Faster Payments from May 27 - confirmation from APACS

MPH80

To fit with the rumours being left here - A&L sent me this secure message today (after I asked what was going on):

From the end of May we will be able to receive credits via this new system but it is not anticipated that we will begin sending payments until August at the earliest.

Biggles

Dagobert wrote: »

At TSB, a payment set up on Monday, can leave your account at the earliest on Tuesday. A BACS payment leaving the account on Tuesday will arrive on Thursday, NOT on Wednesday.

A payment can be scheduled for the next working day at the earliest. It enters the 3-day BACS cycle on the day it leaves the account. However, TSB still pay interest on the two days it takes to reach the recipient.

Payments from LTSB have invariably (ever since I've been using online banking, which is some years) arrived at the payee bank the day after leaving my account.

The payment never leaves your account on the same working day as you give the instruction, but that day becomes 'Day 1' of the BACS cycle. LTSB take the money from your account on the following day (Day 2) and the transfer from bank-to-bank takes place on Day 3 (this is also what's happened with Hazzanet's payment).

With BACS, the funds always move from bank to bank on Day 3. But your bank may choose to take the funds from your own account on Day 1 or Day 2; LTSB and several others use Day 2. This can make it seem as though it all happened over two days, whereas the BACS cycle can only be three days.

LTSB say http://www.lloydstsb.com/ways_to_bank_with_us/faster_payments.asp they will use FPS from 27 May for:-

• Single immediate payments. These are one-off payments that you want to send immediately. These payments can be made all day, every day.
• Future-dated payments. One-off payments that are set up to be made at a later date. These will continue to be made on ‘working days’ only.
• Standing orders. These are regular payments made on a specific date for the same amount. These payments will continue to be made on ‘working days’ only.

Mikeyorks

Biggles wrote: »

• Single immediate payments. These are one-off payments that you want to send immediately. These payments can be made all day, every day.
• Future-dated payments. One-off payments that are set up to be made at a later date. These will continue to be made on ‘working days’ only.
• Standing orders. These are regular payments made on a specific date for the same amount. These payments will continue to be made on ‘working days’ only.

More or less mirrors what has been on the Faster Payments (unofficial) site since last Nov. But (bullet 1) ... nice to see no mention of a charge. I did expect to see one for the immediate payments - as they're a low value (max £10k .. but possibly lower initially) CHAPS equivalent and available 24/7. Bullet 2 is basically bill payments ... there's an option there of also running them 24/7 - bit disappointing to see (some?) Banks won't be taking it.

Biggles

Yes, I meant to add, 'No mention of a charge'!

Interesting to see SOs included there, that's good. I thought previously it had been suggested that they would still be made via the 'old' system.

Milarky

http://www.halifax.co.uk/OnlineBankingHelp/fasterpayments.asp

So are Halifax 'guaranteeing' that any payments they receive after Faster Payments arrive will be forwarded instantly....?

MarkyMarkD

I think so, apart from your use of the word "instantly". Faster payments isn't INSTANT payment, it's just quicker.

But so will most banks be offering the same from May 27.

Biggles

Milarky wrote: »

http://www.halifax.co.uk/OnlineBankingHelp/fasterpayments.asp

So are Halifax 'guaranteeing' that any payments they receive after Faster Payments arrive will be forwarded instantly....?

The wording seems to have changed now. No 'guarantees' ;-)

But sure enough, from 27 May Halifax will accept Faster Payments.

Mind you, they won't be sending them till September!!

Now, I was assuming that FPS was a system like BACS, where your bank initiates a payment and it duly arrives at the receiving bank, whoever that may be. Does Halifax's statement mean that, for FPS to function, both the sending and the receiving banbks have to be parties to it? Or is it just HBOS bull***?

10_66

Biggles wrote: »

Does Halifax's statement mean that, for FPS to function, both the sending and the receiving banbks have to be parties to it? Or is it just HBOS bull***?

When I asked a while ago whether or not Kaupthing was introducing Faster Payments (they're not), I was told that it'll only work if both sending and receiving organisations operate the Faster Payments system.

Milarky

Biggles wrote: »

Mind you, they won't be sending them till September!!

Yes, that's disgraceful - a further 3 month's wait - why the delay? Why don't all 13 banks just get together now and agree that they'll all launch it 'officially' - for all payments between themselves - on 1st September instead of 27th May? (damnit!)

(Where's the OFT when you need it?

Where's the FSA?

Where's Mr Bean from the Treasury?)

regularsaver1

If u have a regular saver u need to be careful that ur regular does not receive 2 payments in one month under the faster payments system