Posted September 10, 2010 by Simon in News

Faster Payments increases limits from £10k to £100k

The Faster Payments Scheme have announced they are to raise the maximum value threshold for Internet or phone payments from £10k to £100k.

This is hopefully good news for online banking users, as this enhanced facility will allow banks to offer higher amounts going through the Faster Payments service.  Understandably, this demand has come from some of their corporate customers, and it is most likely that they will benefit first over the coming months. The threshold for standing orders remains unchanged at £100,000.

Although this change came into effect on Monday 6th September, individual banks and building societies will continue to set their own value limits for their corporate and consumer customers. If you need to see how much you can transfer through your own own bank or building society, you can check here or contact your bank directly

We’re hoping that the banks and building societies will follow and increase their threshold limits, as it provides another good benefit for attracting their customers to use their online banking systems.  This is more the case in recent months, as the banking industries continue to reduce their headcount.

The Faster Payments system has been of huge value to the online banking community since it’s introduction in May 2008, thanks to its almost instantaneous bank transfers and bill payments.

The service has seen an impressive takeup by banks and building societies, going from the original 13 founding members to over 40 in just a couple of years.  Even though 91{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1} of Faster Payments are for amounts under £1,000, 82{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1} of all internet and phone payments are now processed via Faster Payments and 57{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1} of all standing orders.