Faster Payments is the first new payments service to be introduced in the UK for over 20 years. Sitting alongside existing UK payment schemes like BACS and CHAPS, the Faster Payment Service enables electronic payments, typically made via the internet or phone, to be processed almost instantaneously rather than the current 3-5 days.
To date 13 banks and building societies are committed to the new service and in the future other financial institutions will be able to join, either as members, or to access the system through agency arrangements with a member - just as they do with other payment systems.
Key Implications
- Faster Payments will revolutionise the UK's automated payments infrastructure
- Institutions will have to originate new, compatible payment processes
- Faster Payments will replace some of the processes currently handled by BACS, including standing orders and internet/telephone banking payments
- 10K limit recognises and accommodates the trend towards high volume, low value, real-time payments. As much as 50% of CHAPS payments are already below this level
- Large-scale billers like telecoms and utility companies will need to review their treasury and accounts receivable processes
Achieve Faster Payments with Barron McCann solutions
To ensure no misapplied payments or rejections occur, Barron McCann's Validate and Validate ID solutions will confirm the validity of beneficiaries accounts and identify whether the account can accept a Faster Payment. This improves overall payment efficiencies - Straight Through Processing (STP) and enhances Faster Payment implementation.
Existing BACSTEL-IP users can access Faster Payments Service by adding our FPS Direct Corporate Access profile, enabling bulk submission of payment files directly into the FPS infrastructure from one single payment gateway.
More information on Direct Corporate Access
For more information, please contact:
Phone: 01462 482 333
News - BASS Approval for Faster Payments
White Paper - Understanding the drivers for efficient and fully-inclusive Payment Systems
