Faster Payments is a UK system that moves money between bank accounts almost instantly, usually within seconds and around the clock. It is used for most online and mobile transfers, subject to limits each bank sets for its customers.
In one line: Faster Payments sends money between UK accounts in seconds, any time, within limits each bank sets.
How Faster Payments works
When a transfer is made through online or mobile banking, Faster Payments routes it directly between the two accounts, typically completing within seconds at any hour including weekends.
Sending 250 GBP to a friend arrives almost immediately. The scheme supports payments up to 1 million GBP, but individual banks often set lower per-transaction or daily limits for their own customers.
Standing orders are commonly carried over Faster Payments too, so a fixed monthly transfer can settle on the day it is due rather than after a multi-day cycle.
Faster Payments vs CHAPS
Faster Payments is near-instant and free but limited in size by each bank. CHAPS has no upper limit and guarantees same-day settlement, but usually charges a fee.
Where a transfer is below the bank's limit, Faster Payments is normally used; larger amounts such as a property deposit may need CHAPS instead.
Primary source: Pay.UK: Faster Payment System