The ultimate guide to making same-day payments

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Posted on
June 7, 2021
Topics
Faster payments
Banking

The ultimate guide to making same-day payments

What is a CHAPS Payment?

CHAPS payments (Clearing House Automated Payments System) are high security same day payments that are used for high value transfers. They are the most expensive way of making payments and banks charge up to £35 per transfer. Payments have to be submitted before the end of a working day (e.g. Barclays: 3.30pm in a branch or 5pm online). If the cut off times are missed, payments will not go through until the next business day.

We think that you should only make a CHAPS payment if the payment value exceeds £250,000. Otherwise, you can simply make a Faster Payment at much lower or even no bank fees. Your fee structure will depend on if you are a business or a corporate customer at your bank.

Barclays Same Day Payments

As a regular Barclays business banking customer, any domestic bank transfer arrives instantly in the payee's bank account. Even if you tried, you couldn't make a Bacs payment or a next day payment using Barclays online banking. Both options that you see, 'Make a payment' and 'Same day payment (CHAPS)', are in fact same day payments.

When clicking 'Make a payment' this allows you to make a Faster Payment that transfers immediately, but is capped at £250,000 per payment. This option can be faster than CHAPS if it is after 3.30pm that day. This payment option isn't subject to any cut off times and clears around the clock.

The only reason you'd ever go for a same day payment (CHAPS) in Barclays is if the value of the payment is over £250,000. For any other payment the regular “Make a payment” option will suffice and won't cost you £25 per line.

Faster Payments

Faster Payments are also used to send same day payments. It sends payments within a minute and the system runs 24/7 without any cut off times. Faster Payment transfers currently have a limit of £250,000 per transaction.

As a regular business banking customer this normally comes with no transaction fee. Fees only kick in once you upgrade to become a corporate client such as a Natwest Bankline user. Charges range from £2.50 per payment to £5 per line.

Next Day Payments

As a Corporate banking customer you have more options to choose from when making bank payments vs using regular business banking. Unless you rely on immediate turnaround times, you can schedule a bank payment for the next day. Such payments are subject to cut off times sometime in the afternoon.

Next day payments can save you significant amounts in banking charges. Bankline charges £2.05 less per next day payment vs a same day Faster Payment.

Best ways to make same day faster payments

Making individual payments is simple, mostly free, and accessible through regular business banking. The minute you can't submit every single payment manually anymore it becomes more difficult. We have outlined your options here:

  • Apply to become a Corporate client at your bank (i.e. Barclays.Net or Natwest Bankline)
  • Transferwise offer Faster Payments
  • Tipalti or Payoneer have a Corporate payments product
  • Use Telleroo to make instant bulk payments

At Telleroo we're committed to ending this era of slow and expensive business payments. We want to level the playing field and make your business payments as effortless as consumer payments.

Get a free test account HERE and compare us to your Corporate Banking System