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What the developments in the Faster Payments Service will mean for your business
Faster Payments from your account
At Bank of Scotland Business Banking we aim to give you the financial services you need to grow your business.
Faster Payments is one of those helpful tools, which will change the way you run your business for good.
You may have already received Faster Payments since the initial launch in May 2008, this is thanks to the introduction of the Faster Payments Service.
You can request Immediate Faster Payments and Future Dated Payments via Telephone and Internet Banking from your account. Where possible, we also send Standing Orders via the Faster Payments Service, signifcantly reducing the time taken for Standing Orders to reach a beneficiary account.
You can make the most of Faster Payments, by registering for Internet Banking. Simply call 0845 300 0268.
The Facts about Faster Payments
Q: What are the benefits of the Faster Payments Service?
A: It will provide:
• ‘Near real time' payments (typically within two hours for Immediate Payments) to or from your account, giving you greater control over your accounts and cash flow
• A cheaper alternative to CHAPS for payments less than £10,000 and where you do not need a same-day guarantee
• Clear working capital advantages, with the potential to increase interest income by allowing payments to be submitted on their due date
• The ability to make payments 24/7, 365 days a year
Q: How fast will the new service be?
A: Faster Payments will enable Standing Orders and Future Dated Payments to be made on the same day and Immediate Payments typically within two hours.
Q: Will it replace Bacs and CHAPS?
A: The new system will run alongside the Bacs system. Where possible Faster Payments will be used for payments currently sent via Bacs, specifically Immediate or Future Dated Payments through Internet and Telephone Banking, which you elect to send through the Faster Payments Service. Where a payment, for example a Standing Order, was made by Bacs and now uses Faster Payments, the most noticeable difference is the speed. Bacs payments take three bank working days to process (from instruction being sent to the beneficiary receiving cleared funds). Faster Payments will be either within two hours or same day depending on the payment type.
CHAPS is unaffected by the introduction of Faster Payments. You can still use CHAPS as you do now; unlike Faster Payments there is no limit to the amount of funds that can be transferred. Immediate Faster Payments have a maximum limit of £10,000 (per payment) so may be more suitable for your transfers below this limit. We will let you know within seconds of sending an Immediate Faster Payment if it has been accepted by the receiving account along with an indication of when the beneficiary should expect to receive the funds.
In addition, unlike CHAPS Payments which can only be made between 8am and 2.30pm on UK banking days (through the Business Banking Telephone Banking Service), Faster Payments can be made 24/7 365 days a year.
Q: I currently send and receive Standing Order payments. Will this change because of Faster Payments?
A: You will continue to receive Standing Orders although they may be received two days earlier if the remitter retains the current payment date and the Standing Order is processed by the remitter's bank through the Faster Payments Service. Similarly, if your Standing Order Payment is to a beneficiary account which accepts Faster Payments, then it may also be received two days earlier. Standing Order cancellation requires two business days notice prior to debit date to be effective.
Q: How much will it cost me to send Faster Payments?
A: Any Faster Payment you send will cost 45p, whether it's an Immediate Payment or a Future Dated Payment.
Q: Will I see any changes to my account or statement?
A: There will be no changes to your account, although you may notice additional information on your statement. The Notification of Charges page will now include the following new narratives for any debits sent through the Faster Payments system:
• Fee for Immediate Faster Payments – Online
• Fee for Immediate Faster Payments – Phone
• Fee for Future Faster Payments – Online
• Fee for Future Faster Payments – Phone
Please note there is no change to the automated pay-in fee of 30p for these items.
Q: Are there any specific conditions applying to Faster Payments?
A: Yes. Faster Payments:
• Can only be made in Sterling
• Cannot be recalled once initiated, although Future Dated Payments can be cancelled right up until midnight of the day prior to debit
• Standing Order cancellation requires two business days notice prior to debit date to be effective
• Are limited to £10,000 (for both Immediate and Future Dated Payments) and £100,000 for Standing Orders
• Payments can only be sent to accounts that are able to accept Faster Payments
• Can not be sent from a Professionals Account
Q: How do I make Faster Payments?
A: If you are already registered for our Internet and Telephone Banking Services, you can start making Faster Payments from September. If you have not registered for Internet and Telephone Banking Services and would like to take advantage of Faster Payments, simply call 0845 300 0268 or click here
Q: How long will it take for a Faster Payment to clear?
A: Faster Payments clear immediately on receipt. However the timescales from creation to completion will differ depending on the payment type selected via the Faster Payment Service;
Immediate Payment - The whole process from initiating the payment to getting the confirmation of a successful transaction will normally be within seconds and no longer than two hours.
Future Dated Payment - The payments will be debited on the diarised date and received by the beneficiary on the same day.
Standing Order - The payments will be debited on the diarised date or the next working day and received by the beneficiary on the same day as debited.
Customers will be advised of the timescales for sending Faster Payments at the time of using the Faster Payments Service.
Q: When can I withdraw money after a Faster Payment has been paid into my account, and when will the cleared funds start to earn interest?
A: Funds paid into the account using the Faster Payments Service can be withdrawn as soon as they arrive in the account. Credit interest is calculated each day on the cleared balance in the account and is paid in line with the terms and conditions of the account e.g. Business Current Account, interest is paid each month on the last bank working day.
Business Internet Banking
We've made some changes to the Business Internet Banking Service so that you can take advantage of the new Faster Payments Service. Here's a summary of the changes we've made, if you'd like more information please click here
Changes to the Payments Screen
A checkbox has been added in a new column on the Payments screen, where the beneficiary account is Faster Payments enabled. You must ensure you click the checkbox when sending payment via the new service.
Additional information facility
The introduction of a new Faster Payments Details screen now provides the ability for additional information to be sent and received with a Faster Payment.
Additional information can be sent along with a Faster Payment by selecting the Add button within the Additional Info column within the Payments screen. Similarly, any additional information received with an inbound Faster Payment can be viewed by selecting the Details button within the Additional Info column on the Statement screen.
Faster Payment Status screen
The introduction of a new Faster Payment Status screen allows users to view details of all Faster Payments sent within the preceding 14 days. The progress and outcome can be tracked this way.
Telephone Banking Service
You may also currently use the Telephone Banking Service for making account transactions . The good news is that Telephone Banking will also offer the Faster Payments Service. Simply call your usual number.
Personal account access
For those Personal accounts where you can currently make payments via Business Internet Banking, to organisations outside of Halifax or Bank of Scotland, the Faster Payments Service will be available. For those accounts where you can only view or transfer funds to another account within your access, the Faster Payment facility will only be available through the Personal Online and Telephone Banking Services provided the account is registered for these services.
Personal Banking customers can find further details of this new service by clicking here.
Keep visiting this page for up-to-date information on Faster Payments.
Further information is also available at http://www.apacs.org.uk
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