How do bank payments actually work?


(Ed) #1

After last month’s post on card payments, we thought we’d follow-up with a post on bank-to-bank payments.

The UK has one of the world’s most advanced automated clearing houses: the Faster Payments Scheme (FPS). Launched in 2008, it’s a real-time …

http://www.getmondo.co.uk/blog/2016/01/20/how-do-bank-payments-work/


(Colin Robinson) #3

There are still major banks who don’t process Faster Payments at all over the weekend!

Such as? :innocent:


(Majdi Mgaidia) #4

Starling joined FPS:
https://www.starlingbank.com/the-faster-the-better/


(Nigel Laverick) #5

I’ve never really considered the internal workings of banks so these are fascinating articles. Does Mondo have any intentions of linking direct to FPS or would you perhaps try to run a system based on PAYM if that could be done? It always used to frustrate the hell out of me the old cheque system when your money would take days or weeks to arrive :rage:


#6

I don’t know if :mondo: would connect directly to FPS but ya, you would be able to make FPS payments using :mondo: once they become a fully licensed bank.


(Rika Raybould) #7

FPS is on the roadmap. Direct connection depends on your definition of direct. Considering the regulator just made the big banks sell VocaLink and it went to MasterCard, anything could change there.

Worth noting also that PayM is mostly just a central place to match phone numbers to account numbers across different banks, the actual payment happens over another method and while I believe it’s left undefined for future proofing, FPS is currently the strongly preferred method.


(Richard) #8

This is an old article but any plans to increase the transfer limit of £10,000 closer to the FPS limit of £250,000?