Speedier bank transfers by next May

by Gill Montia

Story link: Speedier bank transfers by next May

The Association of Payment Clearing Services (Apacs), the body that represents businesses involved in payment services, has reported that a new system allowing the same-day transfer of money between bank accounts will now be introduced in May 2008.

The system, which should have been operational by November of this year, has been delayed by six months.

According to Apacs the additional time will allow for rigorous testing of the new technology and ensure that customers benefit from safe, secure, faster payments.

Once introduced, online transfers between banks, which currently take three days, will be completed in a day. The faster service will also apply to Internet and telephone banking transactions.

The Office of Fair Trading has expressed disappointment at the delay. Work on the project began in November 2005, and the banking sector had made a commitment to have the new system in place by the end of 2007.