APACS suggests reviewing Standing Order dates
by Gill Montia
Story link: APACS suggests reviewing Standing Order dates
APACS, the UK payments association, has confirmed that Standing Orders are now included in its Faster Payments Service (FPS).
At the end of last month, the long-awaited FPS was introduced for telephone and Internet payments and Standing Orders, which account for around 6% of interbank automated payments, have now been added to the improved transaction process.
They can, therefore, be cleared on the day they are sent if this is a bank working day and the payment is under £100,000.
However, the roll out of FPS is piecemeal and APACS does not expect the majority of Standing Orders to be dealt with via FPS until the end of the year.
Meanwhile, payments not made through the new service will make their way through the banking system via the existing Bacs three-day service.
APACS is advising bank customers that have no need to take any action with regard to the change.
However, when the system is fully applied, they may wish to review their Standing Order dates.
If, for example, a tenant is making a substantial regular payment to a landlord, the Standing Order can be altered to the due date for the rent, allowing the tenant to benefit from extra interest.
According to APACS, over one million payments have been processed via FPS since it was introduced.
Consumer group Which?, estimates that UK banks have been earning £30 million a year from the traditional extended payment times.