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What's new at Howbankswork.com?
Welcome to the Summer edition of Howbankswork.com.
- The Payment Services Directive - Published in August 2007
The Payment Services Directive (PSD) has not received anything like the media air time that SEPA has but for a UK bank it is actually a more important set of changes. Over time it will:
- Force banks to remove “float” from their payment systems (e.g. Standing Orders, Credit card payments).
- Reduce foreign payment complaints and refunds
- Cause them to change their foreign exchange processes
- Create more competition for payment services, both domestic and international.
All good reasons to read this article and the legislation carefully. The article is broken into the following sections:
Previous edition of Howbankswork.com.
- New Rules for the Cheque Clearing System
The Government has announced changes that have to be made by end 2007 to the cheque clearing system. We believe these changes will hit the smaller banks and building societies hardest but the Government may force the Clearing Banks to “help” these institutions out. More of a problem is the sheer do-ability of the changes for these smaller banks and building societies, given that the changes co-incide in time with the arrival of Faster Payments (see our sister web site www.fastpayments.co.uk for more details) and the Single European Payments Area (SEPA) – see our article on SEPA for more details.
To explain the changes and how we have reached these conclusions, we have created three reports;
1. An explanation of the Government Changes and an explanation of how these impact Clearing Bank and non-Clearing Bank cheque processes. (This assumes a knowledge of the cheque clearing processes)
2. For those who are not familiar with the UK Cheque clearing processes we have created two further reports that explain the current UK cheque clearing processes.
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