Types of Faster Payment transactions

The Faster Payment System is different to Bacs and CHAPS, with the former generally used to set-up a batch of payments in advance, and the latter for the payment of particularly large amounts.

In the case of Faster Payments, the system facilitates four categories of payments which we’ve outlined in this section. For information about the transaction limits of individual banks and building societies visit Faster Payment transaction limits.

  • Customers can initiate these one-off payments online, using a mobile device, over the phone, or in a branch, 24 hours a day, seven days a week (subject to their bank’s service offering)
  • Up to £1m can be sent per transaction (although individual banks may impose lower limits)
  • The money is usually available in the receiving customer account almost immediately, although it can sometimes take up to two hours
  • The Faster Payment System central infrastructure provides a response to the sending bank within 15 seconds, confirming that the receiving bank has accepted or rejected the payment. When rejected, the receiving bank will also provide a reason for the rejection
  • Sometimes the receiving bank is unable to take the payment immediately, in which case the customer should be given a response indicating when they can expect the funds to reach the account. Reasons for this include an operational issue at the receiving bank, or if the receiving account does not permit immediate posting of the payment.

Forward-dated payments are one-off payments sent and received on a pre-arranged date, set-up by the customer in advance. Typically, these are used to pay for the likes of bills and rent, for example.

  • Customers can initiate forward dated payments online, using a mobile device, over the phone, or in a branch
  • Payments can be sent 24 hours a day, seven days a week (subject to a customer’s bank’s service offering)
  • Up to £1m can be sent per transaction (although individual banks may impose lower limits).
  • A regular payment that pays a fixed amount to the same recipient on regular dates (i.e. first of the month)
  • Customers can initiate standing order payments online, using a mobile device, over the phone or in a branch
  • Payments can be sent Monday to Friday, excluding bank holidays. If the pre-arranged date falls on a weekend or bank holiday, the payment is made on the next working day
  • Up to £1m can be sent per transaction (although individual banks may impose lower limits)
  • It is not possible to guarantee the exact time the payment will reach the recipient’s account, although at least 90% of standing order payments are sent by 6 am.
  • A service for business customers that enables bulk files of payment messages to be sent directly to the Faster Payment System
  • Direct corporate access is available 24 hours a day. Payments are sent via the Faster Payment System, for same-day transmission to receiving customers
  • Payment files are input using a secure-IP solution (similar to Bacstel-IP), using the same standard file format as Bacs transactions
  • A number of software solution providers are accredited to provide direct corporate access services
  • Not all Faster Payment participants offer direct corporate access, but do provide alternatives for their business customers
  • Up to £1m can be sent per transaction.
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