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Say 'Au Revoir' to 3 day clearing

Speed Banking - Same Day Transfers Go Live

27-May-2008, Writes Dan Drage dan.drage@consumerchoices.co.uk

Banks are rolling out a new payment system which will eliminate the three day clearing black hole.

The innovative system, tested by banks over the last few weeks and due to be rolled out gradually over the summer, will benefit customers by processing ‘one off’ internet and phone payments in hours rather than days.

The system will also enable bank customers to make payments of this nature 24/7, and standing order payments will also be made immediately on bank working days.

Paul Smee, Chief Executive at UK payments association APACS, provided the following insight:

‘The final part of this enormously complex project has been to test the new system in a live environment. Hundreds of penny payments have successfully been made between the participating banks.’

Limits on the value of payments sent through this rapid payments service will be £10,000 for internet and phone payments and £100,000 for standing orders.

Some banks will play it safe and initially adopt lower limits.

Chris Eagle, Commercial Manager at Credit Choices, welcomes this progressive move:

‘With Chip + Pin and internet banking now up and running relatively glitch free, it’s inevitable the three day clearing black hole would be the next old fashioned banking standard to be overhauled’

He continues:

‘Having standing orders transferred almost instantly between accounts will benefit a large number of bank customers, particularly those with online accounts. Monitoring your account has never been easier.’

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