It allows to execute Direct Credit, normally Transactions are settled near a real-time to the submission of order. It works 24 hours per day, 7 days a week and 365 days per year. It is faster than BACS but has a higher restriction on the amount which can be sent than CHAPS. The main drawback of Faster Payments is that it has a maximum cap of transfer standing at EUR 250,000, but individual Financial Institutions will normally impose a lower threshold. It is more expensive than BACS but cheaper than CHAPS.
It works in the same manner as all other Clearing Systems.