What is a Faster Payment?

Faster Payments is an initiative introduced in 2008 and operated by payments authority Pay UK. It allows funds to be transferred rapidly and securely between UK bank accounts at any time.

How do Faster Payments work?

Businesses can make Faster Payments in several ways, including via mobile banking, internet banking, telephone banking, in-branch and by using payment platforms.

How can businesses benefit from Faster Payments?

Faster Payments help businesses by providing a quicker and more convenient solution for moving money. The scheme’s primary goal is to reduce the time – from initiation to receipt of the funds – that it takes to complete a payment.

What types of businesses can use Faster Payments?

Any UK business requiring domestic disbursement of funds (and international companies looking to send money within the UK) can use Faster Payments.

Are Faster Payments free?

No, there are fees involved in using Faster Payments for businesses. The fee is completely different for each business and depends on different factors such as industry and volume of payments.

How long do Faster Payments take?

Faster Payments take a matter of seconds. Provided the beneficiary’s bank is also a direct participant of the Faster Payments Scheme, the money will be received almost instantly. In rare cases, Faster Payments may take up to two hours.

Do Faster Payments have a transaction limit?

Faster Payments have an individual transaction limit of £250,000.

Can Faster Payments be reversed?

No, Faster Payments cannot be reversed or cancelled.

Which banks use Faster Payments?

The Faster Payments Scheme states that 99.99% of UK bank accounts can accept Faster Payments. Non-bank payment platforms, such as Equals Money, can also use the scheme.

16/09 - UK inflation could allow BOE wiggle room

GBP: Risks to the downside as BOE meet begins

EUR: Camping in a range

USD: Chinese yuan strength keeps dollar on back foot

Sterling

It’s Bank of England rate decision day tomorrow and in concert with this morning’s inflation numbers the mood music looks increasingly dovish in the UK. While the Bank’s mandate is to keep inflation as close to the government’s 2% target as possible, this morning’s announcement that inflation is currently running at a tenth of that figure alongside the upcoming cliff in government support for workers suggests that while tomorrow may be too soon for the Bank of England to loosen monetary policy any further, markets will be looking for signs in the Bank’s language that extra stimulus is coming soon.

If you fold those expectations in with the increasing negativity around the UK’s Brexit negotiations and, in our eyes, sterling is trading very much on borrowed time.

Euro

German ZEW economic sentiment is not normally a market mover and yesterday’s iteration proved to be no exception with the single currency staying pretty sanguine throughout the session. We expect today to be similar ahead of tomorrow’s inflation announcements from the region.

US Dollar

China’s moves to strengthen the yuan against the USD has pushed the greenback lower across the board this morning. Stronger retail sales and industrial production news from China has prompted the latest rally in the Chinese currency and while we do expect the CNY to weaken once the US election is out of the way, that is still 7 weeks away.

We are also seeing a hint of dollar weakness ahead of today’s Federal Reserve meeting although we expect those who are hoping for the Fed to surprise the markets with further dovish notes may well be left disappointed.

Elsewhere

The gains in risk propagated by the stronger yuan have helped the AUD hit higher for the fourth day in a row. We’re happy to call the AUD higher as we head into the US election although a tightening of the polls in favour of Donald Trump would see pressure on currencies with ties to China.

Have a great day.

16/09 - UK inflation could allow BOE wiggle room

16/09 – UK inflation could allow BOE wiggle room

Sterling

Euro

US Dollar

Elsewhere

Jeremy Thomson-Cook

16/09 - UK inflation could allow BOE wiggle room

Register interest

Register interest

Sterling

Euro

US Dollar

Elsewhere

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Jeremy Thomson-Cook