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Use Faster Payments instead of Bacs or CHAPS

Use Faster Payments instead of Bacs or CHAPS

October 29, 2019

Sending money to split the dinner bill is a piece of cake, instant and free. It feels smooth and effortless. Who would have thought that in contrast business payments are slow, unbelievably slow and expensive, unbelievably expensive. Luckily there is an alternative to slow and expensive payments for your business and that is to use a Faster Payments service instead.

Table of Contents

What is Faster Payments

Faster Payments is an electronic payment system to send bank payments in seconds instead of three working days. This is the standard way for consumers to send money, however, for businesses Bacs payments is still the primary option as it has been the standard every finance person has been used to for decades. That is one reason Telleroo started to support Bacs files to send Faster Payments.

How long do Faster Payments take

Faster Payments only take seconds to clear. Funds will arrive within in the minute and are immediately visible in the recipients' bank account which means you will have instant business payments, unless the sending or receiving bank has limited access to Faster Payments which may cause delays. The system runs 24/7 including public holidays and weekends.

Faster payments cut off time

The Faster Payments system itself runs round the clock, however, your bank might have cut-off times as early as 5:30pm. Which means if you want to send a payment at 6pm it does not go through until the next morning. Telleroo though does not have any cut-off times which allows you to send money anytime of the day, no matter if it is a weekend or the middle of the night - it will always go through straight away.

Faster Payment charges

Instant payments usually come with a heavy price tag in the form of CHAPS payments, more widely known as same day payments for a charge of about 20-30 pounds (depending on your bank). This form of payment are meant for big corporations that need to send high amounts. For businesses with a payment size of less than 250,000 pounds per payment Faster Payments is the cheaper option. Sadly, some banks do have lower limits than 250k forcing you to opt for CHAPS, so they will be able to charge you much higher fees.

We at Telleroo are committed to end this era of slow and expensive business payments to eventually level the playing field, and make business payments as effortless as consumer payments.

Top Tip from Telleroo

You are probably aware that keying in payments individually is a nightmare and that you wish you could just import a pay run for your business or clients.

This is now possible using a pay run importer like Telleroo that works with most accounting software files and banking files.

Import payments, schedule and fund, without the hassle of manually keying in your payments.