This new facility aims to assist UK banks increase their capability to offer the service to customers. This change reflects demand from some corporate customers, and which are mostly expected to benefit from it over the coming months. The threshold for standing orders remains unchanged at GBP 100,000.
Although this change came into effect on Monday 6th September, individual banks and building societies will continue to set their own value limits for their corporate and consumer customers.
According to CHAPSCo statistics, 91percent of Faster Payments are for amounts under GBP 1,000. Also, 82percent of all online and phone payments in the UK are currently processed via Faster Payments. The remaining payments continue to be processed via the existing Bacs three-day service.
The Faster Payments Scheme enables phone and online banking payments, as well as standing orders, to be processed within hours and was launched in May 2008. There are 13 members. The CHAPS Sterling Scheme enables same-day bank-to-bank payments in sterling and has 17 members.
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