Apacs confirms FPS for standing orders

The Association for Payment Clearing Services (Apacs) has confirmed the new Faster Payments Service (FPS) system has been rolled out for standing order payments.

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.

The chance should enable payments to clear on the day they are sent, on bank working days.

Previously it took up to three days for payments to move between accounts – leading consumers to complain funds disappeared into a 'black hole'.

As with internet and phone payments the rollout 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.

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

"For the first time, instead of taking three days to clear, the FPS will enable standing orders to reach the recipient on the same day, providing it is a bank working day and the payment is under £100,000," Apacs confirmed in a statement.

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.

The introduction of the FPS for standing orders follows the successful start for the rollout of the service for telephone and internet payments.

Since the introduction of the service, 885,719 payments have been made, to a total value of £522,383,231.

The thirteen founding members of the service are: Abbey; Alliance & Leicester; Barclays; Citi; Clydesdale and Yorkshire Banks; Co-operative Bank; HBOS; HSBC; Lloyds TSB; Nationwide; Northern Bank; Northern Rock, Royal Bank of Scotland Group (including NatWest and Ulster Bank).

Chris O'Toole