I've heard that the banking system is changing from Sort Codes to Branch Indicator Codes (BIC). It's supposed to be transparent but we've heard of problems with CHAPS payments.
Anyone know anything about the change and whether it will impact on finance systems which use the Sort Code for BACS payments.
Nick Mellors
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..but I think it's a great idea
If you are operating internationally then I am afraid UK sort codes tend to get in the way and confuse the issue.
If we are moving to one number that directs funds to my account from anywhere in the world (rather than from just down the road) I am happy. But if we are simply replacing one domestic system with another then I am not.
It doesn't surprise me in the least though if any changes are currently resulting in errors - but that is surely more to do with the capability (or otherwise) of UK banks to keep up with these changes.
Blame the bank rather than the concept I say.
I thought that is what sort code is!
The sort code is in fact branch locater/indicater!. For example if the sort code is 40-33-33 then 40 represents the bank i.e. HSBC, the first 33 represents the district/town/city and last 33 represents the branch.
In my example, the bank is HSBC,
Town/City is Milton Keynes
Branch is: Central Milton Keynes Branch.
How can they simplify any further? You can give series of numbers but it can't be simpler than what we have at the moment.
How we heard about it
We heard about it from Lloyds & Nat West when we queried what had happened to some rather large payments. It sounds like it's supposed to be internal to the banking system but we couldn't get a particularly clear message.
None of the customer service lines had heard about the change and it tooks many calls to get to someone in the technical project team who knew what was happening.
I've yet to see anything in writing - hence the posting
Nick
PS Jay - you're right in describing a sort code, who said the change was simplifying things :-)
BICs are mentioned in the 2000 directory
I have in front of me the "UK clearings directory 2000 (formerly sorting code numbers directory)
It says in a line at the top of the front cover
"Also includes CHAPS Euro BICs"
The introduction to the section from p375 says
"CHAPS Euro is a service developed by CHAPS Clearing Company Limited, in partnership with the Bank of England, to handle the real-time settlement and transmission of euro-denominated payments."
...
"Direct membership of CHAPS Euro enables global intra-day settlement of euro by 20 settlement banks. There are around 9,000 S.W.I.F.T. BICs (Bank Identifier Codes) registered covering in the region of 120 countries and the network continues to grow."
HSBC Bank plc Milton Keynes with Bank sort code 40-33-33 appears to be MIDL GB 21 11L
I think the move away from the simple and understandable system for domestic transactions is sad. The hymn that is now going through my head includes the words "All I once held dear".
And there's more...
APACS, the Assoction for Payment Clearing Services, says that Sort Codes will be with us forever. BICs will supplant Sort Codes - for example, with electronic payments, many will have a BIC.
From April 2001, IBANs have been introduced into the UK. These are International Bank Account Numbers. They are a combination of the above two systems. But it should all work with systems past, present and future.
* If you have experienced problems with any of the above, please email the editor in confidence.