METHODS TO TRANSFER MONEY

To transfer big money from one account to another, within the UK. There's no point in paying for CHAPS as Faster is another digital transfer method that should arrive same day and is free.

Here's a topo on ways worldwide to move money. It looks at CHAPS, FASTER, BACS, SWIFT and SEPA.

CHAPS (Clearing House Automated Payment System) is for big money transfers, above say half a million and house purchases. It costs £20 (twenty pounds) though unscrupulous third parties may attempt a mark-up. The Bank of England clears these payments. Most UK retail banks are in the scheme, some aren't although they can use third-party processing, some (like mine) aren't UK.

FASTER payment is better as they usually arrive on the same day too, but they are free. You can move up to half a million a day with max for a single payment would be £250,000.

BACS (Bankers Automated Clearing Services) is for regular and can be one-off payments, same day not needed. Of two types -
Bacs credit, is a push from your account to the other, so a standing order.
Bacs debit, is a pull, where the other takes variable amounts in a direct debit after you've authorised by filling in a DD Mandate.

SWIFT (Society for Worldwide Interbank Financial Telecommunications) is for international. It replaced TELEX back in 1973. It is for bank transfers, forex, securities trading and derivatives. SWIFT is a messaging system between a network of partner banks using standardised formats for IBAN (international bank account numbers) and BIC (bank identifier codes). As SWIFT owns and administers the BIC system, it can identify a bank rapidos and send a secure payment message at the speed of the internet.

SEPA (Single Euro Payments Area) the European Union answer to Euro-only bank transfers. There are 36 members in SEPA: the UK, 27 EU member states and four EFTA (European Free Trade Association) member states and Iceland, Liechtenstein, Norway and Switzerland.

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