It's faster!

The Faster Payments Service allows customers to make faster electronic payments, typically via the phone or internet, enabling them to be processed in hours rather than days.

Once it is rolled out it will allow customers to make near real-time payments over the phone or through online banking all day, every day.  From June it will also start be used to make quicker standing order payments on bank working days.

Some banks already make a competitive decision to cover any loss of interest that their customers incur as a result of the current three-day clearing cycle; a payment sent through the Faster Payments Service does not need such cover.

Do I, as a customer, need to do anything to take advantage of the Faster Payments Service?

You don’t need to do anything different from what you are doing today, as payments will continue to be made using existing mechanisms, and will simply be migrated to the Faster Payments Service, where appropriate, over time. During the rollout of the new service, or if the Faster Payments Service is not available to you, payments can continue to be made through existing mechanisms for making electronic payments, such as Bacs and CHAPS.

You don’t need to contact your bank because participating banks will make further information available in due course.

If you are paying a bill, you will always need to check that the service provider accepts Faster Payments and, just as you do now, check their recommended timings to ensure your bill is paid on time. This information should be found on the back of your bill or statement.

What are the timescales for the introduction of the Faster Payments Service that personal and business customers need to know?

The new service is being launched on 27th May 2008 and participating banks will then start to rollout the Faster Payments Service for internet and phone payments. Banks involved in offering Faster Payments will make further information available to customers.

In June most banks are expected to start using the Faster Payments Service to process standing orders.

Initially, business customers who currently submit large volumes of payments by Bacs will not be able to submit files of payments directly into the Faster Payments Service.  However, they may be able to take advantage of the Faster Payments Service by submitting files of payments directly to their financial institution, who will then submit the payments on their behalf. The availability of this service will be dependent on the particular financial institution. 

Throughout the rollout of the service and beyond, if the Faster Payments Service is not available to you, payments can continue to be made through existing mechanisms for making electronic payments, such as CHAPS and Bacs.