[PSA] Aotearoa New Zealand’s Payments Moving to 365 Days a Year (Including Weekends and Public Holidays) Active from 27 May 20

Huntakillaz on 23/05/2023 - 01:48
Last edited 23/05/2023 - 09:40

https://www.paymentsnz.co.nz/resources/articles/q-and-a-paym…

TLDR;

Bulk Electronic Clearing System (BECS), which covers direct debits, automatic payments, bill payments and direct credits And EFTPOS transactions
are required to implement 365-day payment capability by 26 May 2023

Current banks moving to the system (Others may do so at their own discretion)
- ANZ
- ASB
- Bank of China
- BNZ
- Citi
- HSBC
- ICBC
- Kiwibank
- TSB
- Westpac.

This change applies only to the days of the week you can make or receive payments. The exact time of day a payment transaction is received by you, or deducted from an account, can vary between banks.

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The following is info gathered from the bank websites, check your specific Bank for more details but the general commonality:

Payment processing times (Approx varies Bank to Bank) 7-day about every ~30mins between
- 9:00/10:00am and ~11:30pm

Payments moving to 7-day processing:
- One-off and bill payments.
- Tax payments.
- Automatic payments.
- Direct debits.
- Direct credit and payrolls.

Payments remaining as business days only:
- Same-day cleared payments (high value transactions, such as house settlements).
- Foreign exchange payments to and from other countries.
- Voluntary payments to your KiwiSaver Scheme or ManagedFunds.
- Scheduled repayments for term loans

Account and facility interest and fees
- Interest and facility fees will be calculated differently for some transactional accounts, savings accounts, and overdrafts
- Interest and monthly fees will be calculated using your account balance at the end of each day, 7 days a week. This applies when Banks calculate both credit interest (where Banks pay you) and debit interest (where you pay Banks).

Interest calculations
- Debit and credit interest calculation for non-business days differently to include any payments you make or receive on non-business days.

General Discussion

Comments

  • CheapAzChips on 23/05/2023 - 07:07
    +2

    About time! But still…. 7 days a week but still not 24 hours? Do they still have real people looking at every transaction? I understand if they are automatically flagging transactions that need human intervention for money laundering, fraud or scam prevention, but surely everything else can just be fully automated 24 hours a day?

    Once upon a time we had a world class banking system. The last 20 years we've really fallen behind. Bring on open banking!

    • Nil Einne on 28/05/2023 - 05:26
      +1

      I wonder if it's more about giving banks time where they can close the books on your account for interest calculations and everything else they probably still do 'overnight' on potentially fairly old software and systems.

      But on your other point, I can imagine there are reasons why banks considered it ill-advised to give away that a transaction was flagged but approved. (You can't really avoid giving away that a transaction was flagged but not approved.) And you need to wait until someone is working for the manual approval but this never happens when it's not flagged, then you're giving it away.

    • mpc on 28/05/2023 - 09:57
      +1

      Definitely need open banking to actually bring about some competition and reduce bank profits. The banks have deliberately moved glacially slow on it as they know it'll cut into their profits.

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