24 May 2005
The Payment Systems Task Force (PSTF) has pledged to cut the time it takes for credit card payments to clear by up to 66 per cent, reports the Office of Fair Trading (OFT).
The government appointed panel, led by the OFT and made up of banking industry representatives and consumer groups, said it plans to set up a new service that allows payments to clear on the day they are made, or by the next day at the very latest.
Currently it can take up to three days for electronic payments to clear, which concerns consumers as it can lead to higher interest charges and missed payments.
It is hoped the new service will be implemented by the end of next year.
Jonathan May, chairman of the PSTF and director of markets at the OFT, said: "This is good news for bank customers, both personal and business.
"Telephone and internet payments and standing orders should all be speeded up and the money could be available to the recipient on the same day."
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