Ask the Experts

Is there something that you need to know about the payments industry but just can't find the answer anywhere? Our experts have already helped lots of peoples with questions they didn't know the answer to. There are a wide range of questions and answers below, but if you can't find your answer there, or else where in our knowledge centre then ask us your own question using the form on the right and the answer will be posted back on the website for you.

Faster Payments questions

1. If I upgrade to the new Bacs Same Day service, does it mean that I won’t be able to use the present Bacs 3-Day service again?



2. Will Albany be integrating our SAGE Payroll software so that we can use it for the traditional Bacs service as well as the new Faster Payment service?



3. We currently make about 14 CHAPS payments a month for less than £10,000 a time. Its such a hassle having to fill in paper forms to take along to our local branch, unlike our Bacs payments which are all generated from our accountancy software, and then sent electronically. With Faster Payments will this mean that we can’t generate the payments from our accountancy software.



4. What do you think will be the most important benefits of Faster Payments to our organisation?



5. Aren’t CHAPS lower-value payments mainly used just for Supplier Payments?



6. Given the links with our accountancy and payroll packages, we would prefer to make our Faster Payments through our organisation’s Bacstel-IP solution. Will this be possible?



7. With the launch date fast approaching for the faster payments scheme can you provide me with details of software you have to deal with this please? We already run ALBACSbureau enterprise but are very interested in anything you have which will allow us to process payments under this scheme. There is mention of a combined Bacs & faster payments application on your website – is this available yet?



8. Will Faster Payments be expensive compared to the three-day Bacs payments?



9. Why can I make Faster Payments from my personal bank account but my not my business account?



10. Why do we choose the "Faster Payments Service" over CHAPS?

SEPA questions

1. Can you help me which UK Bank makes SEPA transfer because I asked to my bank and they said they can`t help me.



2. When can we expect to see European Direct Debits becoming available?



3. What’s the biggest attraction to our business for making SEPA Credit Transfers from 2008?



4. We make between 300 & 600 payments in euros per week to recipients throughout Europe. Will SEPA help and what is the timetable for implementation?



5. We would like to start making SEPA Credit Transfers from our UK bank account to our subsidiaries in Europe. When will be able to start doing this, and how should we be preparing?



6. Why is my Bank now forcing me to pay their charges for making Euro payments to Europe when for many years my benificiaries have agreed to pay all transfer charges. My Bank tells me it is a legal requirement of SEPA and nothing to do with them, is this correct?



7. Do you have any software which will allow us to submit SEPA direct credit transfers on behalf of clients?



8. Can an Irish bank setup a Euro merchant account for a company registered in England?



9. To your knowledge are there any UK banks offering Euro accounts that comply to this legislation on SEPA transfers if it exists?



10. Are SEPA tariffs regulated by the EU and if so is there a maximum charge that UK banks are not supposed to exceed when sending from UK Euro accounts?

Faster Payments answers

If I upgrade to the new Bacs Same Day service, does it mean that I won’t be able to use the present Bacs 3-Day service again?
The good news is that you will have the option to use both services, and Albany’s software will help decide which is the best route for you.
Will Albany be integrating our SAGE Payroll software so that we can use it for the traditional Bacs service as well as the new Faster Payment service? Yes, we will be able to integrate any Accountancy and Payroll software into the combined Bacs approved software which we will be developing.

We currently make about 14 CHAPS payments a month for less than £10,000 a time. Its such a hassle having to fill in paper forms to take along to our local branch, unlike our Bacs payments which are all generated from our accountancy software, and then sent electronically. With Faster Payments will this mean that we can’t generate the payments from our accountancy software.
The good news is that under the Faster Payment service for same day payments of less than £10,000, you will be able to submit these via Bacs in a similar integrated electronic way to that which you now do for your 3-Day Bacs payments. Also, the Bank charges for these are likely to be nearer £1 rather than the £30 currently charged for each of your CHAPS payments.
What do you think will be the most important benefits of Faster Payments to our organisation?
Our own research results indicate that businesses are looking to make cost savings compared to CHAPS (32%), offer improved services to customers and staff (30%) and the attraction of the efficiency of the Bacs process for making payments compared to CHAPS (25%).
Aren’t CHAPS lower-value payments mainly used just for Supplier Payments?
Surprisingly not. Feedback from a cross-section of our customers, is telling us that 51% of CHAPS payments for less than £10,000 are in respect of payroll items (mainly for missed or late payments, and also expenses), with 27% in respect of Supplier Payments.
Given the links with our accountancy and payroll packages, we would prefer to make our Faster Payments through our organisation’s Bacstel-IP solution. Will this be possible?
Market research indicated that 90% of companies surveyed (who had a view) also preferred a fully integrated solution. As such, Albany will be providing one solution which will allow you to make both the usual 3-day Bacs payments via Bacstel-IP as well as the Same Day Faster Payments via the Secure-IP network.
With the launch date fast approaching for the faster payments scheme can you provide me with details of software you have to deal with this please? We already run ALBACSbureau enterprise but are very interested in anything you have which will allow us to process payments under this scheme. There is mention of a combined Bacs & faster payments application on your website – is this available yet?
While Faster Payments for consumers will be launched at the end of May 2008, the software for Corporates and Bureaux like yourselves has yet to be developed. All Software developers are awaiting the Technical Specification, which is due shortly, and will then develop, test and pilot the software ready for launch in Q2-2009.
Will Faster Payments be expensive compared to the three-day Bacs payments?
It depends on your relationship with your bank and the overall basis of your bank charges. The feeling is that initially the bank charges for Direct Corporate Access bulk Direct Credits through Faster Payments is likely to be higher than the three-day Bacs payments, but at least a tenth of the price of CHAPS payments. But some customers who may decide to send all their payroll (monthly, weekly, over-time, expenses etc.) through Faster Payments might well be able to negotiate a similar charge as their current Bacs charges.

Why can I make Faster Payments from my personal bank account but my not my business account?
It depends on who you bank with and if you’ve got a business internet bank account with them. At this stage Barclays, RBS Group and HSBC business customers with appropriate internet bank accounts are able to do this. The other banks are likely to roll out their own services later this year.
Why do we choose the "Faster Payments Service" over CHAPS?
The key benefits are price and automated processes. CHAPS charges can vary between £10 and £30 per transaction. The most expensive "Faster Payment Item" is £3, but some are as cheap as 35p per item.. The FPS process is electronic and automated, whereas many smaller businesses have to rely on filling in forms by hand received from their local branch for each CHAPS transaction. With Direct Corporate Access (currently provided by Barclays bank) one could submit a large file of payments (up to 1.2 million tranacstions) into the system rather than having to key one CHAPS item at a time. While the CHAPS window close at about 3pm each banking business day, Single Immediate Payments can be sent via the FPS on a 24/7 basis, and (as from mid-March 2010) files of FPS payments can be sent from 3am to 11pm Monday's to Friday. The only downside at present is that the transaction limit for FPS is currently £10,000 per transaction, while there is no upper limit on CHAPS transactions. This limit is planned to be increased to £20,000 during the year, and could reach £100,000 by the end of 2010.

SEPA answers

Can you help me which UK Bank makes SEPA transfer because I asked to my bank and they said they can`t help me.
According to the European Payments Council (as at 13 February 2009) the following banks with offices in the UK, are registered SEPA Credit Transfer Participants:-

• Allied Irish Bank (GB)
• Alpha Bank London
• Bank of America
• Bank of Scotland
• Bank of Tokyo-Mitsubishi
• Barclays Bank
• Citibank International
• Citibank
• Clydesdale Bank
• Credit Suisse
• Europe Arab Bank
• HSBC Bank
• Ivobank
• JP Morgan Chase Bank
• Lloyds TSB Bank
• Mizuho Corporate Bank
• Nat West Bank
• Northern Bank
• Northern Trust Company
• Royal Bank of Scotland
• Sumitomo Mitsui Banking Corporation Europe Ltd
• Ulster Bank
• Wachovia Bank
• Yorkshire Bank

The key points to keep in mind are that:-

• Many banks don't call them SEPA Credit Transfers, e.g they might be called Euro Transfers or non-urgent cross-border payments etc.
• many local bank branches may not be fully aware of the product, so it is best to contact a head office number, or search their websites

Missing names include:-

• Abbey (but they might go via their parent bank - Banco de Santander)
• Alliance & Leicester (but they might go via their parent bank - Banco de Santander)
• Bank of Ireland
• The Co-operative Bank
• Nationwide

What’s the biggest attraction to our business for making SEPA Credit Transfers from 2008?
Cheaper bank charges for making cross-border payments to the Euro currency countries in Europe.
We make between 300 & 600 payments in euros per week to recipients throughout Europe. Will SEPA help and what is the timetable for implementation? If you are making up to 5,000 Euro payments a month, the key benefits to your business will include greatly reduced bank charges for both you and the recipients, certainty that the funds will be received within 3 days of being sent, being able to format the payments electronically and the ability to send more reference information with your payment. The SEPA Credit Transfer service went "live" on the 28 January 2008, and each bank in the UK will decide on how to use its own service, so speak to them shortly.

In the meantime, if you don't already check the BICs and IBANs for your recipients, you may wish to enquire about Albany's ALBANYverify solution.
We would like to start making SEPA Credit Transfers from our UK bank account to our subsidiaries in Europe. When will be able to start doing this, and how should we be preparing?
The SEPA Credit Transfer service was available from 28 January 2008. Ask your UK bank what they are doing, then speak to us about how we can support you with BIC and IBAN checking, and generating and formatting the SEPA Credit Transfer payment from your accountancy software ready for submission to your bank.
Why is my Bank now forcing me to pay their charges for making Euro payments to Europe when for many years my benificiaries have agreed to pay all transfer charges. My Bank tells me it is a legal requirement of SEPA and nothing to do with them, is this correct?
The introduction of SEPA Credit Transfers has resulted in each bank following set standards across the whole of Europe for Euro payments. In the past some banks charged their customers upfront to send the payments, while some charged the beneficiary and many charged both sets of customers (those sending and those receiving). The decision was taken that the new Scheme Rules would work to one set standard for bank charges, and only the sender of the payment would, in future, pay them. One solution, would be for you to agree with your beneficiary to receive their payments net of your upfront bank charges in future. Additionally, you should be ensuring that your bank provides the new cheaper charges tariff for SEPA Credit Transfers. You might wish to compare bank charges. We understand, for example, that the Bank of Ireland is very competitive.
Do you have any software which will allow us to submit SEPA direct credit transfers on behalf of clients? Not yet. It might be a couple of years before this can be done. We suggest you talk to your bankers as each UK bank has a different way of handling SEPA Credit Transfers. When can we expect to see European Direct Debits becoming available?
Once the Payment Services Directive becomes law in all the EU states on 1 November 2009, then many of the major European / UK Banks will be offering products and services to be able to handle both ordinary SEPA Direct Debits and also SEPS Business-to-Business Direct Debits.
Can an Irish bank setup a Euro merchant account for a company registered in England? All the major Irish Banks can maintain accounts for UK registered companies who might wish to maintain accounts with them in Euro's. They will also maintain accounts in Sterling, US Dollars and all the major currencies
To your knowledge are there any UK banks offering Euro accounts that comply to this legislation on SEPA transfers if it exists?
If you're looking for the cheapest SEPA Credit Transfers from UK Based banks, then look at the likes of Bank of Ireland and Allied Irish Banks (given that the Republic of Ireland currency is the Euro)where SEPA Credit Transfer bank charges are nearer 10 euro-cents (and some internet bank payments are free).

Are SEPA tariffs regulated by the EU and if so is there a maximum charge that UK banks are not supposed to exceed when sending from UK Euro accounts?
Basically, cross-border SEPA Credit Transfers should be charged at the same rate as domestic internal transfers in Euros. In Europe this means that all SEPA Credit Transfers in Euro are at about the 10 euro cents charge rate rather than the previous 10 Euro's bank charge rate. Under these rules, the main UK banks were still allowed to charge for SEPA Credit Transfers at the lowest rate they were charging for Euro payments, and these were high. For example Barclays used to charge at the lowest rate for cross-border Euro payments from a Euro account at £10, so they launched SEPA Credit Transfers at £10 per transfer. Barclays latest charge is about £5 per transfer (and not the 20p many thought it would become). Charges for most of the major UK banks are nearer the £5 level for their SEPA Credit Transfers.

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