Glossary

Faster Payments

Is an Automated Clearing System which facilitates Transaction Settlement between Financial Institutions in the United Kingdom. 

How does Faster Payments work?

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.

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