Faster Payments enablement guide - NatWest

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Faster Payments – mandatory reach to be completed by end of 2011 Background From 1 January 2012, the UK’s Payment Services Regulations require all qualifying payments between payment service providers to arrive the next working day. To achieve compliance all sort codes which can receive Bacs Credits must also be able to receive Faster Payments. The CHAPS Company, which operates the Faster Payments service, has mandated this with the backing of the FSA and Bank of England. Progress will be monitored across the industry. NatWest is also reviewing its Faster Payment limits to ensure that non-compliant payments can be sent as Faster Payments. As an Agency we are sure you are already aware of these messages and have given some consideration to what is required of you in advance of 2012. What you need to do Your sort code(s), as detailed in the covering email has (have) been identified as Bacs addressable sort codes and are required to become Faster Payments enabled before the end of December 2011. The FSA has clearly indicated that non-compliant payments, with execution timescales longer than D+1, will not be acceptable from 1 January 2012 and that all payment services providers (Agency Banks and Member banks) are responsible for ensuring compliance on this, including payments sent to non Faster Payments reachable sort codes. Decisions This Faster Payments enablement guide contains all the information you need to help you decide when to receive your Datalink* files. When you have considered the changes required to your internal systems and processes, you will need to complete and return the enclosed “Additional services/Amendment Form”. Next steps If you have any further questions not covered by this guide, please email: FPSwitchon@natwest.com *Datalink will in the future be known as Bankline Exchange due to the migration of Datalink services onto Bankline Exchange channels. For the purpose of this document we will refer to it under the generic name Datalink. 2
Receiving Faster Payments Impact Your sort code will be enabled on the Industry Sort Code Directory (ISCD). You will be able to receive Faster Payments for your customers. Funds availability Funds that are received via Faster Payments on an intra-day basis will be available for use as soon as they are applied to your settlement account. As entries are received, the value of these will be added to the accumulating balance of your account which will be viewable via Bankline, our internet banking service or Bankline Exchange. Customers using Bankline will have access to an intra-day balance for each Agency Clearing sort code. This balance will increase throughout the day as Faster Payments are received. After 18.30 each day, payments already received into your sort code/s will be posted to the associated settlement account and the intra-day balance will be reset to zero. Any payments received after this time will start accumulating as part of the next day’s balance. Statement changes – new bulk credit A new bulk credit will be posted to your settlement account each day for Faster Payments. To ensure you can reconcile all payments received into your Agency clearing sort code, the bulk credit cut off time will be 18.30 daily and the bulk credit will be posted overnight to your settlement account. Payments received after 18.30 on working days or on weekends and English bank holidays will show on your statement as the next working day, for example a payment received on a Saturday will be shown as a Monday statement entry. Like today, where there are separate bulk credits for Bacs and credit clearing incoming payments, a new bulk credit will be posted for all Faster Payments received. This bulk credit is only generated on English bank working days. The payment details that make up this bulk credit are available via your Datalink file. The narrative for the bulk credit will show that it relates to Faster Payments and the sort code. The narrative will be shown as: FP SETLMT xxxxxx (your sort code). 3
Page 1: Faster Payments enablement guide Ag
Page 5 and 6: File Frequency As Faster Payments m
Page 7 and 8: Datalink Charges Datalink/ISO8583 f
Page 9: Appendix B: Faster Payments ISO8583

Faster Payments enablement guide - NatWest

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