(24 May 2005 – UK) UK banks will speed up the processing of online and telephone funds transfers between banks following pressure from consumers and regulators.The banks have pledged to clear funds between banks either on the same day the transfer is made or the following day at the latest if requested to do so by customers via the internet or telephone. Direct debit payments will also be processed on the same day.
Banks in the UK, like in Australia, currently require up to three days to clear funds between banks. Cheque clearance can take up to five days.
The British banks were cajoled into doing something after an investigation from the Office of Fair Trading (the UK equivalent of the Australian Competition and Consumer Commission) upheld complaints from consumers.
But the move won’t happen overnight. Payments body APACS will work with the banks to move to quicker payment cycles. This will involve a six month consultation process with implementation to occur within two years.
APACS said the new service would impact internet, telephone and standing order payments which accounted for seven percent of all automated payments in 2004.