Full name: Bankers Automated Clearing Services Timescale: Within 3 working days Cost: Free Min/Max Limits: None Examples: ◦ Direct Debit (backed by the Direct Debit Guarantee) & Direct Credit (i.e., regular payments of amounts that may vary - not Standing Orders), e.g., salaries and bill payments ◦ One off payments, including telephone and online, where Faster Payments (FPS) is not available Use by: ◦ Setting up a Direct Debit/Credit ◦ Requesting a transfer from an account that doesn’t allow FPS
Organisation: Bacs Payment Schemes Automated Ltd Launch Date: 1968 (as Inter-Bank Computer Bureau) Milestones: ◦ 1971 - Rebranded Bankers Automated Clearing Services Limited ◦ 1983 - Launched BACSTEL moving mechanism from magnetic tapes to telephone lines ◦ 1985 - Rebranded to Bacs Ltd ◦ 2005, Dec - Migration to BACSTEL-IP - moving from telephone to internet mechanism
Full name: Clearing House Automated Payment System Timescale: Same day (if funds are sent before 3pm) Cost: Approx. £25-£35 per transfer Min/Max Limits: None (see cost) Examples: ◦ High value transfers such as buying property or a car ◦ Anything over the limit for FPS, inter bank transfers To use: Request transfer in branch using identification for extra security
Organisation: CHAPS Co Launch Date: 9 Feb 1984 Milestones: ◦ 1992 - Minimum limits removed ◦ 1996, Mar - Real-Time Gross Settlement (RTGS) launched ◦ 1999, Jan - Launched euro transfers ◦ 2008, May - Ceased euro transfers in response to the launch of the TARGET2 system across EU ◦ 2011, Jul - Transfers reached £1 quadrillion
Short name: FPS Timescale: Instant (within 2 hours) Cost: Free (in practice) Min/Max Limits: Varies, usually around £10k for retail and £100k for corporate customers Examples: ◦ One-off personal transactions ◦ Standing Orders* To use: ◦ Request single transfer online, by telephone or in- branch ◦ Direct Corporate Access (DCA) allows corporate customers to submit bulk payments via the service using secure IP verification
Organisation: ◦ Faster Payments Scheme Limited ◦ Requested and governed by Payments Council (formed from a OFT taskforce) ◦ Launched by UK Payments Association (formerly APACS) ◦ Briefly run by CHAPS ◦ Infrastructure built by VocaLink Launch Date: 27 May 2008 Milestones: ◦ 2008, May - Control passed to CHAPS Co. ◦ 2009, July - First DCA payment made ◦ 2010, Sept - Upper limit set at £100,000 ◦ 2011 - Control passed to new Faster Payments Scheme Limited ◦ 2011, end of - all BACS sortcodes able to receive FPS*Satisfies the requirement that all internet, phone and SO paymentsmust be processed by the end of the next business day
What is Bacs? What is CHAPS? What are Faster Payments? Bacs website CHAPS website UK Payments Administration (formerly APACS)
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