Dispositions by customer meaning

Dispositions by customer describes the ways a customer moves money out of a current account under their account mandate. It is not a defined statutory term; it is a descriptive expression used in banking law and payment services practice. Typical dispositions include cash withdrawals, debit card payments, cheques, bank transfers and wires, standing orders, and payments collected under a direct debit mandate. In the UK these commonly occur via Faster Payments, CHAPS, Bacs, cheques and card networks; in Ireland via SEPA Credit Transfers, SEPA Direct Debits, cheques and card networks, with international payments typically via SWIFT. Key legal features are the customer’s authorisation (consent), the bank’s authentication and execution duties, and allocation of risk for unauthorised or incorrectly executed transactions. These are governed by the Payment Services Regulations 2017 (England & Wales, Scotland and Northern Ireland) and the European Union (Payment Services) Regulations 2018 (Ireland), supplemented by scheme rules (for example, the UK Direct Debit Guarantee) and Bills of Exchange legislation for cheques. Classification of a disposition affects revocation and cut-off times, refund rights, tracing, freezing and injunctions, and evidence of mandate, negligence or fraud. Usage is broadly consistent across the UK and Ireland, with differences largely in domestic payment schemes.