Streamline business payments with OakNorth business banking: FPS, CHAPS, and Bacs

Efficient payment solutions are essential for any scaling business. At OakNorth, we understand the importance of swift, secure, and flexible payment systems. Our business banking offering includes three key payment schemes: Faster Payment Systems (FPS), CHAPS, and Bacs. Each of these solutions is designed to meet the diverse needs of scaling businesses, providing the speed and security required in today’s fast-paced business landscape.

Let’s dive into the specifics of each payment solution and their benefits.

Faster Payment System (FPS)

FPS is the most widely used payment scheme in the UK, renowned for its speed and convenience. With FPS, payments are cleared in under two hours, allowing businesses to make and receive payments quickly and efficiently. This system supports payments up to £1 million, although individual banks may impose lower transaction limits starting from £250K.

Benefits of FPS:

  • Speed: Payments are processed in under two hours
  • Convenience: Make payments up to £1 million seamlessly
  • Cost-effective: Typically free, making it a cost-efficient option for businesses

Whether you need to pay suppliers, employees, or partners, FPS ensures your transactions are completed swiftly, keeping your business operations running smoothly.

CHAPS

When it comes to high-value transactions that need to be settled on the same day, CHAPS (Clearing House Automated Payment System) is the ideal solution. This system is used to settle high-value GBP payments securely, with no limit on the amount that can be transferred. While there is usually an associated cost (averaging around £30), the convenience and security it offers are unmatched.

Benefits of CHAPS:

  • Same-day settlement: Ensure high-value payments are processed securely and promptly
  • High-value transactions: No limit on the amount that can be transferred
  • Convenience: With OakNorth, make CHAPS payments online, avoiding the need for branch visits or lengthy phone calls

For businesses needing to close deals or make time-sensitive payments, CHAPS offers the reliability and speed necessary to meet critical deadlines.

Bacs

Bacs payments, including Direct Debit and Direct Credit, provide a straightforward way to handle recurring transactions. This system is commonly used by organisations to collect regular payments, such as utility bills, or to credit accounts, such as HMRC reimbursements.

Benefits of Bacs:

  • Recurring payments: Ideal for regular, automated transactions
  • Direct debit and credit: Simplify both incoming and outgoing payments
  • Ease of setup: Customers can easily register account details for seamless transactions

Bacs is perfect for businesses that require a reliable method for managing routine payments, ensuring consistency and predictability in cash flow management.

Why choose OakNorth business banking?

Designed for businesses that have outgrown neobanks and are underserved by high-street banks, we offer tailored business banking solutions that blend industry expertise with innovative technology.

Features of OakNorth business banking:

  • Quick application: Apply for a business current account in just 10 minutes
  • Customisation: Add users, enable two-person payment approvals, and equip your team with free debit cards
  • Easy-access savings: Earn 3.85% AER interest on idle cash
  • Dedicated support: Direct access to a business partner who understands your unique needs

At OakNorth, we empower businesses to dream bigger with banking solutions that work for you.

Ready to transform your business banking experience? Read more about OakNorth business banking to join our growing community of successful scaling businesses.

You may also be interested in

Streamline business payments with OakNorth business banking: FPS, CHAPS, and Bacs

Read more

Growth lessons from three iconic UK businesses

Read more

A developer’s guide to Biodiversity Net Gain: Insights from our recent webinar

Read more