Banks’ limits on paying new and existing payees | SavvyWoman

Banks’ limits on paying new and existing payees via mobile and online banking

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There’s been a lot about fraud and what banks are doing to combat fraud, and improvements they’re making in repaying customers who’ve been victims of certain types of fraud.

But one of the things that struck us here at SavvyWoman (and I’m sure you as well!) is that banks could be doing simple things now to reduce the risks of fraud happening in the first place. For example, some banks limit the amount of money that you can pay someone if you set them up as a new payee and either pay them using the bank’s mobile app or pay them online. Others don’t.

We know that a lot of fraud occurs because fraudsters trick people into paying someone they think is genuine. For example, by emailing a house buyer and tricking them into paying the deposit to the fraudster and not the solicitor. By limiting the amount you can pay someone the first time you make a payment to them, banks could limit money lost to fraud.

Limits for paying new and existing payees

We asked the major banks and building societies what their rules are on whether there is a limit per day on the amount a customer can pay either a new or existing payee via their phone and also via online banking. Here’s what they told us (in alphabetical order):

Bank of Scotland

The Bank of Scotland’s limit for paying a someone new or an existing payee via mobile or online banking is £25,000 a day.

Barclays

Online: Barclay’s limit for paying someone new or an existing payee via online banking is £50,000 a day.

Mobile: You can pay someone new up to £1,500 a day via mobile banking. If it’s an existing payee, you can pay them up to £10,000 a day via mobile banking.

Clydesdale and Yorkshire Banks

Clydesdale and Yorkshire Banks’ limit for paying someone new or an existing payee via mobile or online banking is £30,000 a day.

If you want to pay more using the mobile app they will ask for your internet banking password.

Co-op Bank

Existing payee: Co-op Bank’s limit for paying an existing payee via mobile or online banking is £19,999 a day.

New payee: The limit for a new payee via mobile or online banking is £250 a day.

First Direct

First Direct’s limit for paying someone new or an existing payee via online baking is £49,999 a day. This can be done via Electronic Funds Transfer (same day before 3pm) for a fee of £17, or a bill payment which will arrive no later than the next working day at no cost.

If you want to pay by mobile app, the limit is £30,000 a day.

Halifax

Halifax’s limit for paying someone new or an existing payee via mobile or online banking is £25,000 a day.

HSBC

HSBC’s limit for paying a new or existing payee via mobile or online banking is £10,000 a day.

Intelligent Finance

Intelligence Finance’s limit for paying a new or existing payee via mobile or online banking is £25,000 a day.

Lloyds Bank

Lloyds Bank’s limit for paying a new or existing payee via mobile or online banking is £25,000 a day.

M&S Bank

M&S Bank’s limit for paying existing payees via mobile app and online banking is £10,000 a day.

You can only pay someone new via online banking. Here the limit is £10,000 a day.

Metro Bank

Metro Bank’s limit for paying a someone new via mobile banking app is £2,500 per day.

There’s a daily limit of £21,000 if you want to pay an existing payee via online banking. For international payments the limit is £5,000 per day.

Nationwide Building Society

Nationwide’s limit for paying a new or existing payee via mobile or online banking is £10,000 per transaction. Customers can make multiple transactions per day up to the limit of the money in their account.

NatWest, RBS and Ulster Banks

Mobile banking: NatWest, RBS and Ulster Banks’ limit for paying new payees via mobile banking app is up to £750 a day. Once you’ve paid them before, you can pay more than £750 a day, unless you change the payee reference, in which case the limit goes back down to £750.

Online: The limit for paying new or existing payees via online banking is £20,000 per day.

Santander (includes Cahoot and Cater Allen)

Santander’s limit for paying new or existing payees via mobile or online banking is £25,000 per day.

Starling Bank

Starling Bank is a mobile-only bank. The limit for paying a new or existing payee per day is £25,000 per transaction, with an international payment limit of up to £10,000 per transaction.

If you need to make a payment for a higher value you can still do it from the app, but you’ll need to get in touch with customer services first.

Tesco Bank

Tesco Bank’s limit for paying new or existing payees via mobile or online banking is £10,000 per day.

TSB

TSB’s limit for paying new or existing customers via mobile or online banking is £25,000 per day.

Virgin Money

Virgin Money customers cannot transact from their current accounts online.

They don’t have a mobile banking app for Savings accounts therefore customers cannot make payments from their phone.

For Savings account withdrawals via online banking, there is no limit per day on the amount a customer can pay either a new or existing payee, depending on the T&Cs for their specific account. However, there are the below points to note:

Withdrawals will be made by either Faster Payment or CHAPS (£30 fee per transaction). Withdrawals of up to £200,000 will be charge free unless a customer specifies to send it via CHAPS. Any payments above £200,000 will need to be sent via CHAPS and therefore the CHAPS fee is payable.

Withdrawals may hit an automated fraud rule trigger, which would then be screened by their transaction monitoring team who would contact the customer to confirm identify and the transaction as appropriate, before releasing.

Photo by Franco Atkins from Pexels.

Related articles: 

Bank fraud refund scheme for scam victims comes into force

Contactless cards – how to avoid contactless card fraud

Bank frauds and scams to avoid – how to reduce the risks of being a fraud victim

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