It allows for near-immediate electronic payments, making sending money to others or paying bills faster and more convenient.
The Faster Payment System (FPS) is always available, and you can make faster payments and transfers via:
Unlike a BACS payment, which typically takes up to 3 days, Faster Payments are near-immediate.
In most cases, funds arrive in the recipient’s bank account within seconds. Faster Payments may occasionally take up to 2 hours to go through but this is uncommon.
However, you should use these timeframes as a general estimate. Both BACS and Faster Payments are subject to internal checks, so you may get your funds later than expected.
The most common ways of using Faster Payments are through single immediate payments and standing orders.
Single immediate payments are one-off payments made through your bank account using online banking, your mobile banking app, or visiting a bank branch. The transaction will be subject to internal checks, but the funds can potentially arrive in the recipient’s account within seconds.
A standing order is a recurring payment method where you regularly authorise your bank account to send a specific amount of money to another account. This is useful for making regular payments, such as rent or subscriptions.
The Faster Payments System has limits on how much you can transfer in a single payment.
The Faster Payments limit depends on the bank or building society you’re using, but the limit is typically up to £25,000 for personal transactions and up to £1 million for business transactions.
If you want to make a payment above the Faster Payments limit, consider alternative payment methods, such as CHAPS.
The differences between CHAPS and Faster Payments are in speed and transaction limits.
CHAPS guarantees same-day arrival for high-value transactions, while Faster Payments provide near-instant transfers for smaller amounts of money. Both payment methods are subject to internal checks, so the funds may arrive later.
If you make a CHAPS payment through telephone banking, there will be a transaction limit. However, there won’t be a specific limit if you complete the transaction in a branch, unlike Faster Payments.
This means you can transfer amounts above the Faster Payments limit, but you’ll also pay a fee depending on the type of account the recipient has. You don’t have to pay a fee when transferring with Faster Payments.
