Faster Payments Service
The Faster Payments Service is a Banking industry initiative to speed up certain payments and was launched on 27 May 2008.
The Faster Payments Service allows participating banks to provide same day processing of electronic payments such as funds transfers, bill payments and Standing Orders.
Bank customers are now able to
- Make payments via the branch, online or telephone banking on a near real-time* basis
- Send same day payments without using CHAPS (same day value payments)
- Know in real time whether a Faster Payment was sent successfully
Both sending and receiving banks need to be members of the Faster Payments Service and the amount of the payment needs to be within the set limits.
The new Faster Payments Service will run alongside CHAPS which will continue unchanged and is needed for high value payments.
Same Day Payments
For inter bank transfers and Standing Orders there was a three working day cycle between a payment being made and the funds being received at the recipient's bank.
This new service reduces this to the same day for eligible payments to a bank which is participating in the scheme.
Most major banks are in the scheme. Where a bank is not in the scheme or a payment value is outside the scheme rules the payment will either have to be sent via CHAPS, Bank Giro Credit or the three working day cycle via BACS. A three working day cycle payment is initiated in the same way as a Faster Payment (via internet or telephony only).
It is important to note that most Faster Payments will reach the receiving bank in near real-time*, but in some cases e.g. credit card payments, the funds may take more time to reach the individual account.
Using the Faster Payments Service
There is no change in the way you initiate Standing Orders, online and telephone banking payments using the scheme. To create a payment in the branch please speak to a member of staff who will be pleased to help. You do not need to do anything to receive Faster Payments into your account.
Check this page regularly to keep up to date with Faster Payments.
* Near real-time – The payment will be received by the payee, almost immediately after leaving your account, but sometimes up to two hours later, providing the payment amount is within the Faster Payments set limits.