finance · BBC ↗

Bank payments system 'confusing'

BBC Published Jun 11, 2010 Reviewed Jul 2, 2026 ✓ Reviewed by citations.press editors

One in four credit card companies still cannot receive faster payments.

0.25 · credit card companies

80% of one-off phone and internet transfers do clear on the same day.

80 · one-off phone and internet transfers

Only half of all standing orders can be sent as fast payments.

50 · standing orders

Alliance and Leicester put a limit of £250 on faster payments.

250 GBP · faster payments

Nationwide can transfer £1,000 on the same day.

1000 GBP · faster payments

Barclays can send up to £10,000 as a faster payment.

10000 GBP · faster payments

Limits for faster payments range from £25 with Clydesdale to £100,000 with Northern Rock.

25 GBP · faster payment limits100000 GBP · faster payment limits

The Faster Payments scheme began two years ago.

2 years · Faster Payments scheme

Customers are still waiting three to four working days for money to clear under Faster Payments.

3 days · money clearance4 days · money clearance Phil Jones, personal finance campaigner

80% of one-off phone and internet transfers clear on the same day.

Alliance and Leicester limits faster payments to £250.

Many customers are still waiting three to four days for money to clear, two years after the Faster Payments scheme began.

Phil Jones of Which? stated it is unacceptable that many customers are still waiting three to four working days for money to clear two years after the introduction of faster payments.

at least 3 working days · waiting time for money to clearat least 4 working days · waiting time for money to clear

Jemma Smith of UK Payments stated that faster payments with higher limits have not been available from all banks and building societies from day one, often due to security reasons.

A system designed to make banking transactions quicker and easier has been branded unfair and confusing by the consumer group Which?

Many bank and credit card customers are still waiting three to four days for money to clear, even though the Faster Payments scheme began two years ago.

One in four credit card companies still cannot receive faster payments.

Although 80% of one-off phone and internet transfers do clear on the same day, the amount allowed varies widely.

Alliance and Leicester put a limit of £250 on faster payments, with Nationwide £1,000 can be transferred on the same day, but with Barclays as much as £10,000 can be sent.

Only half of all standing orders can be sent as fast payments and the limits range from £25 with Clydesdale to £100,000 with Northern Rock.

''It's unacceptable that, two years on from the introduction of faster payments, many customers are still having to wait three to four working days for money to clear." said Phil Jones, personal finance campaigner at Which?

''The limits set are confusing and customers can be caught out with default fees which could affect their credit rating if the money does not clear in time.''

Ian Perryman is a buy-to-let investor who lives in Southsea, Portsmouth. He contacted the BBC after problems he experienced trying to transfer money.

''I find the system very frustrating. I have several bank accounts and, sometimes, if a tenant moves out and one of the flats is empty, I have to move money around quickly.

"It adds an extra complication to all my transactions as I try and work out if the money will clear on the same day or if I need to wait extra days.''

The UK Payments Administration lists on its website the limits banks and building societies set on faster payment transactions.

''It is disappointing that faster payments with higher limits have not been available from all banks and building societies with higher limits from day one, but often they have been restricted due to security reasons,'' said Jemma Smith from UK Payments.

''If you are a customer and you rely on making time sensitive payments, you need to think about whether you have the right bank account.

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