Business should feel the benefits of the new Faster Payments scheme, say
financial analysts.
The new scheme, which went live on May 27th, is the new low-cost, quick electronic payment method from the banking industry.
Analysts from Deloitte say that the new system will reduce charges some businesses face. The only previous way to make same-day payments was through CHAPS, which charged businesses if payments were made of less than £10,000.
However, Stephen Ley, a partner in Deloitte's risk services, has warned about the potential for fraud under the new Faster Payments Scheme.
He said: "The Faster Payment system will be a challenge for banks which could lead to increased risk of fraud as it will be harder for banks to detect and block fraud in the time window available.
"The existing process relies, in part, on banks having sufficient time to detect suspicious transactions."
According to Apacs, CHAPS was used by organisations that needed an urgent same-day guaranteed payment and transactions were unchangeable.
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