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Banks to charge for Faster Payments

Karl Flinders
Thursday 19 July 2007 12:00

Certain banks plan to charge customers for usingFaster Paymentservices, according to a survey of six of the banks involved.

The findings were revealed in research from security supplier Thales and come on the back of a recent announcement from Apacs that the introduction of Faster Payments will be delayed.

Paul Meadowcroft, Head of Transaction Security from the e-Security activities at the company, said, "The member banks are currently focusing on the implementation phase of their Faster Payments schemes. However, the majority have already made a decision as to whether customers will be charged for escaping the three-day float time that currently exists with person-to-person internet and telephone transactions."

He added that of the banks surveyed, half will not charge for the faster service, but 34% confirmed that there would be some sort of charge for the customer.

The survey also revealed that 84% of the banks interviewed plan to use two factor authentication to secure these transactions.

"The respite offered by Apacs is however welcomed by the banking community as it allows for more time to consider how best to implement the fraud risk modelling solutions that are not yet in place. It is clear however that banks see two-factor authentication as part of the solution to improving security within the Faster Payments environment.