In the United Kingdom, there are three types of local payments in pound sterling (GBP), all of which utilize 8-digit account numbers (IBAN equivalent) and 6-digit sort codes (BIC equivalent). The payment types are:
- Faster Payments (FPS) – fastest form of local British payment, available since 2008 and operated by Pay UK. They are usually settled immediately between British banks but delays of up to 2 hours can happen. There is no minimum amount and the maximum amount that can be sent is 1 million GBP, but individual banks often set a lower maximum limit themselves.
- CHAPS – local British payments operated by the Clearing House Automated Payment System since 1984. They are usually settled on the same working day between British banks but can delayed and be sent the next working day. While there is no minimum amount for a CHAPS transfer, it usually is reserved for high-value transfers.
- BACS (Bankers’ Automated Clearing System) – local British payment type, standing for Banker’s Automated Clearing Services, and operated by Pay UK. They are most commonly used for settling Direct Debit and take multiple working days to be settled.
Valyuz uses the services of correspondent banks to process local British payments. The account number and sort code issued to you can receive Faster Payments, but not CHAPS and BACS. If BACS is needed, please reach out to Customer Support or your dedicated Account Manager to discuss availability.
Due to the usage of correspondent banks, the processing times of Faster Payments are longer than if they were performed by a British bank directly. Thus Valyuz clients should expect Faster Payments to be settled in a similar time as a SWIFT payment.