The Faster Payments system in the UK has changed how quickly money moves between bank accounts. No more waiting days for funds to clear: people and businesses can send money and see it arrive almost instantly. This real-time payment system makes it easier than ever to pay bills, suppliers, and employees – whether through online banking or a mobile banking app.
But as convenient as this is, the Faster Payments service does come with limits. Understanding those limits is key to managing your finances and bank accounts. Whether you’re a small business owner paying suppliers, a freelancer receiving wages, or a consumer sending a one-off payment, knowing how much you can send – and how to work around caps – can save you time, stress, and even money.
In this article, we’ll break down the Faster Payments limit, explain how it affects different types of transfers, and offer smart solutions to get around it.
What is the Faster Payments system?
The Faster Payments system is a UK-based electronic payments network that allows bank transfers to be processed almost instantly – usually within seconds, but sometimes up to two hours. Unlike BACS or CHAPS payments, which can take a full business day or longer, the Faster Payments service works 24/7, 365 days a year – even on weekends and bank holidays.
Note that Faster Payments can only be sent within the UK and is used to process payments in British pounds (GBP) exclusively.
It’s used by most major UK banks and building societies and supports various payment types, including one-off payments, standing order payments, and even mobile app transfers. Whether you’re using a banking app or desktop portal, chances are your transfer is being routed through this payment system.
For business customers, the benefits of Faster Payments are huge. Receiving funds the same day or within minutes boosts cash flow and allows for faster reinvestment. You can pay suppliers, refund customers, or manage payroll without waiting for slow payment clearance.
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Types of payments processed through Faster Payments
The Faster Payments scheme supports a wide range of payment types, each for different needs:
Single immediate payments: Also known as one-off payments, these are sent instantly and used for transferring funds to family, friends, or suppliers.
Standing orders: Regular payments are sent on scheduled dates, which are ideal for rent, subscriptions, or supplier invoices.
Payments made via mobile banking: These often have preset templates and biometric verification for quick and secure sending.
Online banking transfers: This is still the most common way to send money, especially for larger amounts via desktop portals – and Faster Payments can be used here, too.
Regardless of the payment type you use, the core benefit of the Faster Payments system is speed and reliability. But while the Faster Payments system is fast, it’s also bound by limits that can vary depending on your bank account, sort code, or even the payee.
The Faster Payments limit
The limit for Faster Payments is £1 million per payment. That’s the upper limit of the Faster Payments infrastructure, but not necessarily what your bank allows.
Each bank or payment provider sets its own limits based on internal risk policies, account type, or even how you access your banking (mobile vs. desktop). For example:
A personal account may allow £25,000 via a mobile app but £50,000 via online banking for single immediate payments.
Business accounts often have higher limits, especially for verified or trusted payees’ accounts.
Digital-first providers like Starling Bank may offer the full £1 million limit for select users.
Bank accounts can impose these limits for various reasons, such as fraud prevention, user verification levels, and transaction history. It’s also common for banks to set daily or aggregate limits, not just per transfer. Some even cap the number of payments you can make in one day.
How the limit affects business transfers
If you have a business, you will likely hit these limits when managing high-value transactions – large supplier payments or recurring international expenses. For example, if your bank has a Faster Payments limit of £100,000 per transaction, a £500,000 payment would require multiple transfers or an alternative route like a CHAPS payment to process payments.
Hitting these Faster Payments limits can delay time-sensitive payments and disrupt supplier relationships. In the worst case, you may not find out about these limits until after a failed transaction attempt on a payment date.
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Tips for working within the limit
Plan ahead: If you need to send a large payment, split your Faster Payments transaction across several days or smaller bank transfers.
Use the most flexible channel: Online banking often has higher limits than mobile banking apps – for Faster Payments and other transfer types.
Verify new payees early: Many banks restrict initial transfers to a new account – add and verify your payee in advance.
Double check payment details: Faster Payments are hard to reverse. Sending money to the wrong account could result in costly delays.
Talk to your bank: For one-off large payments, banks may increase your limit temporarily.
Common pitfalls to avoid
Faster Payments is easy, but beware of these mistakes:
Typos in payment details: Mistakes in the account number or sort code will send your money to the wrong person.
Going over your daily limit: Even if your single payment is within the limit, cumulative payments may exceed your daily cap.
Not verifying new payees: If your bank has a temporary limit for unverified payees, your payment may fail or be delayed.
Choosing the wrong payment method: Faster Payments may not be the best option for very large or international payments.
To make Faster Payments smoothly, always double-check payment details, use the right method for the amount, and stay within the limits of your bank accounts.
Genome’s cross-border payment solutions
Hitting Faster Payments limits or dealing with international suppliers? Genome has a better way to send money. Genome is a licensed electronic money institution that provides financial solutions for businesses that need more flexibility than traditional banks offer.
With Genome, you can:
Send money locally and globally via SEPA Instant and Credit Transfers, SWIFT, and other payment methods.
Hold multiple currencies under one account and convert between them at competitive rates. You can have up to 5 accounts per currency: EUR, USD, GBP, PLN, CHF, JPY, CAD, CZK, HUF, SEK, and AUD.
Open dedicated IBAN accounts for your company in a few clicks.
Issue virtual and physical Visa cards available for in-store, online, and contactless payments. Link cards to multi-currency accounts.
Send out up to 3000 transfers at once with our batch transfers feature.
How Genome’s international transfers work:
If your company is eligible, you can unlock access to international transfers, allowing you to receive and send payments to over 40 countries in 11 currencies.
Genome’s Intelligent Routing System will automatically select the best payment route based on your payment amount, currency, and destination. Your money can be sent via SEPA, SWIFT, Faster Payments, CHAPS, or TARGET2.
Using our international transfers, you can also receive Faster Payments, as well as BACS, CHAPS, TARGET2, SEPA, and SWIFT transfers.
So whether it’s a Faster Payment, CHAPS, or SWIFT transfer, Genome will get your funds where it needs to go – fast and secure.
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Why use Genome for business payments?
Genome has features for business customers:
Avoid the Faster Payments limit: Handle high-value transactions without breaking them up or calling your bank, as Genome will select the best option for your payment.
Simplify international payments: Send and receive cross-border payments using different currencies.
Stay in control: Real-time notifications, downloadable statements, and a detailed transaction history keep your account management simple.
Boost security: Every single transaction is protected according to the EU regulatory standards. From payroll to paying global partners, Genome has got you covered.
Summary
Faster Payments is great for quick, secure transfers in GBP within the UK – but it’s not without its limits. The £1m Faster Payments limit may sound high, but many banks have their own limits below that. Knowing how your bank works and what limits apply to your account, channel, or payee is key to avoiding delays or failed payments.
If your business is making frequent transactions, large payments, or cross-border payments, a platform like Genome is a more flexible, scalable solution. It takes the stress out of same-day payments, keeps you within limits, and opens up new ways to manage your funds.
Ready to stop worrying about whether your payment will go through? Open a business wallet at Genome today and take control of your transfers.
