Faster payments: how do they work?

Faster payments: how do they work?

Category: Banking

Updated: 28/05/2015
First Published: 16/06/2011

Faster payments do what they say on the tin: they're a way to make payments faster. But how fast are they? And how do you go about making one from your bank account?

Using faster payments can mean the difference between paying or missing that red bill, or getting your cash-strapped child at university some much-needed rent money before they plunge into their overdraft again. Faster payments mean that the agonising waiting period added to payment transfers is cut – giving you and those you are paying some extra peace of mind.

How do faster payments work?

The Faster Payments Service allows customers of certain banks or building societies to make quicker electronic payments or transfers over the phone or online./p>

Funds can be transferred and accessed within a couple of hours instead of days, while standing orders can be set up in a single day.

Banks and building societies operating the Faster Payments Service can process payments and transfers 24 hours a day, any day of the week. This includes weekends and Bank Holidays.

Four things to check when making a faster payment

There are four things you need to check before you can make a faster payment:

  • Does your current account provider take part in the Faster Payments Service? Not all banks and building societies do. Find out here if your provider is a participant in the scheme.
  • Find out if there are any transaction or daily value limits on how much money your can transfer via the Faster Payments Service. If the amount exceeds your provider's value limit, your payment may be rejected
  • If you are paying a bill, check that the company you are paying accepts faster payments (you should be able to find this information on the reverse of a utility bill for instance, or by calling them).
  • If you're making a payment to a person, check that their bank or building society will accept faster payments.

Looking for a new current account? Find the best bank account for you by comparing bank accounts bank accounts

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

Related Articles

Q&A: How will Co-op’s bailout affect me?

The Co-operative Bank is in the midst of a bailout plan intended to prevent it from collapsing. As it stands the finer details are still being discussed, but the gist is that the Co-operative Group will retain a 30% share of the bank.

How to switch current accounts

A large number of current account customers avoid switching accounts due to worries that it could take too long or be "too much of a hassle".

Current account switching - who's participating?

The Current Account Switch Service means participating banks and building societies will complete the process of switching a customer's old bank account over to the new account in seven days or less
Free Mortgage Advice
Our partner, Premier Financial Group will search the market and advise you on the best residential or buy to let mortgage deal to meet your needs.
Tel: 0800 193 6644
Lines are open 8am to 8pm, Monday to Friday
" … could not have done more for us and went above and beyond to make sure we were happy with the service. Polite, professional and efficient is an understatement.”
- Matthew, Norwich
For more information on Premier Financial Group and the mortgage advice service please click here.