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Market Change

Faster Payments

The United Kingdom's new "Faster Payments Service" (FPS) continues to grow in importance as the vast majority of UK personal and business bank accounts have now become 'reachable' via the service.

Launched on 27th May 2008, Faster Payments is the first new UK payment service to be launched for over 20 years. Citi is a founding member of Faster Payments and views it as a platform that can serve as the foundation for a range of further radical payment innovations in the months and years ahead.

The Faster Payments Service enables electronic payments to be processed in hours (often just seconds!) rather than taking days. Furthermore, Citi customers can receive Faster Payments into their accounts 24 hours a day, 7 days a week. Significantly extended submission windows for sending payments are also a key benefit of the new service when compared with the older UK electronic payment schemes (Bacs and CHAPS).

On 4th May 2010 a new record was broken when almost 6.4 million Faster Payments were made over the new network (between all participating banks) in a single day. This record is likely to be broken regularly as more and more individuals and firms adopt the new service, and as the initial payment value restrictions are raised or lifted altogether. Citi is one of the few banks that has enabled clients to send payments up to the relevant maximum permitted value limit ever since the service went live. It is expected that value limits will be increased / aligned at £100,000 for all Faster Payments in Autumn 2010.

As you navigate the fast pace of change from regulation, technology and the global marketplace your Citi team is fully committed to being your banking partner of choice. For more information on how your organization can take advantage of the benefits of Faster Payments you can:

  • Obtain additional background to the Faster Payments scheme and project at www.chapsco.co.uk
  • Contact Citibank using the 'Contact Us' button in the left hand menu

Faster Payments explained

The development of the Faster Payments service has cost many millions of pounds, requiring investment in a brand new, state of the art, 'Central Infrastructure' (CI) connecting UK banks, plus new payment processing systems within each member bank / building society. VocaLink Ltd is providing the Central Infrastructure that supports the 'near real-time' transaction processing services.

There are three types of Faster Payments transactions that can be sent / received:

  • Single Immediate Payments (SIPs) - typically arise when a customer initiates a payment via telephone banking or internet banking services, and requests the transaction to be made straight away. Initial scheme level max. value limit: £10,000.
  • Forward Dated Payments (FDPs) - are usually initiated in the same ways as SIPs as individual, one-off payments, but where the payment is to be actually sent at a future date. Initial scheme level max. value limit: £10,000.
  • Standing Orders (SOs) - are regular, recurring, payments made on a specific date for the same amount, to the same person or beneficiary. These payments will continue to be made on 'bank working days' only, unlike the other two types which can be sent / received seven days a week. Initial scheme level max. value limit: £100,000.