Finance & Payments
3 plain-English finance & paymentsterms explained — part of the Yolist UK trade & business glossary.
- BACS, CHAPS & Faster Payments
These are the UK's three main interbank payment systems. BACS (Bankers' Automated Clearing Services) handles bulk payments like salaries and Direct Debits over a three-working-day cycle. CHAPS provides same-day, high-value sterling transfers (often for property purchases) with no upper limit. Faster Payments enables near-instant electronic transfers up to a per-transaction limit, used for most online and mobile banking payments. Businesses choose based on speed, value and cost.
- Financial Ombudsman Service (FOS)
The Financial Ombudsman Service (FOS) is the UK's free, independent body for settling disputes between consumers and financial businesses — banks, insurers, lenders and advisers. Consumers must first complain to the firm; if unresolved after eight weeks, they can escalate to the FOS, which can order compensation. It covers firms regulated by the FCA and is funded by industry levies and case fees.
- FSCS Protection
The Financial Services Compensation Scheme (FSCS) is the UK's statutory deposit-guarantee and compensation scheme of last resort. If an authorised bank, building society, insurer or investment firm fails, the FSCS protects eligible deposits up to £85,000 per person per institution, and offers cover for insurance and investments. It is free to consumers and funded by levies on the financial industry. Protection applies only to FCA/PRA-authorised firms.
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