Bacs, CHAPS & Faster Payments: What’s the difference?

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Bacs, CHAPS Faster Payments Whats the
difference?
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Three popular UK Payment methods
Most forms of UK business payments are now
covered by Bacs, CHAPS or Faster Payments.

• Bacs payments - take 3 banking days to process,
  but cost just a few pence to make.
• CHAPS payments - faster than Bacs, but costs more
  (usually between 25- 30).
• Faster Payments - quicker than Bacs, cheaper
  than CHAPS.

This presentation will give you an overview of
each payment method including what they are used
for, how to use them, and the security provided
by each one.
www.accesspay.com
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Bacs Payments
Bacs (Bankers Automated Clearing Services) was
launched in 1968.
Bacs is the central payment system used to
process several different types of electronic
payments. The vast majority of Bacs payments
are Direct Debits or Direct Credits. Bacs
payments take a minimum of 3 banking days to
process, and cost just a few pence to make.
What can I use Bacs payments for?
Bacs payments are used for Direct Debits and
regular payments from businesses such as wages
and pensions.
If a payment is time-critical, Bacs payments may
not be the best option. Faster Payments and CHAPS
are quicker.
www.accesspay.com
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Bacs Payments
How do I make a Bacs payment?
Direct Debits are automatically directed through
Bacs - so the customer doesnt need to do
anything.
If a customer wants to transfer money from an
account that doesnt allow Faster Payments (using
phone or internet banking), the payment will
automatically be processed via Bacs.

• Security

Multi-layered security is built into Bacs payment
processing. Only approved businesses are allowed
to collect Direct Debits. If anything goes wrong
customers can rely on The Direct Debit Guarantee
to get an immediate refund.
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CHAPS Payments
CHAPS (which stands for Clearing House
Automated Payment System, but is nowadays only
referred to by its acronym) was launched in 1984.
CHAPS is a same-day automated payment system for
processing payments made within the UK (sterling
only).
What can I use CHAPS payments for?
The most common use for CHAPS is buying property.
Solicitors use CHAPS payments to transfer the
purchase price of a house between the bank
accounts of those involved. CHAPS can also be
used by individuals buying or selling a
high-value items such as cars, when a secure
same-day guaranteed payment is required.

• CHAPS payments are faster than Bacs, reaching the
  recipients bank account the same working day.
• CHAPS payments cost more than Bacs - usually
  between 25- 30 per transaction).

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CHAPS Payments
How do I make a CHAPS Payment?

• To make a CHAPS payment, customers will normally
  need to visit a branch of your bank, with
  appropriate identification.
• Before making a CHAPS payment, it is good
  practice to check the banks Faster Payments
  limit, as this will be a cheaper option.

• Security

CHAPS users get a refund from their bank if they
are an innocent victim of fraud. If a user gives
incorrect information and the payment goes
astray, their bank must make reasonable efforts
to trace the transaction but has no liability for
getting the funds back.
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Faster Payments
Faster Payments was launched in 2008.
What can I use Faster Payments for?

• Faster Payments cost only slightly more than a
  Bacs payment, and are much faster taking hours
  rather than days.
• The Faster Payments Service allows customers to
  make electronic payments seven days a week, 24
  hours a day.

Faster Payments are used extensively by UK
businesses and the general public alike

• Businesses use Faster Payments for payroll
  processing, supplier payments, expenses and last
  minute business-to-business payments.
• The general public use Faster Payments to pay
  bills and standing orders, and to make online
  transfers.

The Faster Payments Service satisfies the
requirement that all internet, phone and standing
order payments must be processed by the end of
the next business day.
www.accesspay.com
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Faster Payments
How do I make a Faster Payment?

• Faster Payments are typically made by phone or
  internet banking.
• The amount of money that can be transferred using
  Faster Payments is limited to between 10,000 and
  100,000, depending on the bank or building
  society.
• Sort codes able to receive Bacs payments can also
  receive Faster Payments. The Payments Council
  publishes a handy Sort Code Checker that provides
  this information.

• Security

Card readers and secure devices are sometimes
used in addition to normal internet banking login
details. Some banks require the customer to
enter additional details when making online
payments. As with CHAPS payments, entering
details incorrectly can lead to money ending up
in a different account and being difficult to
retrieve.
www.accesspay.com
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AccessPays Payment and Cash Management Solutions
give businesses like yours access to all the
features and benefits of CHAPS, Bacs and Faster
Payments.
Any Questions?
AccessPayCEC Winchester - Crawford
Place,259-269 Old Marylebone Rd,LondonNW1 5RA
Tel [phone] Email
info_at_accesspay.com Website www.accesspay.com
www.accesspay.com