FPS ups DCA transaction limit to £100k
By Will Cain
07 September 2010
The UK’s Faster Payments Direct Corporate
Access (DCA) transaction value limit has increased from £10,000 to
£100,000 ($15,300 to $153,000) per transaction.
The Faster Payments Service (FPS) settles
transactions between bank accounts in real time and is seen as one
of the most likely replacement for corporate cheque payments, which
are due to be phased out by 2018.
The FPS corporate service was launched in July
last year, with an initial limit of £10,000. The new $100,000
limit is unlikely to persuade them to “flock to the service”,
according to Norman Taylor, product manager at Experian
Payments. It will, however, position FPS well in the
battle to replace cheques.
“While increasing the transaction value limit
of Faster Payments DCA is unlikely to have an enormous impact on
volumes, it will certainly help to broaden the scope of the channel
for corporates which in turn should position it as a favourite in
the race to replace the humble cheque,” he said.
Faster Payments was launched in May 2008.
Twelve banks and one building society, representing around 95
percent payments traffic, signed up as members of the service. The
scheme reduced the amount of time needed to transfer funds between
bank accounts from three working days to near-real time settlement.
The service is free for consumers, while corporates pay a small
fee.
Related story: UK Faster Payments Service enters corporate
market