Account transfers to speed up in 2012
A statement from the Payments Council said the maximum timescale for phone and internet payments, known as D+1, requires payments across the EU to reach the recipient’s account by the next working day.
However, Adrian Kamellardall, chief executive of the Payments Council, said the UK already exceeds this requirement under its Faster Payments process, which being processes payments within two hours.
The D+1 change is expected to bolster the number of Faster Payments by 25 per cent, creating an additional 15m internet, phone and standing order payments per month. So far in 2011, more than £200bn has been processed in more than 500 million Faster Payments transactions, according to the Payments Council/
To help consumers make sense of the change, the Payments Council’s consumer education campaign PayYourWay.org.uk, has produced a factsheet.
Mr Kamellard said: “This is great news for consumers and businesses. More bills are going to be paid more quickly through Faster Payments and the change will mean more certainty if you have been sent money too.
“Not all payments we make will fall under this regulation and it is important to understand which will and which won’t. If you want to know more about how the changes will affect you, or just need advice on how to get started with internet banking, payyourway.org.uk has advice and guides on every aspect of payments.”
The move follows calls from the Independent Commission on Banking to speed up account transfers.
The change does not apply to cheque payments.