Standing orders now paid through Faster Payments Service

From today (6 June), standing orders can be paid through the new Faster...

From today (6 June), standing orders can be paid through the new Faster Payments Service, said UK payments body Apacs.

Following the introduction of the new service for telephone and internet payments at the end of May, standing orders will now start to be processed through the new infrastructure, enabling the payments to clear on the day they are sent on bank working days.

As with internet and phone payments, the roll-out will be gradual, but it is expected that the majority of standing orders will be processed faster through the new service by the end of the year, said Apacs.

For the first time, instead of taking three days to clear, the Faster Payments Service will enable standing orders to reach the recipient on the same day, providing it is a bank working day and the payment is for less than £100,000.

Standing orders are typically used to make regular charity donations or subscriptions, for regular payments for life insurance or endowment policies, and to make regular contributions to a savings account.

Any payment not made through the new service will continue to be processed through the existing Bacs three-day service.

The introduction of the Faster Payments Service for standing orders comes following the successful start for the rollout of the service for telephone and internet payments.

The millionth payment is expected to be processed by the end of today (6 June), said Apacs.




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