Risks and Limitations

The main risk associated with this method is that a payment, once sent through, cannot be reversed or cancelled. This makes it critical for managers to have additional checks and controls in place to ensure that the risk of human error is reduced given that their money will move within seconds. Additionally, there are limitations with Faster Payments regarding how much money can be transferred. The maximum amount is £250,000, but this will depend on the organization offering the service.

For banks, challenges increase multifold due to the fact that the total processing time for each payment is very short. Performing anti-money laundering checks, reporting and other crucial regulatory checks in real-time is risk-prone and requires state-of-the-art infrastructure for all parties involved.

The Solution

IVP Cash Management Solution provides seamless integration with the Faster Payments Service through SWIFT and API. Using this automated solution, fund managers can create FPS wires with less than 10 clicks and move money to a desired location within seconds. To reduce the risk of human error, IVP Cash Master has a complete workflow-based control so that wires can pass through a minimum of four checks prior to execution. It also supports the loading of BACS faster payment files directly into the system for processing – reducing the need for human intervention and, therefore, any additional associated risks.