The Faster Payments Service (FPS) is an electronic payment system in the UK that allows funds between banks. It was launched in the United Kingdom in 2008 to reduce the time it usually takes to transfer funds between bank accounts from three working days to typically a few seconds (sometimes and depending on the bank of destination it can take up to 2 hours).
In the UK there were two popular methods of transferring money: BACS and CHAPS.
- BACS transfers (Bankers’ Automated Clearing Services) which were introduced in 1968, are typically used by individuals and small businesses.
- CHAPS transfers (Clearing House Automated Payment System) which were introduced in 1984, is a same-day payment system used for transferring large sums of money, usually by businesses and other organizations.
Let’s see the main characteristics of the three schemes that will be useful to know:
|Max. execution time||3 working days||Same day (if the payment is done before 5 pm.)||Often seconds, (sometimes 2 hours, depending on the bank)|
|Max. limit for a transfer amount||£20 million||No limit||£250,000|
|The minimum limit for a transfer amount||No specific||More than £10,000||No specific|
|Limit of remittance characters||18 characters||140 characters||140 characters|
|Feedback on the operation||3 days||Between 12/48 hours||15 seconds|
|Errors information||Lack of information about the cause||Lack of information about the cause||Specific causes, allowing for remediation|
Here you have the banks participants in the Faster Payment System:
- Atom bank
- Banking Circle
- Barclays Bank plc
- Barclays Bank UK plc
- Cashplus Bank
- Citibank NA
- Clydesdale Bank plc
- Equals Money
- Goldman Sachs
- HSBC Bank plc
- HSBC UK Bank plc
- iFast Global Bank Limited
- JPMorgan Chase & Co
- Lloyds Bank plc
- Metro Bank
- Monzo Bank Limited
- Nationwide Building Society
- Northern Bank Limited t/a Danske Bank
- Prepaid Financial Services
- Revolut Limited
- Starling Bank
- Tesco Bank
- The Access Bank UK
- The Bank of London
- The Co-operative Bank
- Turkish Bank UK
- Virgin Money
With the purpose to deliver money as fast as possible, our API is designed to take advantage of the Faster Payments scheme wherever possible.
If some bank of destination is not a Faster Payment participant or the amount of the payment that you want to send is bigger than £250,000, our system will automatically send the money through BACS.
Updated 3 months ago