What is the Faster Payment Service?
The Faster Payments Service allows bank account holders to make payments online, by phone or at a bank branch. Payment up to a maximum amount of £250,000 can be made using this method but the limit varies significantly depending on both the type of bank account that the payment is being made from and the bank that holds the account (many accounts will have much lower limits).
This method can be used for making same-day payments or transfers without incurring the costs associated with CHAPS. It can also be used to make future dated payments (where you specify a future date when the funds will be paid) and for use in paying standing orders.
When making a same-day payment using the Faster Payment Service the money will leave the account immediately and should arrive in the other bank account within two hours (it usually arrives within seconds).