Faster payments system introduced in Britain

News Article - 28 May 2008
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A faster payments system could help companies to keep more accurate accounts and speed up banking transfers.

Launched this week, the new 'faster payments service' will provide one-day cash transfers between accounts via both the telephone and the internet.

Under the changes, electronic payments between deposit accounts will be cleared within hours rather than taking up to four days to complete.

Only a select number of the UK's 70 retail banks have rolled out the faster transfer service, with just the Royal Bank of Scotland allowing customers to transfer up to £10,000 using the new system immediately.

Banks have been criticised for delaying rapid cash transfer services, with experts claiming that they can earn as much as £30 million a year by holding onto the cash for a few days.

Eddy Weatherill, of the Independent Banking Advisory Service, told the Times newspaper: "By dragging their feet the banks can continue to profit. The launch is nothing but a publicity exercise."

Small businesses with accounting software will benefit from faster transfers between accounts and easier movement of funds.

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