Changes to bank procedures may affect you

On 1 December 2016 all New Zealand registered banks will be making changes to the way they process domestic payments, as part of improvements being made across the New Zealand banking industry.

The University’s bank, the ANZ, has alerted us to the effect this could have on staff and the way you manage your payments. ANZ will implement the changes from Monday 14 November 2016.

Note: Please contact your own bank if you are unsure about how these changes across the New Zealand banking industry may affect you.

WHAT IS THE CHANGE?

Currently, banks normally send future-dated payments overnight (after 10pm) on business days.

From 1December all banks are required to send electronic payments (including bill payments, automatic payments, tax payments and funds transfers) during the day on business days, with some banks starting from 4am for future dated payments.

All credits to your account will be treated as cleared funds and available for immediate use (excluding cheques). All payments from your account will not be able to be stopped once sent, and will be sent to the payee as cleared funds. Any payment error will need to go through recovery process (will differ amongst the banks).

Direct debits during the day on business days, when they receive the request for them from the initiator (e.g. the company you’re paying).

Not all banks are following the same processing cycles, and you may need to contact your own bank to get an understanding of how the changes will affect you.

WHAT THIS MEANS FOR YOU

Depending on your bank, electronic payments will be sent earlier than before – so you’ll need to make sure there is enough money in your account when the bank make any payments. This could be anytime from 4am on the due date (depending on your bank), rather than after 10pm currently.

If there isn’t enough money in your account when the bank first tries to make an electronic payment, they’ll retry throughout the day.

If you still don’t have enough money in your account when they make their final attempt (for the ANZ, for example, this is at 4am the morning of the next business day), then like now your payment may fail and the bank may charge a failed payment fee.

If the bank is able to make your payment on its final attempt, there is a chance the payment will be dated the next business day (e.g. if your payment was due on 20 December, but it was made it on the final retry, it will be dated 21 December). If you have to pay a person or organisation by a certain date, this means the payment may be late.

 THE UNIVERSITY AND YOU

The University will aim to make its payroll run at approximately 2pm on the normal payment day (Wednesday).  ANZ (the University’s transaction bank) advise that this should be cleared to ANZ staff accounts in near real-time and other banks within 90 minutes.  If you have payments expected before that time, you may need to look at rearranging the time or dates to be certain there are adequate funds available.

 YOUR RESPONSIBILITY

The University is not responsible for any consequences of this change in banking practice on your personal banking arrangements, but brings this to your attention.  For many of you this may have no effect, but we advise all staff to check with their own banks and obtain an understanding what action may need to be taken.

For more information from ANZ click here.