Faster payments do exactly what they say on the cover: they are a way to perform payments faster. But how truly fast are they? And how do you make one from your bank account?
Making use of faster payments can determine the difference between paying or missing that red bill, or getting your cash-strapped child at university the required money to pay their rent before they dive into their overdraft yet again. Faster payments mean that the excruciating waiting period that is added to payment transfers is lessened– giving you and those you are paying extra peace of mind.
How do faster payments work?
The Faster Payments Service enables customers of certain banks or building societies to perform quicker electronic payments or transfers online or over the phone.
Funds can be accessed and transferred within a couple of hours instead of days while standing orders, on the other hand, can be set up in one day.
Banks and building societies that are operating the Faster Payments Service are able to perform processing of payments and transfers 24 hours a day, any day of the week which includes weekends and Bank Holidays.
Four things to check when making a faster payment
There are four things that you need to check before you can make a faster payment:
- Does the provider of your current account take part in the Faster Payments Service? Not all banks and building societies are participating in the said service. You can find out here if your current provider is a participant in the said scheme.
- Verify if there are any transaction or daily value limits on the amount of money that you can transfer using the Faster Payments Service. Your payment may be rejected if the amount exceeds the value limit your provider.
- If you are paying a bill, verify if the company that you are paying is accepting faster payments (you should be able to look for this information on the back of a utility bill for instance, or by contacting them).
- If you are making a payment to an individual, check if their bank or building society are accepting faster payments.