The UK Faster Payments Service has increased the amount that can be sent in a single transaction.
From February 8th 2022, the amount has quadrupled from £250k to £1 million. This increase in transaction limit reflects demand from corporate customers and helps to provide greater choice in the market for those organisations wishing to make higher-value payments.
Faster Payments are electronic payments that can be made online, over the phone, in a branch or via self-service machines offered by many banks. Previously this only worked if both the paying and receiving bank (or building society) were signed up to the system, but now every bank and building society in the UK is now able to send and receive Faster Payments, with over 400 connecting indirectly to the service through a sponsor bank.
The payment arrives almost immediately (can sometimes take up to two hours). Compared to the frequently used CHAPS payments, which must be set up in branch or by phone before 3:30pm (or online before 5pm) in order to receive them the same day, Faster Payments hold a clear appeal for business payments.
For the individual, this increase in the scheme payment limit means that almost every payment a consumer makes during their lifetime can be made via Faster Payments – even house purchases which hitherto have been subject to expensive CHAPS payments.