Seven Day Banking

Did you know that on the 26^th May New Zealand’s major banks changed the way they process payments from five days a week to seven days a week, 365 days of the year? It’s a significant change that hasn’t been widely publicised. So, what does it mean, and how does it affect you?

What’s happened?

Prior to the 26^th May 2023 our banks only processed payments Monday to Friday, excluding public holidays. This followed along the lines of ‘normal business days’ whereby banks and other businesses traditionally opened five days a week. For a while now, many companies and banks are now open for business seven days a week, so it makes sense payments can be processed everyday too.

What does this mean?

Automatic payments, bill payments, credit card, debit card and direct debit or direct credit transactions can now be made every day, including weekends and public holidays. For example, someone buys an item you’ve listed on TradeMe on Friday, you give them your bank account details and the money is in your account on Saturday, instead of having to wait until Monday or Tuesday, if Monday happens to be a public holiday.

Things to be aware of

• Banks have stopped allowing customers going into unarranged overdraft when direct debits are due.
• In the past, direct debits would still be processed if there weren’t sufficient funds in your account and your account would go into unarranged overdraft. Now, direct debits will only be processed if you have enough money in your account on the day the direct debit is due.
• Also, if you have an automatic payment or direct debit payment scheduled on the 20^th of each month for example, this payment will be taken no matter what calendar day the 20^th falls on, even if it’s a weekend or a public holiday.
• Most major banks have adopted seven-day banking. A full list of participating banks can be found at Payments NZ.

Plan ahead

• Make a list of all your outgoing automatic payments and direct debits and set up calendar reminders in your phone a day or two before they are due. Check your account balance and make sure there is enough money so you’re not caught out.
• If you need to, make any necessary changes to your automatic payment or direct debit payment dates so that they align with your salary payment cycle.
• Ensure there is enough money in your bank account on the day a direct debit is due, or talk to your bank to see if you can organise a pre-arranged overdraft limit.

As with any change, now is a good time to review your budget and finances to ensure you’re on the right track and to make any adjustments if you need to.

If you have a loan with Oxford Finance and would like to change the date of your direct debit to align with your pay cycle, get in touch with our friendly team, we’re here to help. Alternatively, if you are experiencing an unforeseen change in your financial situation, don’t leave it too late to contact us or call 0800 88 44 66.