Sitting alongside existing UK payment schemes like BACS and CHAPS, the Faster Payments 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
DCA
Direct Corporate Access (DCA) enables Commercial Bank customers to submit Faster Payments directly to the Faster Payments Service (FPS) central infrastructure.
- Available Monday to Friday on working days between 6am and 2pm.
- DCA payments will be processed within 30 minutes and sent to the beneficiary bank.
- Beneficiary banks which are members of FPS must apply funds to money transmission accounts within 2 hours. In many cases they will do this immediately.
- Payments can be made to FPS addressable sort codes belonging to the 13 member banks
Business Applications for DCA
- Contingency for late submission of BACS payments where the value date is critical e.g. salary payments
- Weekly payroll (allowing later input of data)
- Staff expenses – minimising the time that staff are out of pocket
- Customer service refunds where Faster Payments enables fast resolution.
- Bureaux for valued added services to their clients
- Financial Institutions who are not members of FPS but require a FPS payments capability for their online and telephone banking services
More information on Direct Corporate Access
For more information, please contact:
Phone: 01462 482 333
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