BACS, Faster Payments and CHAPS
Three ways to send money from one bank account to another. Learn how fast each one is, what it costs and when to use it.
In this room: 3 tasks, 10 questions
- Three kinds of bank transfer4 questions
- Counting the three days of BACS3 questions
- What a transfer costs3 questions
A bank transfer moves money straight from one bank account to another. There are three main kinds in the UK.
- BACS
- takes three working days. It is cheap, and is used for wages and for paying many suppliers at once
- Faster Payments
- usually arrives within minutes, at any hour on any day. Each bank sets a limit on the amount
- CHAPS
- arrives the same working day, with no upper limit. The bank charges a fee for each one
Answer the questions below
3 more questions follow in this task.
A BACS payment takes three working days from start to finish.
- Day 1: the payment file is sent
- Day 2: it is processed
- Day 3: the money reaches the other account
Only working days count. Saturdays, Sundays and bank holidays do not.
Answer the questions below
2 more questions follow in this task.
Banks charge a business for its payments. Fernhill's bank charges £0.35 for each BACS payment and £25 for each CHAPS payment here.
In the books, a transfer to a supplier does two things. The amount owed to the supplier goes down, and so does the bank balance.
Answer the questions below
2 more questions follow in this task.