you need to be 100% sure of account numbers when sending the money that you've typed in the correct account numbers etc.

For the recipient CHAPS/BACS/FPS are by far the safest way of getting paid for the vehicle.

Fox-

13,465 posts

264 months

Tuesday 12th June 2012
quotequote all
Why not have him send you £9999 and £6001 via two seperate Faster Payments transactions?

HarryW

15,655 posts

287 months

Tuesday 12th June 2012
quotequote all
I've done bank transfers that clear inside 2 hours, normally within minutes, when buying cars are we saying that this method is flawed?
Admittedly for less than 10k, but not far short.

EddieFelson

1,168 posts

232 months

Wednesday 13th June 2012
quotequote all
btdk5 said:
Faster payment limit is now 100k and had been since january 1st.

Instant transfer which cannot be reversed without the account holders permission once credited.
May well be but a lot of banks have a £10k faster payment limit for personal accounts. First Direct/HSBC for example as I found last month.

After_Shock

8,751 posts

238 months

Wednesday 13th June 2012
quotequote all
redgriff500 said:
No I had to pay for a CHAPS payment to transfer £85k as they'd only let me do it in branch and the interest on it is more than the fee and I'm not allowed to transfer more than £10k a day online.
Maybes its been scrapped on amounts less than £10k then.