Is a bank transfer safe for a seller?
Discussion
I’ve accepted Faster Payments bank transfers for the sale of cars before and it’s been without issue and cannot be revered either and is free (unlike CHAPS or SWIFT):
http://www.fasterpayments.org.uk/faqs
http://www.fasterpayments.org.uk/faqs
Be careful. I was nearly caught out like this.
I sold an 18k Rolex watch on eBay and the buyer wanted to pay cash into my bank. I said ok. I checked the balance and it showed the money in there but when I looked properly it was paid by cheque.
I told the buyer to wait for it to clear. About 4 or 5 days later it had cleared. Luckily I phoned my bank and checked that everything was fine. They informed me that the cheque wasn't fully clear until after the certainty date, which was about 10 days.
Surely enough after about 7 days the money disappeared - a stolen cheque book was used!
Luckily I still had the watch!
I sold an 18k Rolex watch on eBay and the buyer wanted to pay cash into my bank. I said ok. I checked the balance and it showed the money in there but when I looked properly it was paid by cheque.
I told the buyer to wait for it to clear. About 4 or 5 days later it had cleared. Luckily I phoned my bank and checked that everything was fine. They informed me that the cheque wasn't fully clear until after the certainty date, which was about 10 days.
Surely enough after about 7 days the money disappeared - a stolen cheque book was used!
Luckily I still had the watch!
alorotom said:
I’ve accepted Faster Payments bank transfers for the sale of cars before and it’s been without issue and cannot be revered either and is free (unlike CHAPS or SWIFT):
The last car I bought (privately), I sent a £5 payment as a test, and then when collecting it I sent the full amount (£5,500ish, so not a massive amount). Money didn't arrive, called bank, they said it was sent ok and the recipient/seller should check with their bank. Their bank said it was pending. Called my bank, they said it was in fact scheduled to be sent tomorrow, I said that the confirmation said it had been sent immediately, but alas no luck. They cancelled the transaction and I tried again, same result, I screenshotted the confirmation that time 
They next day my bank said it was due to go at some specific time but eventually at 5pm they said it was actually held for security checks and released it immediately when I asked when the checks were going to be made.
Anyway, the advice to readers is to not entirely rely on Faster Payments going through immediately. The seller actually let me take the car before the payment went through, however he was a well-built lorry driver and I commented he could easily kick my ass if I didn't pay up
Its very difficult to get a faster payments back. I have just been through this after a payment was sent in error and it took 8 weeks.
I would just do your due dil on the person / company buying and make sure they are real. If you cant establish that then use caution. In terms of companies its quite easy these days to verify if a company is real. Facebook is a good start, they are not going to create a fake facebook account 6 years ago and post hundreds of posts for a 9 grand mini digger. IYSWIM.
I would just do your due dil on the person / company buying and make sure they are real. If you cant establish that then use caution. In terms of companies its quite easy these days to verify if a company is real. Facebook is a good start, they are not going to create a fake facebook account 6 years ago and post hundreds of posts for a 9 grand mini digger. IYSWIM.
As far as I’m aware, faster payments (ie. use your banking app to send money) is safe for the seller.
However, there is a catch as I discovered when I bought my car.
It can take hours for the payment to go through and your bank won’t tell you anything!
When I bought my Chimaera, I transferred £9500 to the seller. After an hour I called my bank and they told me the transfer was sent. The sellers bank told him that no payment had been received.
The payment finally hit his account 10 hours later.
However, there is a catch as I discovered when I bought my car.
It can take hours for the payment to go through and your bank won’t tell you anything!
When I bought my Chimaera, I transferred £9500 to the seller. After an hour I called my bank and they told me the transfer was sent. The sellers bank told him that no payment had been received.
The payment finally hit his account 10 hours later.
Best thing is to go with him to his bank and ask him to take the cash out in cash from the tellers and have the teller count it in front of you and give it to you.
Then (if you bank with the same bank), pay the same cash all back in again into your account. Very simple.
If you don't bank with his bank, find a mate who does and who'Il transfer you the cash once you pay it into his/her account.
That's what I did when I sold my Golf.
Then (if you bank with the same bank), pay the same cash all back in again into your account. Very simple.
If you don't bank with his bank, find a mate who does and who'Il transfer you the cash once you pay it into his/her account.
That's what I did when I sold my Golf.
RichS said:
Best thing is to go with him to his bank and ask him to take the cash out in cash from the tellers and have the teller count it in front of you and give it to you.
Then (if you bank with the same bank), pay the same cash all back in again into your account. Very simple.
If you don't bank with his bank, find a mate who does and who'Il transfer you the cash once you pay it into his/her account.
That's what I did when I sold my Golf.
Then (if you bank with the same bank), pay the same cash all back in again into your account. Very simple.
If you don't bank with his bank, find a mate who does and who'Il transfer you the cash once you pay it into his/her account.
That's what I did when I sold my Golf.
That's the opposite of simple for many people who don't have a bank nearbyThe best thing to do is use Faster Payments, or swallow the £25 fee and do a CHAPS payment. Include the Reg Number or other shizzle as a payment reference so it is clear what the money is for. Once the money is in, it's all done and you can move it around.
The only ballache with Faster Payments is the security checks that come up, but you can prevent this by a) sending a test payment and b) calling your bank and telling them about the upcoming transfer. It doesn't always work, but sometimes they can do it - Halifax did it for me when I paid a large sum for my 996 last summer, so the payment cleared within 10 minutes.
Jefferson Steelflex said:
That's the opposite of simple for many people who don't have a bank nearbyThe best thing to do is use Faster Payments, or swallow the £25 fee and do a CHAPS payment. Include the Reg Number or other shizzle as a payment reference so it is clear what the money is for. Once the money is in, it's all done and you can move it around.
The only ballache with Faster Payments is the security checks that come up, but you can prevent this by a) sending a test payment and b) calling your bank and telling them about the upcoming transfer. It doesn't always work, but sometimes they can do it - Halifax did it for me when I paid a large sum for my 996 last summer, so the payment cleared within 10 minutes.
when I bought my 996 I paid it in cash and it was a faff to go to the bank, get the cash, carry it around, give it to the seller, go to his bank together for deposit, wait for it to be verified as not fake and then finally leave.
Bank transfers are easier. But yes, always do your own research first.
Ive never come across these security issues I have to admit - but there again the max i have used Faster for is £16k and the vast majority of transactions I use it for are under £2k and theyve all been present in the accounts within 30mins.
Always good to hear others' experiences though
Always good to hear others' experiences though
simonr100 said:
Be careful. I was nearly caught out like this.
I sold an 18k Rolex watch on eBay and the buyer wanted to pay cash into my bank. I said ok. I checked the balance and it showed the money in there but when I looked properly it was paid by cheque.
I told the buyer to wait for it to clear. About 4 or 5 days later it had cleared. Luckily I phoned my bank and checked that everything was fine. They informed me that the cheque wasn't fully clear until after the certainty date, which was about 10 days.
Surely enough after about 7 days the money disappeared - a stolen cheque book was used!
Luckily I still had the watch!
I presume that was before the cheque clearance system was simplified in 2007, to the 2-4-6 system. Day 2 - interest starts. Day 4 - you can withdraw. Day 6 - it's definitely, permanently yours.I sold an 18k Rolex watch on eBay and the buyer wanted to pay cash into my bank. I said ok. I checked the balance and it showed the money in there but when I looked properly it was paid by cheque.
I told the buyer to wait for it to clear. About 4 or 5 days later it had cleared. Luckily I phoned my bank and checked that everything was fine. They informed me that the cheque wasn't fully clear until after the certainty date, which was about 10 days.
Surely enough after about 7 days the money disappeared - a stolen cheque book was used!
Luckily I still had the watch!
https://www.chequeandcredit.co.uk/information-hub/...
Cheque and Credit Clearing Company FAQ said:
Q - What happens if a cheque is found to be fraudulent after the end of the sixth working day after I have paid in my cheque?
A - You are protected and can keep the funds from the cheque provided you are not a knowing party to fraud. If there is a dispute, each case would be looked at on an individual basis, and you can seek redress through your bank or building society's own formal complaints procedure. Under BCOBS (the Banking Conduct of Business Sourcebook) all banks and building societies are obliged to tell their customers how to go about this. Failing satisfactory resolution, you can refer your complaint to an independent assessment by the Financial Ombudsman Service.
Before that change, it was awful - there was no upper timescale. If the issuing bank took six months to decide it was duff, then the money could disappear after six months.A - You are protected and can keep the funds from the cheque provided you are not a knowing party to fraud. If there is a dispute, each case would be looked at on an individual basis, and you can seek redress through your bank or building society's own formal complaints procedure. Under BCOBS (the Banking Conduct of Business Sourcebook) all banks and building societies are obliged to tell their customers how to go about this. Failing satisfactory resolution, you can refer your complaint to an independent assessment by the Financial Ombudsman Service.
Bank transfers can also be fraudulent. When the money they transfer has been skimmed of other accounts (via fraud) and then sent to a compromised account which they use for the transfer.
Once the fraud is discovered the bank reverse it and your dad goes into o/draft as money wasn't the 'buyers' in the first place.
(I work in a bank btw)
Once the fraud is discovered the bank reverse it and your dad goes into o/draft as money wasn't the 'buyers' in the first place.
(I work in a bank btw)
When I was selling my S3 I called my bank and they told me that a bank transfer couldn’t be reversed without my permission and that it was completely safe! They didn’t say anything about the scenario above (fraud).
When the chap collected it I got him to meet me outside my work (police station) within the CCTV range, I photographed him, his driving license and made a note of the VRM of the car he arrived in. He was perfectly happy with this arrangement as I’d told him beforehand that I intended to do this (on the assumption that if he was dodgy he wouldn’t want to conduct his business outside a nick and be photographed) He transferred the money (£9k) via his online banking app and it arrived in seconds.
Conversely when I drove 5hrs to a BMW dealers to collect its replacement they insisted I couldn’t pay by card and I had to transfer the money (£22k) via bank transfer. This didn’t go well! My phone app, it transpires, had a daily limit of £10k so I had to log on via the main website. The money then got trapped in their fraud filter and despite numerous calls to their helpline and subsequent assurances that the money was being released immediately, it took 5hrs for the money to actually arrive with the dealers. I had to spend this time sat in the dealers whilst it snowed outside! By the time I actually got to leave it had snowed heavily for many hours and I had to drive 5hrs home in an M140i which was interesting!
So bank transfers can be a bloody pain in the arse! It’s still the way I’d choose to receive the money though, but I’d advise against it for purchases if you’re travelling a long way!
When the chap collected it I got him to meet me outside my work (police station) within the CCTV range, I photographed him, his driving license and made a note of the VRM of the car he arrived in. He was perfectly happy with this arrangement as I’d told him beforehand that I intended to do this (on the assumption that if he was dodgy he wouldn’t want to conduct his business outside a nick and be photographed) He transferred the money (£9k) via his online banking app and it arrived in seconds.
Conversely when I drove 5hrs to a BMW dealers to collect its replacement they insisted I couldn’t pay by card and I had to transfer the money (£22k) via bank transfer. This didn’t go well! My phone app, it transpires, had a daily limit of £10k so I had to log on via the main website. The money then got trapped in their fraud filter and despite numerous calls to their helpline and subsequent assurances that the money was being released immediately, it took 5hrs for the money to actually arrive with the dealers. I had to spend this time sat in the dealers whilst it snowed outside! By the time I actually got to leave it had snowed heavily for many hours and I had to drive 5hrs home in an M140i which was interesting!
So bank transfers can be a bloody pain in the arse! It’s still the way I’d choose to receive the money though, but I’d advise against it for purchases if you’re travelling a long way!
Gassing Station | The Lounge | Top of Page | What's New | My Stuff