Faster payments equals more confusion?
Consumer group Which? have branded the system designed to speed up and simplify banking transactions as confusing and unfair.
Many bank and credit card customers are still waiting three to four days for money to clear, even though the Faster Payments scheme began two years ago.
Faster Payments
As many as one in four credit card companies are still stuck with last century payment speed, having not switched to using the faster payments system to recieve funds.
Four out of five one off money transfers over the phone or online clear the same day, the amount allowed using Faster payments varies massively.
The banks are clearly confused as to the rules of the system, as the limits on the Faster Payments range from as little as £250 with Alliance and Leicester, upto £10,000 with Barclays!
Standing orders are another area of confusion with different limits again, as little as £25 if you bank with Clydesdale Bank. ONly half of all standing orders are eligible.
It is not acceptable in this day and age to wait for upto 4 days for money to be transferred fro one bank to another, when all that needs to happen is a small transfer of data behind the scenes, something which is possible in a fraction of a second. Interest made on money ‘in transit’ must be huge, and in our opinion if you rely on time senstive payments, you need to consider which bank you are with.
For a full list of banks, credit cards and their limits for Faster Payment system, please see below:
| Bank | Availability | Value Limit |
| Alliance & Leicester | Yes, phone and internet | £250 |
| Bank of Scotland | Yes, phone and internet | Retail customers- £2,500Corporate customers- £10,000 |
| Barclays | Yes, phone and internet | £10,000 |
| Citibank | Only available to corporate customers via Internet | £10,000 |
| Clydesdale (including Yorkshire Bank) | Yes, phone and internet | £1000* |
| Co-operative | Yes, phone and internet | £1000 |
| Danske (Northern Bank) | Yes, phone and internet | £10,000 |
| HSBC | Yes, phone and internet | £10,000 |
| Lloyds TSB | Yes, phone and internet | Retail customers £10,000*Corporate customers £10,000 |
| Nationwide | Yes, phone and internet | £1,000 |
| Northern Rock | From 2010, for customers with saving accounts, via the internet | N/A |
| Royal Bank of Scotland (including Natwest & Ulster Bank) | Yes, phone and internet | £10,000 |
| Santander UK plc | Yes, phone | £300 |
*Telephony limits available upon request.
Data last updated 9 June 2010
Will my regular Standing Order payment be processed as a faster payment?
| Bank | Availability | Value Limit |
| Alliance & Leicester | No | N/A |
| Bank of Scotland | Yes | Retail customers- £1,000Corporate customers- £100,000 |
| Barclays | Yes | £100,000 |
| Citibank | Only available to corporate customers via Internet | £100,000 |
| Clydesdale (including Yorkshire Bank) | Yes | £25 |
| Co-operative | Yes | £2,500 |
| Danske (Northern Bank) | Yes | £100,000 |
| HSBC | No, Sept 2010 | N/A |
| Lloyds TSB | Yes | £1,000 |
| Nationwide | Yes | £1,000 |
| Northern Rock | Yes | £100,000 |
| Royal Bank of Scotland (including Natwest & Ulster Bank) | Yes | £2,500 |
| Santander UK plc | Yes | £1000 |
Data last updated: 20 May 2010
Source: www.chapsco.co.uk
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14:29
I noticed today (04/10/2010) that a £5 standing order from my Alliance & Leicester Account to The Halifax has gone by the faster payment scheme. Things must be changing.