Bank Transfer
Bank transfers are used by the general public, businesses and banks in order to move money from one account to another account. Such transfers previously had be completed within a bank branch but the rise of internet banking now means that individuals can carry out bank transfers themselves. The speed of a bank transfer depends upon the method being used and the amount of money that is being transferred. A person will sometimes transfer money between their own bank accounts; these accounts may be at the same bank or at a different bank. Bank transfers are regarded as one of the safest way of moving large amounts of money from one bank account to another bank account.
There are numerous different forms of bank transfer that are used by people and businesses. Some of these methods will allow money to be transferred and some methods will take several days. In order to make a bank transfer the person wishing to transfer the money will require certain personal details. If making a transfer to another person the sender will require the persons name, their bank account number and their sort code. Money can then be sent over the internet banking platform and this payment will usually be made instantly. Individuals can transfer money between their accounts without any personal details if the bank accounts are all with the same bank.
The most popular bank transfer method used within the UK is BACS, this is Bankers Automated Clearing Services. This method is usually used by businesses in order to pay employees wages and creditors. When businesses use BACS payment can take around three days to clear, although when it is used by individuals who are sending money to other people the transfer is usually instant. Payments are made instantly after a faster payment service was introduced, the previous system had been heavily criticised for taking too long. Another method of bank transfer that is used within the UK is Chaps, this is a guaranteed same payment service. In order for this service to be used the money must be being sent to an account within the UK. Chaps is an electronic payment systems that is electronic and automated. This bank transfer service is usually used by businesses and it allows money to be sent to the recipient on the same day as long as the funds have been released before 3pm.
High security systems are in place within internet banking platforms to ensure that all transfers that are carried out are safe. When a bank transfer is carried out through a bank using a service such as BACS or CHAPS the sender is covered by the bank. People who wish to make bank transfers to send money abroad will have to wait up to fourteen days until the money sent has cleared in the recipients account.
