You can now make payments in Sterling from your personal account to most non-Lloyds TSB accounts - including business accounts - in a matter of hours rather than days. Faster Payments has now started to be rolled out for one-off payments through our Offshore PhoneBank and Offshore Sterling Internet Banking services.
Faster Payments is an industry-wide initiative that means when you send money from your current account, you'll no longer have to wait three days for it to transfer between banks. Instead, most payments to and from your account will happen almost right away.
Most of the major high-street banks are using the new Faster Payments Service, with some of the smaller banks and building societies joining later in the year. The Faster Payments Service will run alongside existing payments systems and similar payment limits will apply.
The majority of payments processed by the Faster Payments Service will be accepted by the receiving bank almost immediately. In most cases the money will have cleared and will show on the recipient's bank account within a couple of hours. However, as other banks process their payments differently we can't guarantee when this money will be credited to the recipient's account.
Some utility bills and credit card payments may still take a few days to reach your individual account, so it's worth checking with each company concerned how quickly they will process your payment once they receive it. For urgent payments such as house deposits you may wish to consider using the CHAPS service which is a guaranteed same day service.
Questions and Answers - the Faster Payments Service
- What is the Faster Payments Service?
- When will the Faster Payments Service start to send standing orders?
- How do I make a Faster Payment?
- Will all payments be sent by the Faster Payments Service?
- Which banks will be rolling out the Faster Payments Service?
- Why aren't all banks and building societies involved from launch?
- Do I have a choice as to whether I use this service for payments?
- Will this new service replace the existing payment methods of BACS and CHAPS?
- Will there be any people who are unable to make or receive payments through the Faster Payments Service?
- What happens if I use the incorrect account details or sort code when I make a Faster Payment?
- Will there be a limit on the amount of money I can send by the Faster Payments Service?
- What is the benefit to me of the Faster Payments Service?
- How will I know that the payment has reached the recipient on the same day?
- What happens if I send a payment to a bank or an account that does not accept Faster Payments? Will I be told straightway?
- Why is the Faster Payment Service not available to me when I pay in branch?
- What about regular payments I receive from other people, will they be faster?
- Will the date I receive my salary change?
- Can I pay my utility bills or credit cards using Faster Payments?
- Can I make a Faster Payment from or to my Lloyds TSB Savings account?
Q1. What is the Faster Payments Service?
From the 27 May we are rolling out the Faster Payments Service. Faster Payments will let you make single, immediate, sterling, one- off payments over the phone or online between participating banks. And you'll be able to make the payments all day, every day. In most cases this cleared money will be available at the recipient's bank almost immediately, but it can sometimes take a couple of hours to show on the recipient's account.
The Faster Payments Service will also begin to speed up standing order payments from early June (see Q2). These will then be sent and received on the same day, on working days only.
Q2. When will the Faster Payments Service start to send standing orders?
All banks have agreed that it is necessary to phase the rollout of Faster Payments. Lloyds TSB will begin sending sterling standing orders using the Faster Payment Service up to the value of £5 in June, £10 in July and then to our maximum limit in August.
Q3. How do I make a Faster Payment?
You make a Faster Payment using our Offshore Sterling Internet Banking and Telephone Banking services. You'll need to be registered to use these services, and the bank account that you are sending the money to will need to be able to accept Faster Payments.
For Offshore Sterling Internet Banking payments, simply log on and once you're in your current account pages, visit our 'Transfers and payments' section - you'll then be given the option of making the payment as soon as possible, or as a future dated payment. If you select the 'as soon as possible' option the payment will, where possible, be sent as a Faster Payment.
To make a Faster Payment over the phone, call us on 08457 449900 with both sets of bank account details handy, and we'll do the rest.
During the transaction, we will receive confirmation of whether a payment has been accepted or rejected by the recipient's bank or building society at the time the payment is made. We will also be told how quickly the credit will be made. You will probably still be on the phone or online when we receive the confirmation and we will pass this on to you immediately.
Q4. Will all payments be sent by the Faster Payments Service?
The majority of UK Sterling payments made through Offshore Sterling Internet Banking and Offshore PhoneBank will be sent using the Faster Payments Service.
However, some smaller banks and building societies will be joining the Faster Payments Service after it launches later on in the year. They will continue to use the current three day BACS system for the time being. Large payments and some payments into certain accounts, like credit cards, utility bills or savings accounts will also continue to be sent as they were previously.
Q5. Which banks will be rolling out the Faster Payments Service?
Most major UK high street banks and building societies will be using the Faster Payments Service. Together, they handle the majority of all electronic payments made in the UK today.
The founder member banks launching Faster Payments from 27 May are: Lloyds TSB, Abbey, Alliance & Leicester, Barclays, Citibank, Co-operative Bank, Clydesdale and Yorkshire Banks (National Australia Group) HBOS, HSBC, Nationwide Building Society, Northern Bank (Danske Bank), Northern Rock, Royal Bank of Scotland (including Natwest and Ulster Bank).
Most of these banks are rolling out the new service gradually across their systems and accounts, so not all payments can be guaranteed to be made faster. But, if we can send your payment faster we will.
Q6. Why aren't all banks and building societies involved from launch?
The decision to join the new service has been one for each individual bank or building society. Most major banks and building societies are using the service from when it launches and these account for the majority of all electronic payments made today. After the service launches, it is likely that a number of other smaller banks and building societies will start to join.
Q7. Do I have a choice as to whether I use this service for payments?
No, when using Offshore Sterling Internet Banking or Offshore PhoneBank we'll always send the payment by the quickest route available for the specific payment.
Q8. Will this new service replace the existing payment methods of BACS and CHAPS?
No. This new service is for day to day payments, but BACS will continue for the foreseeable future. It will handle payments that can't be sent through the Faster Payments Service. CHAPS will also remain unchanged and should be used for important, higher value payments as it is now, such as paying for house deposits.
Q9. Will there be any people who are unable to make or receive payments through the Faster Payments Service?
Yes, it will always depend on whether that person's bank or building society is part of the Faster Payments Service. This may change over time as more banks and building societies become involved. In addition, some accounts such as credit cards, utility bills, savings accounts and accounts on sort code 301411 may not be able to send or receive Faster Payments.
Q10. What happens if I use the incorrect account details or sort code when I make a Faster Payment?
Sort codes and account numbers are checked to make sure that no digits have been given incorrectly. However, it is possible that in a small number of cases an incorrect but valid sort code and/or account could be entered. This is why it is vital that you make sure you use the correct recipient's details – otherwise the payment won't be processed to the correct recipient.
If you make an incorrect Offshore Sterling Internet or Offshore PhoneBank payment, then we will help you to try to recover the money. But, as this will be after the payment has been sent to the recipient, we can't guarantee the recovery of the money.
Q11. Will there be a limit on the amount of money I can send by the Faster Payments Service?
Maximum value limits are being set for a variety of reasons. The limits depend on each bank or building society and may be changed over time. The limit may differ for each type of payment, so, for instance there may be different limits for standing orders and for one-off payments. Payments over the relevant limit must be sent by some other means.
Q12. What is the benefit to me of the Faster Payments Service?
This new service will give you more control of your money, allowing you to move your money much quicker between participating UK banks and building societies. Money that is paid to you and payments that you make as Faster Payments will arrive into the recipient's account almost straightaway in most cases.
Q13. How will I know that the payment has reached the recipient on the same day?
We will receive confirmation of whether a payment has been accepted or rejected by the recipient's bank or building society at the time the payment is made. We will also be told when the credit will be made to the recipient's bank account. You will probably still be on the phone or online when we receive this confirmation and we will pass it on to you immediately.
Q14. What happens if I send a payment to a bank or an account that does not accept Faster Payments? Will I be told straightway?
If the payment is being sent to a bank or an account that cannot accept Faster Payments then you will be advised that the payment instruction has been received successfully by us, and that it will take three to four days to reach the recipient.
Q15. Why is the Faster Payment Service not available to me when I pay in branch?
The Faster Payments Service is available for electronic payments which are currently made through Offshore Sterling Internet and Offshore PhoneBank. There are no plans to offer this service through branches.
Q16. What about regular payments I receive from other people, will they be faster?
Yes - if the sending bank is part of the Faster Payments Service and can send Faster Payments.
Q17. Will the date I receive my salary change?
No, the time that salaries are received should not be affected by the Faster Payments Service. Most employers will continue to use the existing payment systems to pay their employees. Your employer should be able to advise you if any changes are made on when your salary will be received.
Q18. Can I pay my utility bills or credit cards using Faster Payments?
You may be able to. It will depend upon whether or not the recipient's account is able to accept Faster Payments. In some cases the payment will still take a couple of days to credit your individual card or household bill account. You will still need to make sure you allow enough time for the payment to arrive and we recommend checking with the recipient in each case to ensure that your payment will arrive on time.
Lloyds TSB Credit Cards cannot accept Faster Payments. To pay your Lloyds TSB Credit Cards as quickly as possible - you can pay cash or a Lloyds TSB cheque into one of our branches before 4pm on a working day and it will be credited on the same day.
Q19. Can I make a Faster Payment from or to my Lloyds TSB Savings account?
Faster Payments can be received by Lloyds TSB Savings accounts, but you can't make Faster Payments from them.