While bank statements are not complicated, they contain information that you may find confusing at times. For instance, when you see “advice confirms” stated somewhere on the paper, you probably wonder what it means.
Read on to find out what to do when you read this on your bank statement.
The “advice confirms” portion in the bank statement means you are expected to have received a separate form of communication or “advice” confirming the sender of a specific payment. This is common with CHAPS payments and overseas transactions.
CHAPS or Clearing House Automated Payment System is a United Kingdom-based bank-to-bank payment system that facilitates money transfers. It is commonly used for large, time-critical transfers such as house deposits and foreign exchange transactions.
Most high-street banks, or those major institutions with several branch locations in the United Kingdom, are affiliated with CHAPS because transactions are irrevocable and settlement risk-free.
It also guarantees same-day payment, as long as payment instructions are met and received before the cut-off in the working day, usually before five in the afternoon.
If a bank outside the United Kingdom sends you payment via CHAPS, you will receive a different “advice” or an official notice confirming the transaction. This is what the “advice confirms” in your bank statement means.
The term advice can be exceptionally confounding when used in anything bank-related. While banks do offer specific advice on how to handle your money, most of this “advice” is just confirmation of what has transpired.
Bank advice is an official note of a transaction in its simplest definition.
If you withdrew money from a cashpoint or an automated teller machine, the advice slip you will collect is just a receipt of your withdrawal.
There are several kinds of advice. A debit or credit advice is probably the most common.
Debit advice is a note or memorandum from your banker informing you of the deductions made in your account. This includes the complete debit transaction details on date, amount, and charges.
For instance, when you send a payment order to the financial institution, it will process the form and will send you, in return, debit advice concerning the previously sent payment order.
On the other hand, credit advice refers to a memorandum sent by your banker about an increase in your deposit account balance.
It is a message telling you about a specific amount of money that has been added to your bank account.
An example is when you file for an annual tax return and inform the Internal Revenue Service to send your refund electronically to your bank.
Once the IRS approves the refund, the money will be transferred to the bank, which credits your account. Advice will be sent to you about this transaction.
Nowadays, more and more banks and consumers embrace the convenience of online transactions.
Advances in technology used by banks mean advice can now occur in real-time.
When you advise your bank to pay for a monthly bill, such as rent or utility, the corresponding advice happens instantaneously or very close. The entire process, from initiating to settling, occurs in seconds.
Real-time transaction processing in financial institutions has a lot of benefits. Aside from fraud monitoring, it is excellent protection against cyber threats.
When financial services organizations apply real-time processing in a large part of their business, managing risks will be easier and more efficient.
Receiving bank advice at almost the same time a transaction occurs alerts the customers of possible hacking of sensitive data.
Real-time data also improve customer experience.
The faster and more intelligent transactions, from using credit cards to managing investment portfolios, welcome upgrades in clients’ interaction with banks.
This creates a data culture that offers customers the best support and services.
No. Advice from banks is not instructions telling you what to do. It is information advising you about a transaction made in your account.
Terms like “advice confirms” help modern-day bankers run their business efficiently. They ensure that every client’s account reflects accurate balances.
This accuracy helps them retain clients and improve their standing in the marketplace.
For every transaction made in your account, you can expect to receive advice that may arrive via mail, email, or your online bank account.
You generally receive this through your monthly or quarter bank statement if you have a checking or savings account.
These statements are a snapshot of your financial activity.
In recent years, banks have opted for paperless transactions. Account-holders are offered to receive their bank statements electronically through their online bank account.
Some financial institutions opt to send them via email.
With e-statements, you are given the ability to access, download and print copies as long as you have Internet access.
Some consumers still prefer the old-school transaction of receiving their bank statements via mail. It is just a matter of preference.
Whether you receive a printed or electronic bank statement, the contents are the same.
That “advice confirms” indicated in your physical copy will still be present in your electronic copy.
You do not have to do anything when you receive a bank statement with this specified. This is just a confirmation note on who the payment came from.