Faster Payments - Reversible?

UnsureMr

Hi,
as per the title, if I receive a faster payment, can it be recalled or altered at any time by a third party?

Basically I am to receive a lot of money by an individual and have asked for CHAPS, but FPI is instant and would be much more convenient.

Please advise.

chexum

UnsureMr wrote: »

Basically I am to receive a lot of money by an individual and have asked for CHAPS, but FPI is instant and would be much more convenient.

I don't believe any cleared payment can be recalled, let's wait for second opinions. You should be aware though that FP has limits (typically £10k even for the banks that implement it fully, which is a lot, but you may be expecting more) and it's not guaranteed to be used - banks can randomly revert back to BACS on any occasions, sometimes without the sender realising it.

UnsureMr

Thanks for the input, yes it is more than £10k.

heloid

Faster payments are not reversible. Once you see the money in your account it can not be taken out as it is instantly cleared (just as a BACS transfer can't be reversed once you see it in your account).
Most banks provide a message when confirming saying whether it will be deposited immediately (FP) or in 3 days (BACS). You should see it within 2 hrs, usually instant depending on what security checks they do.

Blenheim_2

heloid wrote: »

.....(just as a BACS transfer can't be reversed once you see it in your account).

Not true. Although relatively rare, funds sent by BACS can be recalled on the same day that they arrive. Many businesses will not release goods or stock to customers on the same day that funds arrive via BACS because of this, stating that collection / delivery can only take place on the day after receipt of funds.

My impression is that Faster Payments cannot be recalled at all, but I could be wrong.

Lokolo

UnsureMr wrote: »

Thanks for the input, yes it is more than £10k.

Then it can't go by faster payments as the limit is £10k.

Chorlie

Faster Payments can't be changed or recalled (the remitter would need to deal direct with the creditor if the Faster Payment was needed to be recalled).

BACS Payments can be recalled on day 1 before 3pm (most branches need to know before mid day) via a Manual BACS Recall, after this time not easy and rarely happens.

CHAPS are more like Faster Payments, they can be recalled but rarely happens and would normally need the account holder permission, unless it was the value date and credited in error.

gt94sss2

Lokolo wrote: »

Then it can't go by faster payments as the limit is £10k.

The Faster Payments limit increased recently to £100k though I don't know any bank which has implemented this change yet for instant payments.

Depending on the bank, payments of more than £10k are also possible via a one off standing order (weekdays only)

Regards
Sunil

Mikeyorks

gt94sss2 wrote: »

Depending on the bank, payments of more than £10k are also possible via a one off standing order (weekdays only)

In theory future dated payments can be either £10k or (up to) £100k .... but I know of no Bank that publishes their limits on these.

The lifting of the system limit to £100k (in response to pressure from corporates!) is a bit of a surprise - as I though CHAPS were intent on preserving that niche for their paid service.

http://www.chapsco.co.uk/chaps_company/press_releases/-/page/1022/