UK Faster Payments

1
UK Faster Payments

• Matthew Croxford
• Product Management Team

2
Agenda

• UK Faster Payments scheme - a brief history
• Faster Payments overview
• Business reasons to use Faster Payments
• Eiger Systems products for Faster Payments

3
A brief history

• The Cruickshank report (2000) - no easy, low-cost
  way to quickly transfer money
• OFT Payments Task Force - the banking industry
  must
• provide a faster (same day) electronic payments
  capability
• eliminate the taking of Float
• To be introduced by the end of 2007

4
Overview of faster payments

• Completely new scheme separate to BACS and CHAPS
• Will be managed by the CHAPS Clearing company
• Operated by Immediate Payments Ltd (part of
  VocaLink)
• Faster Payments is a Sterling only system
• Faster Payments is for Credits only
• Available 24 x 7 x 365
• Supports 3 payment types
• 13 member banks
• Same day payment if beneficiary is a direct
  member
• Go live now expected to be May 2008

5
Direct Corporate Access (DCA)

• Expected mid 2008
• Allows submission of bulk payment files by
  corporates
• Managed by BACS on behalf of CHAPS
• Operated by VocaLink
• DCA will use the BACSTEL-IP infrastructure
• File formats will be Standard 18
• Same smartcards and HSM credentials as BACSTEL-IP
• Availability 0600 to 1400 on bank working days
• Warehousing of payments is not supported
• Payments will be irrevocable (no recalls)
• 10,000 limit per transaction

6
How much will Faster Payments cost?

• Cost will be set by your bank
• CHAPS - typically pounds (1 and 20)
• BACS - typically pence (1p and 5p )
• Faster Payments is expected to be between a
  BACS payment and a pound (5p and 1)

7
Making Faster Payments

• Current usage of payments
• Contingency payment mechanism
• Weekly payroll
• One-off payments
• Service differentiation
• immediate loans
• immediate settlement of insurance claims
• immediate winnings
• immediate refunds
• Risk reduction
• Process improvements
• Optimisation of working capital

8
Solutions

• BANK WIZARD validation of Faster Payments
  account details
• EigerPAY Gateway payment submission software
  for Faster Payments

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Where our solutions fit
BusinessApplication
BusinessApplication
ManagementInformation
BusinessApplication
10
Conclusion

• There are sound business reasons to use Faster
  Payments
• however the benefits dont come without some
  cost
• Most of the issues can easily be resolved
• BANK WIZARD for data validation
• EigerPAY Gateway for Faster Payments submission

11
Faster payments Webinar

• Thank you
• Feel free to email me at
• matthew.croxford_at_eiger.co.uk