Finance glossary
Faster Payments
Also known as: FPS, Faster Payments Service
In simple terms
Faster Payments is the system behind near-instant bank transfers in the UK. When you send money to a friend or pay a bill from your banking app and it arrives in seconds, that is Faster Payments — usually free.
On this page
What does Faster Payments mean?
The Faster Payments Service (FPS) is a UK payment system, run by Pay.UK, that moves money between bank accounts almost instantly, around the clock. It powers most online and mobile banking transfers, one-off payments and many standing orders.
It is the everyday route for sending money to another person or paying a bill quickly, and is normally free for personal customers.
How Faster Payments works
You enter the recipient’s sort code and account number (and, thanks to Confirmation of Payee, their name is checked against the account) and the money typically arrives within seconds, though it can occasionally take up to a couple of hours. Payments run 24 hours a day, including weekends.
There is a limit on how much can be sent by Faster Payments — the scheme allows large amounts, but individual banks set their own daily caps. For sums above your bank’s limit, or for guaranteed same-day high-value transfers, CHAPS is used instead.
How could this affect me?
Faster Payments makes moving money quick and convenient, but that speed cuts both ways: because payments arrive almost instantly, scammers try to trick people into sending money that is hard to recover. Confirmation of Payee helps by warning you if the name does not match.
If you are tricked into authorising a payment to a fraudster (an “authorised push payment” scam), mandatory reimbursement rules now require the sending and receiving banks to refund most victims, subject to limits and conditions.
Things to watch out for
- Payments are near-instant and hard to reverse — double-check details before sending.
- Heed Confirmation of Payee warnings if the account name does not match.
- Your bank may set a daily limit lower than the scheme maximum.
- Scammers exploit the speed — never rush a transfer because someone is pressuring you.
Know your rights
- Under the mandatory reimbursement rules for authorised push payment (APP) scams, banks must reimburse most victims of Faster Payments fraud, subject to limits and conditions.
- Confirmation of Payee checks the name on the account before you send, helping prevent mistaken or fraudulent payments.
- If your bank refuses a reimbursement you believe you are owed, you can complain and escalate to the Financial Ombudsman Service.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- Pay.UK, Faster Payments System (opens in a new tab). Accessed 22 Aug 2026.
- FCA, Authorised push payment (APP) fraud reimbursement (opens in a new tab). Accessed 22 Aug 2026.