Reply With QuoteShould be. That’s how I paid for my car. Made the transfer at the guy’s house, he checked his account and I drove away.
Just to be sure I don't give Sam the wrong advice, what precautions are necessary if someone pays for his motorbike via BACS? If it's showing in his account is he safe to let the bike go?
Should be. That’s how I paid for my car. Made the transfer at the guy’s house, he checked his account and I drove away.
And?Originally Posted by Aramis9
I won't.
Yes, was clear to me you were the buyer.
I just shared what I did, there was a buyer and a seller involved. Doesn’t matter which is which.
To be sure, I would check with the bank.
Having done a quick search online it seems to be suggesting that a BACS payment actually takes up to three days to clear and can theoretically be reversed during the first 24 hours.
is it over the top to tell any buyer that cash will be needed if the bike is intended to be ridden away on the day?
Is an internet banking transfer classed as BACS? I didn't think so
No, BT is Faster Payments I think. Don't think they are the same.
I thought that too. Surely if the buyer sends a BT to Sam and he can see it in his account then it's all good. Especially if he immediately moves the funds to another account i.e. a savings account.
Yes it can’t be reversed. Moving the money to another account is irrelevant
No, not all banks use Faster Payments.
And to clarify (from info provided by Barclays Bank):
Faster payment credits are cleared funds on the day of crediting the account. They can be used straight away and can't be recalled. For further information please see the links below to the Bacs and Faster payment services websites.
The first sentence is rather ambiguous - does it mean right away or at the end of the day (though stating they can't be recalled suggests the former)?
And what about weekends?
I would ask the (potential ?) buyer to BT a refundable (or not) deposit or just a small payment before they come to see it.
This would make it more likely it is their account, has (some) funds and they are serious.
It also makes it much quicker to do the final BT.
I would be happy with a BT in exchange for the bike - maybe photo of DL too as you don't know them - name will match the deposit BT details ?
If you have the deposit details - you can even set up a transfer back and it will check them for you that the bank & acct name is correct so that could be some additional reassurance ?
Sorry, I was referring to an online balance transfer which was sent via Faster Payments - instant and can’t be recalled.
I'm pretty certain that if it's a BT payment, as soon as you see the credit in your account, it's yours and can't be reversed.
However, a decent buyer would happily wait a few minutes for the seller to phone his bank and double check on receipt.
Whilst not relevant to this situation, if a transfer is reversible, transferring the balance to another account will not help; the bank will just reverse the transaction anyway, leaving your account overdrawn. This could therefore be potentially quite a costly thing to do.
As far as I uinderstood it, BACS is reversible, faster payments and bank drafts are not.
Pretty much how I've done it both buying and selling cars .I would not entertain making a payment before seeing the car/bike
After viewing I send a small payment through before collecting which ensures (IME) the faster payment going through easily
I turn up and happily transfer the funds in front of the seller and show the money leaving my account, its often only a few minutes before it arrives in theirs
I do all the other transfers online at the same time ie ownership and tax , both a doddle on the computer
I've done this numerous times both selling and buying but if the person rings any alarm bells you don't have to deal with them
When selling a car I've also taken a pic of the driving licence just in case anything happens down the road (My son is currently dealing with a S172 on a car he sold back in March)
Dont entertain Bank drafts , they are too easy to fake
Be very, very careful excepting cash. There’s an awful lot of fake money out there !!!
I've received and paid by bank transfer on the day and understood that couldn't be reversed. I took £7k cash once on a weekend and asked a mate with a pub of we could use his UV checker (went with the buyer), I also told the buyer I would need to see photo ID, take a picture of him and his car, both of which he was on with. It was a faff so I'd prefer BT.
Does the buyer really mean BACS? Or just their internet banking.
Should be okay with the later once your son can see the cash in his account.
BACs is what's used for Direct Debits etc so can be reversed, I wouldn't trust it at all.
If you want cash, strongly consider meeting in your bank, so you can deposit the money immediately, know it's legit, and avoid getting a a visit from the boys later to relieve you of the cash!
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Some really good points above, thanks, and the risk in respect of cash payments is duly noted.
I suspect that the buyer's reference to BACS was in error, and what he meant was a transfer using his online banking app (so therefore reasonably safe, it would seem, but also verifiable with a phone call to the banks).
Thanks again, everyone.
Not sure about that. I'm an honest buyer and the seller wanted me to transfer the money before I collected because it could take hours to transfer. What if the seller is not honest? He has the bike and your money! I said I'd travel down and transfer the money then wait for hours outside if I needed to. It took about a minute.
Hi Tony.
If its online banking with Faster Payment which is supported by the majority of UK banks / building societies then I'm sure most of us here have transferred >£10,000 buying selling watches without issue. It can't be reversed, though if an honest error is made the bank can ask the receiver for the money back (account number transposed for example).
There is always that gut wrenching feeling when the sender sends you £15,000 and the banks block it for security checks and it can take a few hours to clear. Best get the buyer to ring his bank after sending payment if it is stuck. I wouldn't hand over the bike until money received.
Hope all goes well.
Martyn
I've discovered Wise (https://wise.com) that is mainly for Xrate payments but could be used between sterling to sterling. I get large amounts transferred in seconds between UK-EU banks that normally takes at least 24hrs. That could be an alternative.
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
I'd be very surprised if this was true.
Thanks very much to everyone who shared their thoughts on this. The guy who was meant to be coming to see/buy the bike cried off in the end due to the weather, but my takeaway is that online banking through a Faster Payments member bank is the best option (and can be easily verified with a quick call to the bank). Conversely, cash is risky unless it can be paid into the bank there and then.
I wouldn’t say cash is risky. If someone is buying a bike and paying cash for it, he’s unlikely to come back to try to steal the cash back.
Tony I recently sold my bike £8k guy electronically transferred after seeing the bike and was happy to wait three days to collect. I sweetened the deal by bunging a £15 worth of fuel in the tank. He was happy I had his cash and the bike, so win win. I only waited three days as I like you was unsure of the current banking protocols.
Steve
If you/he are really concerned, go to a branch & use a banker’s draft.
I’ve used it in the past for buying an AM.
Last time I sold a car for cash, once the buyer was happy he wanted it I drove him to the bank, he paid the cash over the counter to my account and I gave him the keys.
These days I’d accept a faster payment but would call the bank to check it can’t be reversed.
I know that used to be a scam back in the day - get the bike plus your cash back - especially if deal done in the evening so banks closed.
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