Faster payments go live

The new Faster Payments Service has been launched today by the UK payment association APACS.

The new system allows transactions of up to £10,000 to be made via phone and the internet, at any time of day or night, with the promise that they will clear in a matter of hours rather than days.

From 6 June, the system will also enable standing orders of up to £100,000 to clear on the same day that they leave the payer's account.

The service will be phased in by banks and building societies over the months to come. Banking customers can check whether their bank has implemented it by entering their sort code on the APACS website.

The scheme has been widely welcomed, although some banking experts have warned that there could be problems.

Stephen Ley, of financial specialists Deloitte, said: "The Faster Payment system will be a challenge for banks which could lead to increased risk of fraud as it will be harder for banks to detect and block fraud in the time window available. The existing process relies, in part, on banks having sufficient time to detect suspicious transactions."