The types of payments that can be processed through the Faster Payments Service can be split into three types: -

• Single immediate payments
• Forward-dated payments
• Standing orders

Single immediate payments are typically those that are made when the customer sends the instruction to their bank via phone or through their internet banking service, and requests the transaction to be made straight away. These types of payment can be made all day, every day.

Forward-dated payments are individual, one-off payments set up by a customer to be made at a future date. For example, some people will arrange to pay all their bills at the beginning of the month, setting the payments up in advance, but having the money debited on a specified date in the future. Unlike standing orders, it may be possible to make this type of payment on ‘non-working days’, depending on the service offered by your bank.

Standing orders are regular payments made on a specific date for the same amount, to the same person or beneficiary. These payments will continue to be made on ‘working days’ only.

This new service will mean that over 95% of phone or internet payments sent using the Faster Payments Service will be available for withdrawal from the beneficiary or recipient account on the same day as they are sent.