Banks to speed up cash transfers

http://news.bbc.co.uk:80/1/hi/business/7267406.stm

Cash transfers over the phone or by the internet will soon take only one day instead of three, according to the banking industry body Apacs.

The quicker system should have started last November but was delayed to make sure it worked properly.
It will now start on 27 May 2008 for the whole of the UK banking system.
Apacs said the "massive and complex" project would also speed up standing order payments, from three days to one day, as well.
The new, faster, payments service has cost the industry hundreds of millions of pounds to develop and implement, said Sandra Quinn of Apacs.
"It will be a 24-hour a day, seven day a week, service and transfers will happen immediately," she said.
More transactions
Initially, the new system will be aimed at personal customers, then later at business customers too.
It has also been designed to cope with a big future increase in the volume of daily transactions.
Currently, internet and phone payments make up 4% of all payments in the banking system, with standing orders making up another 9%.
The plan for the new system has been nearly three years in gestation, following an agreement between Apacs and the Office of Fair Trading (OFT) in 2005 that the existing procedures should be improved.
The boom in internet use over the past few years has led to online banking becoming more popular than telephone banking.
In 2006 there were 17 million adults banking in the UK online, up from 6.2 million in 2001.
That was one million more than the 16 million adults who were doing some of their banking by phone.

[Nattie]

Re: Banks to speed up cash transfers

I can confirm that the first faster payment within the RBS Group took place over the last few months successfully. The Auto Swep facility that I have mentioned earlier within RBS Group is part of that process of Faster Payments. The faster payments system is still in its unknown form but nearer the time I am sure I will be able to speak more on this topic. We were ready for last year BTW.

[argentarius]

Re: Banks to speed up cash transfers

The article is misleading. The infrastructure will be in place by the date in May, but not all banks will offer the service on that date.

For people making payments, until all banks are participating, it will be pretty useless as they won't know at the time they need to decide whether to pay by BACS or Faster Payments whether both methods are available. If they leave it till the last day for payment, ask to pay by Faster Payments, and then find the recipient's bank isn't participating, they are going to be stuffed.

[Nattie]

Re: Banks to speed up cash transfers

to continue on with what argentarius has said here is the actual participating banks:

The thirteen founding members are: Abbey, Alliance & Leicester, Barclays, Citibank, Co-operative Bank, HBOS, HSBC, Lloyds TSB, National Australia Group, Nationwide Building Society, Northern Bank (Danske Bank), Northern Rock, Royal Bank of Scotland Group. They account for over 97% of all payments made in the UK. Immediate Payments Ltd. (IPL), a VocaLink company is to provide the infrastructure for the faster payments service.

[argentarius]

Re: Banks to speed up cash transfers

From what I understand (having read up more on the subject) all banks will receive on 27 May, but not all banks' customers will be able to send funds via Faster Payments. This is better than the confusing system I thought was going to happen, as at least every individual or company will know whether they are able to use the service.

Have any of the banks actually stated publicly that their customers will be able to send using the service on 27 May?

I think the other thing most people have missed about Faster Payments is that it is only available for payments up to £10,000. Most people are, presumably, bothered about the delay for larger transfers - say between savings accounts.

I am not sure what there is to stop a customer making multiple £10,000 payments, but if there is no such restriction the limit is pretty pointless.

[Nattie]

Re: Banks to speed up cash transfers

There is something on LloydsTSB corporate site I believe about payments. The payment limit of £10,000 will be PER DAY from what I have read. I believe it may be higher for inter account transfers though. To be honest it will still complicate things but not as bad as before. Direct Debits are not affected by the Faster Payments service from my initial reading and training on Faster Payments.