Faster Payments from May 27 - confirmation from APACS

DeepSporran · 27 February 2008 at 6:57PM

APACS have issued a press release confirming that they are on track for introducing Faster Payments from May 27.

http://www.apacs.org.uk/08_02_27.html

Banking industry update on new Faster Payments Service

APACS, the UK payments association, has today (27 February 2008) confirmed that the banking industry is on track to deliver the infrastructure that will enable a new faster payments service to be launched starting on 27th May this year. The development of this new system is a massive and complex project involving significant investment both within banks and the central infrastructure.

The new service will benefit customers by speeding up one-off payments made over the internet or by phone, enabling them to be made all day every day: they currently take three days. It will also enable regular standing order payments to move more quickly on bank working days: reducing the timescale from three days to provide a same day service. The new system will run alongside existing UK electronic payment schemes such as Bacs and CHAPS.

Milarky · 27 February 2008 at 8:01PM

Arr but the suspicion of it got out a few days ago...

http://forums.moneysavingexpert.com/showthread.html?t=760619

[nice to see it confirmed however]

BlondBoy · 27 February 2008 at 8:19PM

Still wondering if the banks will charge for the service mind - 50p a go? £1?

It's an opportunity for them to provide a 'value added service', after all. Near instant transfer? £1. 3-day transfer - free, as now.

And there's no sign of any pricing information from APACS.... and the word 'free' is nowhere to be seen. Hmmm.....

MarkyMarkD · 27 February 2008 at 8:22PM

The 27 May date is the date the infrastructure will be in place for banks which are ready to use it, to use.

It doesn't mean that your bank will necessarily offer the service on that date.

Mikeyorks · 27 February 2008 at 8:37PM

MarkyMarkD wrote: »

It doesn't mean that your bank will necessarily offer the service on that date.

Difficult to envisage how that would work? Little point Bank A offering same day service (and possibly charging for it) if the receiving Bank isn't geared up to accept / account for it?

Mikeyorks · 27 February 2008 at 8:42PM

And strange the Faster Payments site isn't carrying any update? Hopefully too busy making sure it will work.

YorkshireBoy · 27 February 2008 at 9:02PM

Mikeyorks wrote: »

Difficult to envisage how that would work? Little point Bank A offering same day service (and possibly charging for it) if the receiving Bank isn't geared up to accept / account for it?

Which is why the new system will "run alongside" BACS and CHAPS, for those not fully adopting the new system from May 27th.

They accept not all banks will be onboard from the 27th. Consider the words of APACS...

However, the roll-out of a new faster payments system will begin on May 27th 2008, enabling partipating banks to speed up telephone and online payments for their customers. Once rolled out, the new system will allow these payments to be processed on the same day.

http://www.apacs.org.uk/payment_options/automated_payments_3.html

Other APACS publications openly state that smaller banks and some building societies will come onstream later.

MarkyMarkD · 27 February 2008 at 9:45PM

From what I've read, the process will involve checking that the recipient bank can receive the payment before you are told that it will go through Faster Payments.

But that does mean that in practice, you won't be able to rely on making a payment at the last minute until everyone is on board, and that must negate a lot of the benefit to be honest.

ShelfStacker_3 · 27 February 2008 at 11:21PM

MarkyMarkD wrote: »

From what I've read, the process will involve checking that the recipient bank can receive the payment before you are told that it will go through Faster Payments.

But that does mean that in practice, you won't be able to rely on making a payment at the last minute until everyone is on board, and that must negate a lot of the benefit to be honest.

To be fair, the banks that are on board for FPS represent about 95% of everyone with a current account. If your recipient's with one of the big four high street banks, of which there is as I say a huge chance, you should be A-OK.

YorkshireBoy · 28 February 2008 at 12:07AM

ShelfStacker wrote: »

To be fair, the banks that are on board for FPS represent about 95% of everyone with a current account. If your recipient's with one of the big four high street banks, of which there is as I say a huge chance, you should be A-OK.

A great many building societies (and other institutions) use 'collection accounts' with the banks though; for example YBS use NatWest, which currently means transfers out of YBS take 5 days (rather than the standard 3 days for BACS transfers).

It's all well and good the main banks all being signed up from 27th May, but will there still be delays in your money reaching the 'final' recipient, until everyone is signed up?

System · 28 February 2008 at 9:21AM

The collection accounts are primarily used for incoming payments, with YBS only using one for International credits. For BACS, the have a sort code range.
YBS takes 5 days because of their internal setup, they could easily do it on a 3day cycle, but have taken the decision not to update their systems :rolleyes:

YorkshireBoy wrote: »

A great many building societies (and other institutions) use 'collection accounts' with the banks though; for example YBS use NatWest, which currently means transfers out of YBS take 5 days (rather than the standard 3 days for BACS transfers).

It's all well and good the main banks all being signed up from 27th May, but will there still be delays in your money reaching the 'final' recipient, until everyone is signed up?

Faster Payments from May 27 - confirmation from APACS

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