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Everything you need to know about Faster Payments

Everything you need to know about Faster Payments
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 send. The payment will arrive within a minute and is 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. This can be especially helpful when you run on a weekly payroll schedule.

Faster Payments limits

The general limit is 250,000 pounds per payment. But, be aware that some banks have lower Faster Payment limits than the service limit of 250,000 pounds starting at 10,000 pounds per payment. They like to overcharge businesses and offer them more expensive CHAPS payments instead.

Faster payments cut off times

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 Payments charges

Faster Payments is one of the most expensive options to send bank payments, which will often be 1 to 5 pounds per payment. However, because of new entrants such as Telleroo and others banks won’t get away with this anymore. Currently they are trying to either have you use Bacs or very expensive CHAPS (10 pounds plus, also known as same-day payment).

How to get started with Faster Payments

Sending individual payments through any online business banking in the UK will most likely be a Faster Payment, meaning to send individual FPS is very simple, mostly free, and accessible to even very small businesses. When it comes to sending more than a handful of payments it becomes more difficult and you are left with three options:

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.