Faster Payments Service begins roll out

by Gill Montia

Story link: Faster Payments Service begins roll out

The much delayed Faster Payments Service, which promises to speed up cash transfers has become operative from today.

Once fully rolled out, payment made by Internet or telephone should arrive at their destinations within hours while regular standing order payments made on bank working days will be dealt with in 24 hours.

The system has been designed by APACS, the body that represents payment services providers.

It is not yet live across the entire UK banking sector and even when this has been achieved, limits on the value of payments have been set: £10,000 pounds for Internet and telephone payments and £100,000 for standing orders.

According to a survey by the BBC, not all banks that have backed the Faster Payments Service will be participating immediately.

Abbey, HSBC, Lloyds TSB, Citi and others are taking a phased approach, while the Co-operative bank plans to launch the service in July.

Meanwhile, HBOS and Alliance and Leicester customer can currently receive but not send faster payments.

In the case of Barclays, account holders can both send and receive but upper limits for money transferred out of an account will not be available until July.

According to consumer group Which?, UK banks have been earning £30 million a year from the traditional extended payment times.