Thursday 11th December 2008
Clarification of changes for credit card holders

New principles on risk-based repricing
Creation of breathing space for customers facing financial hardship

Following a successful meeting on 11 December between the credit card industry and Government, real changes for credit card holders who may be struggling to make their regular payments are announced. This delivers on the industry’s commitment to draw up new principles made at the credit card summit on 26 November.

APACS has published a fact sheet to explain exactly what has been agreed and what the changes mean for credit card holders. It is available from www.choosingandusing.com and www.apacs.org.uk.

Two changes have been agreed to help customers struggling with their finances in these challenging economic times, they reflect current industry best practice:

Breathing space for customers in trouble: the first is the creation of an agreed breathing space for any customer working with one of the free debt advice agencies to establish a debt repayment plan.

This will give those customers a minimum of 30 days, whilst they agree a repayment plan, during which time the credit card company will suspend collection activity. If discussions remain ongoing after 30 days, there is an option of extending this by an extra 30 days to ensure agreement can be finalised. This change will be invaluable to customers when they are under the most stress.

Increased transparency on risk-based repricing: The second change will increase transparency for customers in the area of risk-based repricing. Many credit card companies use risk-based repricing to calculate the risk of lending an open-ended, unsecured line of credit to a customer whose financial position can change over time. Risk-based repricing can result in changes to the overall cost of credit to a customer.

These agreed changes will ensure that customers will be notified when their interest rate is being changed as a result of risk-based repricing, and critically, if their interest rate goes up they will be given sufficient time to close their account or be offered an alternative product, where available. Credit card issuers have also agreed that they will not increase the interest rate on a card on the basis of risk during its first twelve months, or more often than six monthly thereafter. No risk-based repricing decisions will be taken after 01 January 2009 that do not comply with these principles.

We are now working to ensure these changes are built into The Banking Code so that they can be independently monitored.

Joanna Elson, Chief Executive of the Money Advice Trust says:
" We warmly welcome a new 'breathing space' when credit card companies will suspend collections activity for 30 days - and if necessary longer - whilst people in debt work with free independent debt advisers to come up with a workable repayment plan. The current economic climate means that more people than ever before will be needing help and support, and this appears to be a useful step forward.”

Sandra Quinn, Director of Communications at APACS says:
“These changes will really help those customers who find themselves faced with real problems in paying money back that they’ve borrowed. But ideally we’d like to help ensure customers don’t get to this point. Although half of cardholders haven’t in the past few years used credit cards as borrowing tools – but if you do borrow on a credit card or plan to at this time of year – as so many of us do – make sure you know how you plan to repay it. Credit cards offer great flexibility for borrowing in the short-term but can be expensive if you borrow over a longer period.

These changes do not mean that your APR will always remain the same, which is why it is important to check that you have the right card for you. Your APR is always a good place to start but interestingly only 25%* of credit card holders say that they know the APR, and therefore what they are being charged to borrow on their credit card.”

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For further information contact the APACS Press Office:
Jemma Smith on t: 020 7711 6340 m:07811 113075
Sandra Quinn on t: 020 7711 6234 m:07768 044656
or press@apacs.org.uk

Notes to Editors
STATEMENT OF PRINCIPLES RELATING TO CREDIT/STORE CARD RISK- BASED RE-PRICING

The industry has developed these principles to cover the circumstances, alternative options, frequency and transparency of an interest rate increase.

Where we increase a customer’s interest rate, we will provide him/her with options. These will always include the option to close the account and repay the remaining balance at the existing rate of interest, within a reasonable period, having regard to the existing level of minimum payments and the customer’s financial situation. Where we offer alternative lending products, we may also provide the option to transfer the balance to such a product at the existing (or lower) interest rate.

We will not increase interest rates in the following circumstances:
Where a customer has failed to make the minimum contractual payment requested on the last two or more consecutive monthly statements; or

• Where an agreed repayment plan is in place in respect of the account; or
• Where we have been formally notified by a not-for-profit debt advice agency that the customer is in serious discussion with it.

Provided a customer manages his/her account in accordance with the product’s terms and conditions we will not:

• Increase interest rates within the first twelve months of a customer having a credit/store card;
• Increase interest rates more often than six monthly beyond this period.

We will always give a customer at least 30 days notice of an increase in interest rates, so that the customer can make other arrangements, should they so wish.
If the customer asks, we will ensure that our staff are able to provide the customer with an explanation as to why an interest rate may have been increased.

APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and the new Faster Payments Service launched on 27th May for online/phone banking transactions and standing orders. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses.

The credit card industry has worked with the Finance and Leasing Association to ensure that risk-based repricing on store cards is also included within these principles.
* The research survey was undertaken by Research Now plc on behalf of APACS amongst 500 credit cardholders.

Bradley James Group

Monday 8th December 2008.
Payments industry issues advice for people with disabilities

-Payments industry marks global day by promoting understanding of disability issues

- Advice guide launched offering help to those with problems accessing payment services

APACS, the UK payments association, is today (2 December 2008) marking the upcoming UN International Day of Persons with Disabilities with a new advice guide aimed at helping consumers unable to access some payment methods and services. The guide – Payments & accessibility ­– offers top tips on payment options for people with a disability, explaining the range of services available.

Under The Banking Code, banks and building societies are obliged to provide customers with alternatives if they are unable to use standard services. For example, cardholders that are unable to use a PIN – because they are unable to remember a PIN number or because they cannot use a chip and PIN terminal – may request a chip and signature credit or debit card.

Sandra Quinn, director of communications, said:

“New and innovative services like chip and PIN and online banking have made life easier for most of us. However, these products and services can be daunting for some and impossible for others. Through The Banking Code, the payments industry offers protection and guarantees to ensure all consumers can easily access the payment services they need.”

David Sinclair, head of policy at Help the Aged, added:

“Elderly consumers can feel overwhelmed by some payment options and therefore miss out. Alternatives like chip and signature cards are extremely important in making sure that older people can access the full range of services provided by the payments industry. This guide will remind older or disabled people about their rights and how to get the best from their payments.”

The Payments & accessibility guide covers a range of payment methods, including cheques, telephone and internet banking and plastic cards, together with advice on staying safe from fraud. It is free to download from the APACS website at www.apacs.org.uk and has been shared with groups representing those with disabilities.

Ends

For further information contact the APACS Press Office on 020 7711 6280 or press@apacs.org.uk

Notes to editors:

APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and the new Faster Payments Service launched on 27 May for online/phone banking transactions and standing orders. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses.

The United Nations International Day of Persons with Disabilities is to be held on 3 December. The 2008 theme is "Convention on the Rights of Persons with Disabilities: Dignity and justice for all of us".

Bradley James Group

Monday 24th November 2008.
Credit card industry announces important data sharing enhancement

Additional data will help the credit industry to identify customers who may be at risk of getting into financial difficulties and to deliver on commitments in the revised Banking Code

APACS, the UK payments association, on behalf of the credit card industry today announced an important enhancement to well established data sharing processes to share ‘behavioural data’ on their customers’ accounts.

All APACS members have committed to this initiative. Starting this December, five credit card issuers - Barclaycard, Capital One, GE Money, HBOS and MBNA - will be ready to share the data and others will then follow in accordance with their specific IT plans. The data will be shared to help to identify and assist people who may be starting to experience financial difficulties. The new initiative will also help the industry to fulfil its commitment to responsible lending, as set out in the revised Banking Code, which came into effect in March this year.

Traditionally, shared data for credit cards has included the customer's balance, credit limit and whether payments are up to date. The new data will now also include the amount of their last payment, and whether this was equivalent to the minimum payment; changes to credit limits; the extent to which they withdraw cash on their account and if the customer is signed up to any promotional deals. This last category is particularly important because it makes it possible for a lender to distinguish between someone only ever paying the minimum repayment because they may be in financial difficulty, from someone who has the means to repay, but chooses not to because of a deal they have obtained.

Data is shared through the credit reference agencies and will enable lenders to have a clearer picture of how customers use their credit cards, so that they can lend accordingly- thus supporting the industry's long-standing commitment to responsible lending.

Paul Rodford, APACS' Head of Card Payments, said:

“The holy grail for credit card companies is to have access to data that could predict a customer’s future ability to repay. Data sharing is well established in the UK, and has evolved over many years. This new data relates to how customers manage their accounts and will enable lenders to intervene, at an earlier stage, for those showing signs of debt stress and ensuring that those already struggling are not given further credit.

"Our announcement today is not a silver bullet for tackling over-indebtedness, but it is a significant step forward in the card industry’s ongoing commitment to responsible lending. It has taken a great deal of work and investment to achieve and should bring real benefits for the consumer.”

Peter Tutton, Senior Policy Officer, Citizens Advice, comments:

"Citizens Advice welcomes the news that this important enhancement to data sharing is now launched. We believe that it is increasingly important that customers who are showing signs of experiencing debt stress are identified at an early stage, so that appropriate help can be provided. It is now imperative that lenders make full use of this additional information as part of an ongoing commitment to responsible lending.”

To coincide with this announcement and explain how behavioural data will now appear on a customer’s credit report, APACS has revised its consumer guide, Your Credit Record, which sets out the information held on a credit report by the credit reference agencies and explains why it is important for consumers.

The guide can be downloaded from here: http://www.apacs.org.uk/resources_publications/documents/Yourcreditrecord-November2008.pdf

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For further information contact the APACS Press Office on 020 7711 6316 or press@apacs.org.uk

Notes to Editors

APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and the new Faster Payments Service launched on 27 May for online/phone banking transactions and standing orders. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses.

• During December, a number of credit card companies will start to share the new behavioural data on their credit card customers, as an important improvement to existing well-established data sharing processes.
• APACS has championed improved data sharing in the credit card industry. To date this has included the commitment of all credit card issuers to share data on all credit card accounts, to the extent allowed by law.
• Data currently shared, however, is of limited use in predicting a customer’s ability to manage their debt if they were to be impacted by an external event or life change (such as the loss of their job or divorce).
• Many commentators suggest that certain behaviour could well indicate that a customer is at risk of becoming over-indebted - specifically only ever making minimum repayments on a number of cards and or making regular cash withdrawals on credit cards.
  In December 2005, a number of banks signalled their intention to increase the amount of data shared about cardholders’ credit card accounts. Subsequently, work has been progressed at an industry level to define the new data, facilitate the technical requirements and create the rules around the use of the data.
• The new data to be shared will include:
  - The amount of the last payment and whether that is equivalent to the minimum requested repayment
  - The number and value of cash advances on that credit card;
  - Changes to credit limits
  - Whether there is a promotional interest rate in place (which might explain why a minimum payment is being made)
• As with all shared credit data, lenders must at all times comply with the requirements of the Data Protection Act 1998, together with the industry's own strict self regulating rules to prevent the use of shared data for target marketing.
• Most participating credit card companies are expected to share this new data during the course of 2009, giving lenders a greater pool of information on which to base their lending decisions.

Further information on this initiative may be found on the APACS website: http://www.apacs.org.uk/payment_options/Creditcardbehaviouraldatasharing.html

Bradley James Group

Friday 17th November 2008.
APACS BACKS IWF AWARENESS DAY

The Internet Watch Foundation (IWF) underlined the importance of its Awareness Day today with the release of new research* which indicates that over three quarters (77%) of UK adult internet users who have stumbled across images of children being sexually abused are unsure how to report them. In addition, 71% of those surveyed ranked the availability of online child sexual abuse images as their top concern about the internet.

So to help raise awareness of the IWF’s national reporting service, major online brands including internet service providers, mobile operators, social networking sites, online gaming companies, moderators, registries, filtering companies and search engines as well as IWF partners, charities and government departments are joining forces to publicise the IWF ‘Hotline’ on 24 October. Supporting activities include running IWF advertising across websites, emailing staff and customers and featuring IWF information on homepages and intranets in order to reach out to millions of UK internet users.

Peter Robbins OBE, QPM, IWF Chief Executive, said: “The UK has a very proactive approach to tackling child sexual abuse content online but we could do even more with the public’s help. That is why so many organisations are taking part in this campaign today to reach millions of people and raise awareness of our ‘Hotline’ service. Internet consumers should know that if they do stumble across these images then it’s vital to report them to the IWF; we have international partnerships in place to get these websites removed.

The IWF members and supporters who are united in their efforts to try to eradicate these terrible images on the internet deserve all our thanks.”

99% of adult internet users in the UK agree that the internet is an overwhelmingly positive resource in everyday life and half of UK internet users are aware the UK has been successful in combating online child sexual abuse content.

This UK approach sees the IWF working in partnership with the online sector and the police and has led to the near eradication of child sexual abuse content hosted in the UK. Initiatives like the voluntary blocking in the UK of child sexual abuse websites by online companies are helping to reduce inadvertent access to content hosted abroad, indeed, 2007 saw a 10% decrease in the number of websites confirmed by the IWF to depict child sexual abuse.

* Research of 1000 UK adult internet users was carried out during September and October 2008
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For interviews or further information, please contact:
Bill McIntyre or Vicki Harding - iris PR, t: 020 7654 7987/020 7694 7926, e: info@iris-pr.com
Sarah Robertson - IWF, t: 01223 237700, e: sarah@iwf.org.uk

Notes

Additional facts and figures from the new IWF survey research of UK adult internet users

• 100% UK internet users believe that child sexual abuse content should be removed or blocked
• After completing the survey, 97% confirm they would now report child sexual abuse content to the IWF if they ever stumbled across it in the future
• 97% of internet users agreed the IWF’s job is an important one
• Only 27% were aware that the UK online sector protects users by blocking access to known child sexual abuse websites
• 94% of internet users think unrestricted access to all content on the internet is important (in line with IWF’s approach to URL-specific blocking)

About child sexual abuse content on the internet

• Less than 1% of child sexual abuse content reports are traced to UK hosts since 2003, down from 18% in 1997
• Over 95% of the UK population with residential broadband connections are now protected through blocking
• IWF processed 34,871 reports during 2007
• 10% of the children in images assessed by IWF appear to be under 2; 33% 3 – 6; 80% under 10
• Half of all child sexual abuse websites known to IWF depict most brutal and severe levels of abuse
• IWF identified a core of 2755 child sexual abuse websites, hosted abroad, in 2007
• Reports to the IWF of potentially illegal online content can be submitted easily and anonymously
• Recent Ofcom research shows 62% UK adults have internet access in the home

If you are accidentally exposed to or discover child sexual abuse content on the internet you should report it to the IWF at www.iwf.org.uk. The law protects your right to report that content to the relevant authorities such as the IWF or Police, however, anyone taking it upon themselves to seek out or investigate this kind of material where there is no legitimate duty to do so will be liable to prosecution.

Please note that "child pornography", "child porn" and "kiddie porn" are not acceptable terms.

The use of such language acts to legitimise images which are not pornography, rather, they are permanent records of children being sexually abused and as such should be referred to as child sexual abuse images.

About the Internet Watch Foundation (IWF)

• IWF industry membership has risen from 9 in 1999 to 86 in 2008
• IWF works closely with the Child Exploitation and Online Protection (CEOP) Centre and other law
  enforcement agencies
• IWF is a member of INHOPE, the Association of Internet Hotlines, and is co-funded by the EU

IWF is the UK’s internet ‘Hotline’ for the public and IT professionals to report potentially illegal online content within our remit. We work in partnership with the online industry, law enforcement, government, the education sector, charities, international partners and the public to minimise the availability of this content, specifically, child sexual abuse content hosted anywhere in the world and criminally obscene and incitement to racial hatred content hosted in the UK.

We are an independent self-regulatory body, funded by the EU and the wider online industry, including internet service providers, mobile operators and manufacturers, content service providers, filtering companies, search providers, trade associations and the financial sector as well as other organisations that support us for corporate social responsibility reasons.

We help internet service providers and hosting companies to combat abuse of their networks through our national ‘notice and take-down’ service which alerts them to potentially illegal content within our remit on their systems and we provide unique data to law enforcement partners in the UK and abroad to assist investigations into the distributers of potentially illegal online content.

As sexually abusive images of children are primarily hosted abroad, we facilitate the industry-led initiative to protect users from inadvertent exposure to this content by blocking access to it through our provision of a dynamic list of child sexual abuse URLs.

Bradley James Group

Friday 17th October 2008
UPDATE ON ICELANDIC BANKS AND PAYMENTS

If you are a customer of an Icelandic bank and you are concerned about the safety of your money, you should speak to the to the Financial Services Compensation Scheme 020 7892 7300 or see the FSA's customer advice and the Treasury's statement.

We have also produced some answers to some of the most frequently asked questions:

Q. Is my money safe?

A. Yes. HM Treasury has confirmed that the Government will make sure that no retail depositor will lose any money as a result of the closure of Icelandic banks, for more information see the statements by the Treasury:

http://www.hm-treasury.gov.uk/press_102_08.htm; http://www.hm-treasury.gov.uk/press_101_08.htm.

Q. How long will it be before I can access my money?

A. Unfortunately only the Financial Services Compensation Scheme (FSCS), or your bank can confirm the timesales for refund. The FSCS helpline number is 020 7892 7300. However, it is hoped that your money will be refunded between three and six months by the FSCS. They are currently in the process of compiling a list of names and addresses of UK Icesave cusomers and their account balance information. Once this information has been collated, FSCS will write to you.
FSCS recommend that you check their website www.fscs.org.uk for any updates.

Q. How do I prove what I am owed?

A.This information will be given to the FSCS by Icesave. However, it is a good idea to log on to the Icesave website - which is still functioning - and print out a statement. You should also keep your bank statement which shows when you initially transferred money into Icesave from your current account.

Q. I made a payment and it left my account but didn't arrive in the destination account, where is my money?

A. Your money will not have left your own bank and it is more than likely that your bank is in the process of putting that money back into your account so you will be able to see the updated status of your account when you next log onto your account online.

Q. What will happen if I try to make a payment from my Icelandic bank account?

A. Payments to and from a number of Icelandic banks (including Icesave, Kaupthing Edge, Heritable and Landsbanki) have been suspended. So you will not be able to make payments from accounts with these banks at present.

Q. I tried to make a CHAPS payment, it was accepted and I was charged for it, the money left my account but never arrived at the destination account. Where is my money and will I be refunded the cost of the CHAPS payment?

A. Your money will still be within the bank that you sent it from and should be returned to your account. You will have to speak to your bank about obtaining a refund if you have paid for a service that you have not received. As with all payments you should keep a receipt of any transaction details.

Q. I made a payment from my Icelandic bank account and the payment hasn't arrived, where is my money?

A. Your money will not have left your own bank and it is more than likely that your bank is in the process of putting that money back into your account so you will be able to see the updated status of your account when you next log onto your account online.

Bradley James Group

1st October 2008
APACS announces latest fraud figures

• Plastic card fraud losses up 14% to £301.7m in first six months of 2008
• Fraud abroad accounts for 40% of total card fraud losses
• Online banking fraud losses up by 185% to £21.4m
• Cheque fraud losses up by 35% to £20.4m

Figures released today (01 October 2008) by APACS, the UK payments association, show that total card fraud losses increased by 14 per cent in the six months to June 2008 compared with the first half of 2007. Total card fraud losses for this period now stand at £301.7m, of which more than 40 per cent is the result of fraud abroad - which typically involves criminals using stolen UK card details at cash machines and retailers in countries that have yet to upgrade to chip and PIN.

Chip and PIN has made it more difficult for fraudsters to commit card fraud in the UK, with losses at UK retailers down by 35 per cent since 2005 (£73.2m during January to June 2005 compared with £47.4m during January to June 2008). The latest figures also reveal that fraud on lost and stolen cards (£27.3m) has fallen by 38 per cent in the past three years – and is now at its lowest level for ten years.

However, criminals continue to target UK-issued cards, copying the magnetic stripe data and creating counterfeit magnetic stripe cards that can potentially be used fraudulently in countries that haven’t yet upgraded to chip and PIN. This has caused a 190 per cent increase in losses abroad over the last three years, which now total £121.2m. This type of fraud will become more difficult to commit when the European banking industry meets its target to complete its chip card rollout by 2010.

Losses from phone, internet and mail order shopping fraud have continued to increase year-on-year – albeit at a decreasing rate – and now stand at £161.9m, 54 per cent of all card fraud losses. However these losses need to be seen in the context of increasing numbers of online retailers and ever-growing numbers of online transactions – from 2001 to 2007 this type of fraud went up by 204 per cent whilst, over the same time period, the value of online shopping card transactions alone increased by 415 per cent*.

Sandra Quinn, director of communications at APACS says:
"Criminals continue to target those areas where we do not currently have the security benefits of chip and PIN, causing increases in fraud abroad and phone, internet and mail order shopping fraud. Fraud abroad will be made more difficult for criminals to commit as more countries rollout chip and PIN.

"To help tackle online fraud, we continue to urge shoppers to: protect their computer with up-to-date anti-virus software; only use secure websites; and register with MasterCard SecureCode and Verified by Visa when prompted – as these systems make cards more secure when shopping online. APACS is launching a new campaign later this month – Be Card Smart Online – which is aimed at providing further guidance and advice to help consumers stay safe online."

Online banking fraud losses totalled £21.4m during the six months to June 2008 – a 185 per cent rise on the 2007 figure. Although this increase seems marked, it is in keeping with a gradual increase seen from the second half of last year, when online banking fraud losses increased to £15.1m (during July to December 2007). The increase is largely due to criminals targeting online banking customers through phishing and spyware scams - because the banks’ own systems have proved difficult to attack.

The number of recorded phishing attacks continues to increase, with more than 20,000 fraudulent phishing websites set up in the first half of 2008 – an increase of more than 180 per cent from the same period last year.

Any fraud losses through the faster payments channel would form part of these online banking fraud figures. However, the new service only launched with a gradual rollout, which commenced on 27 May.

Help and advice about preventing all types of online banking fraud is available at www.banksafeonline.org.uk.

Cheque fraud losses during January to June 2008 rose 35 per cent, from £15.1m to £20.4m. However, these losses still remain relatively low compared with other fraud types.
* CNP fraud losses were £95.7m in 2001; £290.5m in 2007. Value of online shopping card transactions: £6.6bn in 2001; £34bn in 2007.

ENDS

For further information contact the APACS Press Office on 020 7711 6340 / 020 7711 6251 / 020 7711 6316 or press@apacs.org.uk

Notes to editors:
1 APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and the new Faster Payments Service launched on 27th May for online/phone banking transactions and standing orders. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses. Further information and advice for consumers and retailers regarding how to avoid being a victim of all types of card fraud is available at www.cardwatch.org.uk.

2 Verified by Visa and MasterCard SecureCode are secure online payment systems that enable cardholders to authenticate themselves when shopping online at participating merchants through the use of a password. More information is available at www.shopsafeonline.org.uk

3 Phishing is the name given to the practice used by fraudsters who send emails at random that seem to come from a genuine online bank or business, in an attempt to trick customers of those companies into disclosing personal security information - typically at a bogus website operated by the fraudsters. These emails usually claim that it is necessary to ‘update’ or ‘verify’ your customer account information and they urge people to click on a link from the email which takes them to the bogus website. Any information entered on the bogus website will be captured by the criminals for their own fraudulent purposes.

You can prevent yourself from becoming a victim of phishing by being wary of all unsolicited emails, even if they appear to originate from a trusted source. Although your bank may contact you by email, it will never ask you to reconfirm your login or security password information by clicking on a link in an email and visiting a website. For more information, visit www.banksafeonline.org.uk

4 Phishing incidents relate to the number of recorded phishing attacks on UK banks and building societies: each phishing incident typically involves fraudsters setting up a website that is a fake version of a genuine bank website, and then sending out thousands or even millions of spam emails trying to convince people to click on a link that will send them to that fake site. The objective is to fool people into then entering their online banking security information – such as user names, PINs and passwords – onto the fake site.

5 A money mule, or money transfer agent as it is sometimes called, is someone recruited by fraudsters needing to transfer money from one country to another. As most fraudsters are located overseas and it is not possible to make cross-border transfers from most online bank accounts in the UK, a money mule is required to launder the money. After being recruited by the fraudsters, money mules receive funds into their accounts and they then withdraw the money and send it overseas using a wire transfer service, minus a certain commission payment.

Money mule recruitment adverts are calculated according to each time a new fake ‘job’ advert is detected. Such scams may appear as spam emails, spoof websites, adverts on real job recruitment websites or even in national newspapers. For more details, visit www.banksafeonline.org.uk

6 Advice to help avoid being a victim of fraud:

• Don’t let your cards or your card details out of your sight when making a transaction.
• Destroy, preferably shred, any documents or receipts that contain personal financial information when you dispose of them.
• Do not keep your passwords, login details and PINs written down.
• Do not disclose PINs, login details or passwords in response to unsolicited emails claiming to be from your bank or the police.
• When entering your PIN in a shop or a cash machine use your free hand to shield the number from prying eyes or hidden cameras.
• Only divulge your card details in a telephone transaction when you have instigated the call and are familiar with the company.
• Make sure your computer has up-to-date anti-virus software and a firewall installed.
• Register your cards with Verified by Visa or MasterCard SecureCode.
• Access internet banking or shopping sites by typing the address into your browser. Never go to a website from a link in an email and then enter personal details.
• Shop at secure websites by ensuring that the security icon (locked padlock or unbroken key symbol) is showing in your browser window.
• Always log out after shopping and save the confirmation email as a record of your purchase.

7 The National Fraud Strategic Authority, an agency of the Attorney General’s Office that will work with private, public and third sector organisations to initiate, co-ordinate and communicate counter-fraud activity across the UK economy, is officially established today, 1 October.

Bradley James Group

Tuesday 30th September 2008
Payments industry reveals growth in 'money mule' fraud activity

• More than 870 recruitment adverts for money mules detected in first half of 2008
• Consumers urged to avoid being duped into helping fraudsters
• Online guide launched offering help and advice

APACS, the UK payments association, has today (25 September 2008) revealed the increasing number of ‘money mule’ recruitment adverts detected in the UK and reminded consumers of some simple rules to avoid being duped into helping criminals transfer money out of the country. Recruitment adverts for money mules are becoming more common with the latest APACS data showing 873 detected fake ‘job’ adverts in the first half of 2008, up 345 per cent over the last three years, and 33 per cent on last year.

A "money mule", or "money transfer agent" as it is sometimes called, is someone recruited by fraudsters needing to transfer money from one country to another. As most fraudsters are located overseas and it is not possible to make cross-border transfers from most online bank accounts in the UK, a money mule is required to launder the money. After being recruited by the fraudsters, money mules receive funds into their accounts and they then withdraw the money and send it overseas using a wire transfer service, minus a certain commission payment.

Number of mule recruitment adverts* by month Q1 2005 – Q2 2008-08-20

* These are calculated according to each time a new fake ‘job’ advert is detected. Such scams may appear as spam emails, spoof websites, adverts on real job recruitment websites or even in national newspapers.

To help consumers avoid getting caught up in scams of this nature, APACS has launched an advice guide explaining how criminals go about recruiting people to transfer fraudulent funds abroad and the consequences of getting involved in this type of scam.

The guide is available to download from www.apacs.org.uk and www.banksafeonline.org.uk
Sandra Quinn, director of communications at APACS, says:
"Criminals clearly aren’t giving up and are turning to new and more sophisticated methods of transferring fraudulent funds out of this country.

"We urge consumers to be cautious about any unsolicited offers or opportunities offering the chance to make some easy money.

By allowing your bank account to be used to receive and transfer funds, you will be acting illegally, even if you have had nothing to do with the actual theft of funds from another person’s account. If you see an opportunity to make some easy money and the offer seems too good to be true, then it probably is!

"Anyone who has disclosed their bank account details or received funds into their account for what they think could be a money mule scam should contact their bank immediately.”

APACS advice to consumer to help minimise their chances of being a victim is:

• Be cautious about any unsolicited offers or opportunities offering you the chance to make some easy money.
• Be especially wary of offers from people or companies overseas as it is harder for you to find out if they really are who they say they are.
• Take steps to verify any company which makes you a job offer and check their contact details (address, phone number, email address and web site) are correct and whether they are registered in the UK.
• Never give your bank details to anyone unless you know and trust them.

Further help and advice about preventing online banking fraud is available at www.banksafeonline.org.uk.

ENDS

Notes to editors:
1 Case study
David is a student at a British university**. Like many students he is often short of cash and on the lookout for ways to earn some extra money. Also, like most students, he spends a lot of time on the internet and has come across what looks like the answer to his problems in an email that appeared in his inbox. The email appears to be from an overseas company that wants to expand into the UK and is looking for employees to work from home.

All the company needs David to do is to provide his bank account details, so that they can put money into it from their customers. Then all David has to do is take the money out and send it overseas using a wire transfer service. In return David gets to keep a percentage of all the money that goes through his account.

David thinks this sounds like a lot of money to be paid for not much effort, so he decides he'd better make sure that the company is above board. Luckily the email contains a link to the company's website. David goes to the site, which looks very slick and professional, so he decides to take them up on their offer. As requested, David gives the company all his personal details, including copies of his driving licence and passport, as well as his banking details. They even send him an employment contract to sign. Quickly, the money starts arriving into his account along with instructions to take it out of his account as fast as possible - as cash - and to send it on to a third party via a wire transfer agency office.

A few days later David’s bank gives him a call. It transpires that the money coming into his account was all stolen, and the bank wants it back. David explains that he has sent it all to eastern Europe, to a representative of the company he is working for, and offers to put the bank in touch with the company he is working for.

However, the company doesn't reply to his emails any more, and the phone number and website seem to have stopped working. David realises he has absolutely no idea how to get in contact with who he was dealing with.

This is because the company never really existed and was just used as a front by the fraudsters, who recruited David in order to turn him into a ‘money mule’. As a consequence the bank has closed David’s account and is taking whatever money is left in it to repay the victims whose fraudulently-obtained money David was laundering. Furthermore the police have informed David that he may be charged with being an international money launderer and advised him that all the personal information he gave to the fraudsters might be sold on to identity thieves who could use it to impersonate him to commit other crimes in future.

This is not exactly the dream job he had in mind.

For more information on money mules and how to avoid becoming one, see Bank Safe Online, the advice website set up by the UK banking industry to provide advice on safe internet banking:
http://www.banksafeonline.org.uk/moneymule_explained.html

2 APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues.

We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and the new Faster Payments Service launched on 27th May for online/phone banking transactions and standing orders. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses.

** This case study is based on a real-life example. However, David is a fictional character and not available for interview.

Bradley James Group

Monday 22nd September
Major increase in volume of cards signed up to tackle online shopping fraud

· More than 25 million credit and debit cards now signed up to secure online payment systems Verified by Visa and MasterCard SecureCode - an increase of nearly 600% in the past two years
· Over 1.5m cards registered every month – an increase of 650% compared with two years ago
· Payments industry continues to encourage cardholders to sign up and make their cards safer when shopping online

Figures released today (22 September 2008) by APACS, the UK payments association, reveal that more than 25 million UK-issued debit and credit cards have now been registered with MasterCard SecureCode and Verified by Visa – online payment systems that make cards more secure when shopping on the internet.

Cardholder registration with these schemes has increased by 150 per cent in the last twelve months - from 10 million registered cards in August 2007, and by nearly 600 per cent in the last two years - from 3.6 million registered cards in August 2006.

Using these services is quick and easy. Cardholders sign up and choose a private password, which they then use when shopping online at participating retailers.

This provides cardholders with:
· Greater protection against the unauthorised use of their card for online purchases
· A straightforward and hassle-free service that fits neatly into the familiar online buying process.
· Enhanced online security without the need for any additional software

The latest figures also show that over 1.5 million cardholders are registering their cards with these secure online payment systems every month, up from a figure of 200,000 per month two years ago - an increase of 650 per cent.

Cardholders can sign up to Verified by Visa and MasterCard SecureCode at the website of the bank or card company that issues their card, or when they are shopping at participating merchants. More and more online retailers are introducing these secure systems, and those that have currently handle approximately one third of the value of all the UK’s online shopping.

Sandra Quinn, director of communications at APACS, said:
“Shopping online is now very much part of our everyday life and it is excellent news that more than 25 million cards have registered with MasterCard SecureCode and Verified by Visa.

This is an important milestone as it means that more than half of all online shoppers have now registered their cards. The banking industry continues to urge those cardholders not yet signed up to do so, as we all need to play our part to make life harder for online shopping fraudsters.”

For further information about Verified by Visa and MasterCard SecureCode please visit www.shopsafeonline.org.uk which details how to sign up to these systems and contains a free-to-download Paying Safely Online advice guide.

Later this year APACS will also launch a new campaign, designed to help protect cardholders from fraudsters when shopping online in the run-up to Christmas. This campaign will help inform consumers how they can ‘Be Card Smart Online’.

ENDS
For further information contact the APACS Press Office on 020 7711 6251
Notes to editors:
1 APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and the new Faster Payments Service launched on 27th May for online/phone banking transactions and standing orders. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses.

2 Online shopping card fraud losses on cards is part of the card-not-present fraud total of £290.5 million. In 2007 the amount of card-not-present fraud that took place over the internet is estimated at £223.8 million – 77% of total card-not-present fraud losses. This figure has gone up by 45% from 2006, when internet losses were £154.5 million and accounted for 73% of card-not-present fraud losses.

Bradley James Group

Monday 18th August 2008
APACS responds to latest CPP release

In their latest release dated 22 August, ‘Forecast is hot for fraud this Bank Holiday’, CPP offers incorrect information when claiming that Spain and France are “… the top spots where Brits fall victim to card theft”.

Our latest statistics, provided directly by our member banks, show that fraud in France on UK issued cards has decreased by £4.3million(1) in two years, and France has dropped to fourth place for where fraud on our cards is committed.

This is a direct result of the French introducing the same global chip and PIN system that we are using in the UK. Equally, fraud in Spain has fallen by £3.9 million since their rollout.

The CPP release focuses on fraud that takes place abroad but the fact is that the majority of this type of fraud occurs when card details are stolen in the UK, and used fraudulently abroad.

Fraudsters copy the magnetic stripe details, typically by skimming cards, then create fake magnetic stripe cards that they use overseas in countries that do not have chip and PIN.

Therefore it is vital that cardholders are always careful with their cards - treating them as safely as they would their cash, whether they are abroad or at home. However, as the rest of the world upgrades to chip and PIN, it will become increasingly difficult for fraudsters to use fake cards overseas.

If you are going abroad with your plastic cards APACS would advise cardholders to:

• Make sure you have your card company’s 24-hour contact phone number
• Make sure your card company has up-to-date contact details for you, including a mobile number

APACS has issued an advice guide entitled Using your plastic overseas. This guide is freely available for download from www.apacs.org.uk, www.cardwatch.org.uk and www.choosingandusing.com

ENDS

For further information contact the APACS Press Office on 020 7711 6316

Notes to editors:
APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and the new Faster Payments Service launched on 27th May for online/phone banking transactions and standing orders.

We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses.

(1) 2007 fraud figures show that fraud abroad is highest in USA (£24.6m) followed by Italy (£9.6m), Australia (£8.2m), France (£7.3m) and Spain (£5.7m).

Bradley James Group

Thursday 24th July 2008.
Number of people banking online increases more than 500% in past seven years

• Over half of all internet users now bank online
• APACS issues security advice guide to help consumers avoid becoming a victim of online banking fraud
• Number of phishing scams continues to increase

Figures released today (24 July 2008) by APACS, the UK payments association, show that the number of adults using online banking has increased by 505% in the past seven years from less than 3.5 million in 2000 to just over 21 million last year.

Online banking is a safe and secure way for consumers to access their bank account, and the chances of becoming a victim of online banking fraud are very low – the industry’s 2007 fraud figures reveal a year-on-year drop of 33% in online banking fraud losses. However, criminals continue to target online banking customers through phishing and spyware* scams, because the banks’ own systems have proved difficult to attack.

Phishing attacks have become far more frequent this year with the latest APACS data showing more than 20,000 reported phishing incidents in the first half of 2008 – an increase of more than 180 per cent from the same period last year*.

APACS has published a Banking Safely Online advice guide to help remind online banking customers of the need to stay vigilant and follow simple safety procedures when banking online.

The guide is freely available to download from www.cardwatch.org.uk and www.banksafeonline.org.uk.

The Banking Safely Online guide also includes useful information about the most common types of online scam and how to avoid falling victim to them:

• One easy way to spot a phishing email is that, because fraudsters only have very limited information such as people’s email addresses, phishing emails are usually addressed to ‘Dear valued customer’ rather than to you personally.
• Don’t try and hit back at fraudsters by replying to phishing emails and either deliberately providing bogus information or letting the sender know that you are aware it’s a scam – by doing so you are putting your PC at risk of attack from malicious computer viruses.
• Banks never send emails asking their customers to disclose PINs, login details or complete passwords - most fraud on online bank accounts involves a customer being duped into giving away their passwords and security information.
• Be wary of unsolicited emails offering you the chance to make easy money simply by transferring funds in and out of your online bank account. The funds you receive into your account will probably be fraudulently-obtained, and by passing them on you will be laundering the money, which is illegal.

Sandra Quinn, director of communications at APACS, says:
"Online banking has changed the way we access our bank accounts, and is now second nature to many of us. The fact that the number of people banking online now exceeds 21 million is testament to how easy, convenient and safe this way of banking is.

"In the future we expect more and more people to use online banking to make payments rather than just checking balances, particularly in light of the recent introduction of the new faster payments service. This enables customers to make one-off payments over the internet or by phone within hours, not days.

"However, we strongly urge banking customers to make sure they remain wary of online scams such as unsolicited emails claiming to be from their bank, and to only use a fully protected PC with regularly updated anti-virus software and a firewall installed and switched on.”

For further information contact the APACS Press Office on 020 7711 6316
Notes to editors:

1 APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and online/phone transactions. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses. Further information and advice for consumers and retailers regarding how to avoid being a victim of all types of card fraud is available at www.cardwatch.org.uk.

2 Number of reported phishing incidents** targeted against UK banks and building societies Q1 2006 – Q2 2008

** In a single phishing incident, thousands or even million of emails are sent out by fraudsters, typically trying to convince people to click on a link that will send them to a fake website. The criminals’ objective is to fool people into thinking it is a genuine site so they will enter their online banking security information.

3 Online banking fraud losses
In 2007, total losses for online banking fraud were £22.6 million – a decrease of 33% from 2006, when they totalled £33.5 million.

4 Spyware is a type of computer virus that can be installed on your computer without your knowledge. It is capable of monitoring your PC activity, enabling fraudsters to capture your passwords and other personal information. To make sure you don’t become a victim of spyware, make sure you have up-to-date anti-virus and anti-spyware software installed. Seek technical support as soon as possible if your computer starts acting oddly.

Bradley James Group

Tuesday 15th July 2008
APACS responds to latest Moneysupermarket release

In their latest release dated 09 July, ‘Britain's credometer reaches boiling point’, Moneysupermarket claims that “the average credit limit of cardholders is £8,234”, which, added collectively, amounts to over £250 billion.

This claim is based on an opinion poll of 2,000 people, as opposed to industry-wide robust figures that APACS makes freely available.

Moneysupermarket does refer to our figures when citing that there are 30.8 million cardholders in the UK – a figure that actually declined by 600,000 last year. However, they refrained from using our statistics when providing their figure on credit limits.

Our statistics confirm that the average credit card limit is £5,129; although we are actually seeing people, on average, use only £1,384 of their available limit. These statistics expose the weaknesses of Moneysupermarket’s claim.

On closer inspection of the credit card lending statistics, the picture that actually emerges is that credit card credit outstanding has fallen by a net of £2.6 billion, or 4.6%, since it reached its peak of £58.2 billion in 2006.

This is due to cardholders becoming more mindful of making repayments, a fact which is reflected in the high repayment levels, which currently stand at 97%.

Bradley James Group

Tuesday 1st July 2008.
Debit cards continued to be consumers’ first choice during 2007

2007 plastic card data show:
· £354 billion spent on plastic cards in the UK in 2007
· Debit card spend accounted for 62 per cent of total plastic card spend

APACS’ latest publication The Way We Pay 2008: UK Plastic Cards shows that in 2007, for the 7th year running, debit cards continued to dominate consumer card spending, accounting for 62 per cent of the total plastic card spending during the year.

UK plastic card payments to UK merchants, retailers and service providers totalled £354 billion in 2007 – over three times the amount of ten years ago (£103 billion in 1997) and a 10 per cent increase on the 2006 figure (£321billion).

UK consumer spending(1) by value

Sandra Quinn, director of communications at APACS, said: “Over the past 3 years we’ve seen a pattern emerge: debit cards have increasingly become consumers’ first choice over other options, such as cash, cheques and credit cards.

And whilst these figures are for last year, surprisingly despite lots of speculation, all the early indications from our figures so far for this year show that there has been no sudden spike in credit card spending. In fact, credit card spending up until the end of May increased by only 1.2% – below the rate of inflation, and the average value of a credit card purchase in a supermarket has actually fallen by £1 to £34.33(4).

"Interestingly the report also shows that last year debit cards even gained ground in areas where credit cards have traditionally had a firm hold – particularly on the internet. We would, however, continue to remind customers that because of the additional consumer protection benefits credit cards provide, you may find a credit card to be a more sensible choice online.”
The £354 billion spent on plastic cards during 2007 equated to 31% of total consumer spending in the UK, with the remaining £771 billion made up of cash, automated payments and cheques.

Debit cards were used to make 4.9 billion purchases in the UK, and by 2017 it is projected that there will be around nine billion debit card payments. Over the last decade debit card spending has increased five fold from £45 billion in 1997. This upward trend is expected to continue, by 2010 personal spending by debit card is expected to overtake personal spending by cash, and by 2017 it’s expected to reach £469 billion.

During 2007 credit and charge cards were used to make 1.9 billion purchases in the UK to a value of £133 billion – an increase of 6% per cent on 2006 figures. This rise in credit card spending did not lead to any increase in borrowing as the amount of credit card credit outstanding fell by £1.1 billion during 2007(5).

For information on how to order a copy of The Way We Pay 2008: UK Plastic Cards and details of other APACS publications available to purchase, please visit www.apacs.org.uk/publications.html

ENDS
For further information contact the APACS Press Office on 020 7711 6316
Notes to editors:

APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and the new Faster Payments Service launched on 27th May for online/phone banking transactions and standing orders. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses.

(1)Consumer spending includes all payments made by consumers with debit cards, credit cards, cheques and automated payment methods.

(2)Automated payments include Direct Debits, Bacs Direct Credits, other phone and internet banking payments, and standing orders.

(3)Our statistics indicate that personal cheque values changed little last year; personal cheque payment volumes have however fallen by 10% over the same period.

(4)The average value of a credit card purchase in a supermarket during the first five months of 2008 was £34.33, compared with £35.57 for the same period of 2007.

(5)Bank of England figures

Bradley James Group

Friday 6th June 2008.
Standing order payments rollout starts through new Faster Payments Service

Millionth payment to be made through Faster Payments Service today

APACS, the UK payments association, has today (6th June 2008) confirmed the start of the Faster Payments Service for standing order payments. Following the introduction of the new service for telephone and internet payments at the end of May, standing orders will now start to be processed through the new infrastructure, enabling the payments to clear on the day they are sent, on bank working days.

As with internet and phone payments the rollout will be gradual, but it is expected that the majority of standing orders will be processed faster through the new service by the end of the year. Any payment not made through the new service will continue to be processed through the existing Bacs three-day service.

For the first time, instead of taking three days to clear, the Faster Payments Service will enable standing orders to reach the recipient on the same day, providing it is a bank working day and the payment is under £100,000. Standing orders are typically used to make regular charity donations or subscriptions, for regular payments for life insurance or endowment policies, and to make regular contributions to a savings account.

Customers don’t need to do anything, but if they have a regular standing order payment, for instance to a landlord, which needs to arrive on a set date, they may wish to change it, so rather than the funds arriving early they remain in their own account for a couple of days longer. For regular payments to a savings account, there is no need to make any change to the arrangement; in fact the customer will benefit from earning extra interest as a result of the payment reaching a savings account more quickly. If customers are not sure when their own bank is rolling out standing orders on their account, they should check with their bank directly.

The introduction of the Faster Payments Service for standing orders comes following the successful start for the rollout of the service for telephone and internet payments. Since the introduction of the service, 885,719 payments have been made, to a total value of £522,383,231.

The millionth payment is expected to be processed by the last settlement period today, 6th June.

ENDS

For further information contact the APACS Press Office on 020 7711 6316.

The thirteen founding members are: Abbey, Alliance & Leicester, Barclays, Citi, Clydesdale and Yorkshire Banks (National Australia Group), Co-operative Bank, HBOS, HSBC, Lloyds TSB, Nationwide Building Society, Northern Bank (Danske Bank), Northern Rock, Royal Bank of Scotland Group (including NatWest and Ulster Bank). VocaLink, a separate service company, is providing the infrastructure for the Faster Payments Service.

Currently internet and phone payments account for just 2% of interbank automated payment volumes, but these are growing rapidly as customers increasingly turn to them instead of more traditional payment methods such as cheques. Standing orders account for 6% of interbank automated payments.

The new system is being built to cater for the large volume increases projected for the future. The remaining 92% of interbank automated payments are 'bulk' transactions generated by organisations and businesses both large and small and are: Direct Debits, used to pay utility bills, life and general insurance premiums and various subscriptions; Bacs Direct Credits, used for salary payments, pensions, and state benefits; and CHAPS payments.

There is a maximum limit placed on the value of each payment sent through the Faster Payments Service, with the maximum value for internet and phone payments set at £10,000 and standing orders to £100,000. During this launch period some banks are adopting lower limits than those figures.

The logo for the Faster Payments Service is available on request from press@apacs.org.uk.

APACS has produced an online easy-to-use sort code checker www.canipayfaster.co.uk. Customers can input any UK sort code to check whether it is able to receive Faster Payments. More sort codes will be added over the next few months as the service is rolled out.
An animated graphic and advice guide for using the new Faster Payments Service are also available on the APACS website, www.apacs.org.uk, or from the APACS press office, press@apacs.org.uk.

Bradley James Group

Friday 30th May 2008.
Faster Payments Service debut payments pass the £200 million mark

• Over 315,000 payments to a value of £200 million processed through new infrastructure in first 3 days of rollout
• First day volume exceeds expectations by 300%

APACS has today (Friday, 30th May 2008) announced the volume and value figures for the first three days’ operation of the new Faster Payments Service*, launched on Tuesday27thMay.

In total, between just after midnight on Tuesday 27th May and today at 12.45pm, 318,405 faster payments have been processed to a value of £200,127,682.03. This equates to around 90,000 payments a day, 3,750 payments an hour – one every second – with an average value of over £625 per payment.

David McFarlane, CHAPS Company Manager** said: “Although we have deliberately staggered the volumes that could be pushed through the new Faster Payments Service, we are really delighted that so many customers have made use of this new payments system in its first few days of rollout. We hope that this has set us on course for more of the same and that by the end of the year we’ll see the vast majority of internet, phone and standing orders moving faster.

Of course, until the Service has been fully rolled out, any payments not using this new system will continue to be made over the existing three-day system. In the meantime if the timing and speed of any payment is important, it’s always best to double check what system your bank will use as well as following the instructions on the back of bills from any bill provider.”

ENDS
For further information contact the APACS Press Office on 020 7711 6316

* The Faster Payments Service enables banks to process one-off payments made over the internet or by phone within a couple of hours, not days, benefiting customers by speeding up the clearing of their payments. Customers are able to make internet and phone payments outside of banking hours even at the weekend.

The service will also speed up standing order payments, enabling them to be cleared on the day they are sent on bank working days. Standing orders will start to be processed through the Faster Payments Service from 6th June. Customers do not need to make any change to any payments. Any payment that is not processed through the new service will continue to be made using the existing Bacs three-day service.

The thirteen founding members are: Abbey, Alliance & Leicester, Barclays, Citi, Clydesdale and Yorkshire Banks (National Australia Group), Co-operative Bank, HBOS, HSBC, Lloyds TSB, Nationwide Building Society, Northern Bank (Danske Bank), Northern Rock, Royal Bank of Scotland Group (including NatWest and Ulster Bank). VocaLink, a separate service company, is providing the infrastructure for the Faster Payments Service.

** CHAPS Clearing Company manages two same-day payment schemes operating in the UK:

-CHAPS Sterling processing high-value payments settled in real-time
-Faster Payments processing internet and phone payments and standing orders
Currently internet and phone payments account for just 2% of interbank automated payment volumes, but these are growing rapidly as customers increasingly turn to them instead of more traditional payment methods such as cheques. Standing orders account for 6% of interbank automated payments.

The new system is being built to cater for the large volume increases projected for the future. The remaining 92% of interbank automated payments are 'bulk' transactions generated by organisations and businesses both large and small and are: Direct Debits, used to pay utility bills, life and general insurance premiums and various subscriptions; Bacs Direct Credits, used for salary payments, pensions, and state benefits; and CHAPS payments.
There is a maximum limit placed on the value of each payment sent through the Faster Payments Service, with the maximum value for internet and phone payments set at £10,000 and standing orders to £100,000. During this launch period some banks are adopting lower limits than those figures.

APACS has produced an online easy-to-use sort code checker www.canipayfaster.co.uk. Customers can input any UK sort code to check whether it is able to receive Faster Payments. More sort codes will be added over the next few months as the service is rolled out.

An animated graphic and advice guide for using the new Faster Payments Service are also available on the APACS website www.apacs.org.uk, or from the APACS press office, press@apacs.org.uk.

Bradley James Group

Wednesday 28th May 2008.
FASTER PAYMENTS NOW LIVE

Payments industry marks opening of new service with £10,000 donation to Myanmar (Burma) Cyclone Appeal

APACS, the UK payments association, has today (27th May 2008) confirmed that the infrastructure for the new Faster Payments Service is now live, with payments from midnight being processed through the new system. By 7am this morning 898 payments had been made to a value of £461,383.43.

In keeping with the phased approach banks* have begun today to offer customers the facility to send or receive payments processed through the new system. By the end of the year the majority of the UK’s internet, phone and standing order payments are expected to be made using the new system.

From today, Barclays, Citi, Clydesdale and Yorkshire Banks (National Australia Group), HSBC, Lloyds TSB, Northern Bank (Danske Bank) and Royal Bank of Scotland Group are sending and receiving phone and internet payments, and Alliance & Leicester, HBOS, Nationwide Building Society and Northern Rock are receiving these payments. As part of the phased rollout, some financial institutions are placing lower initial limits on the value of payments that can be sent or alternatively they may be choosing to phase rollout across their customer accounts.

To mark the introduction of the service all thirteen founding members joined together to make a charity donation of £10,000 to Oxfam for the Disasters Emergency Committee’s (DEC) Burma Cyclone Appeal: one of the very first payments in the early hours of this morning was to the appeal; this arrived at the charity within a couple of hours rather than taking three working days as it would have done in the past.

Graham Mackay, Oxfam's Deputy Humanitarian Director said: "Oxfam is grateful to have received £10,000 toward the DEC Burma Cyclone Appeal from the payments industry. This money will help Oxfam and other members of the DEC to deliver vital aid to the many thousands of people affected by Cyclone Nargis."

The Faster Payments Service enables banks to process one-off payments made over the internet or by phone within hours, not days, benefiting customers by speeding up the clearing of their payments. Customers are able to make internet and phone payments outside of banking hours even at the weekend. The service will also speed up standing order payments, enabling them to be cleared on the day they are sent on bank working days. Standing orders will start to be processed through the Faster Payments Service from 6th June.

Customers do not need to make any change to any payments. Any payment that is not processed through the new service will continue to be made using the existing Bacs three-day service. They will be informed directly by their banks when they are able to use the service.
ENDS
* The thirteen founding members are: Abbey, Alliance & Leicester, Barclays, Citi, Clydesdale and Yorkshire Banks (National Australia Group), Co-operative Bank, HBOS, HSBC, Lloyds TSB, Nationwide Building Society, Northern Bank (Danske Bank), Northern Rock, Royal Bank of Scotland Group (including NatWest and Ulster Bank). VocaLink, a separate service company, is providing the infrastructure for the Faster Payments Service.

Currently internet and phone payments account for just 2% of interbank automated payment volumes, but these are growing rapidly as customers increasingly turn to them instead of more traditional payment methods such as cheques. Standing orders account for 6% of interbank automated payments.

The new system is being built to cater for the large volume increases projected for the future. The remaining 92% of interbank automated payments are 'bulk' transactions generated by organisations and businesses both large and small and are: Direct Debits, used to pay utility bills, life and general insurance premiums and various subscriptions; Bacs Direct Credits, used for salary payments, pensions, and state benefits; and CHAPS payments.

There is a maximum limit placed on the value of each payment sent through the Faster Payments Service, with the maximum value for internet and phone payments set at £10,000 and standing orders to £100,000. During this launch period some banks are adopting lower limits than those figures.

Bradley James Group

Friday 23nd May 2008.
Press Release

COUNTDOWN TO ROLLOUT OF UK'S NEW PAYMENTS SERVICE

- Consumer advice issued in advance of the launch on Tuesday 27th May

- Final week testing completed with penny transactions between banks

With just a few days to go until the launch of the new Faster Payments Service, APACS, the UK payments association, has today (22nd May 2008) issued new materials to help customers wishing to benefit from the service, as it begins its rollout on 27th May.

APACS has produced a new, downloadable advice guide, How to use the Faster Payments Service, along with an online easy-to-use sort code checker www.canipayfaster.co.uk. Customers can input any UK sort code to check whether it is able to receive Faster Payments. More sort codes will be added over the next few months as the service is rolled out. All these materials are available from www.apacs.org.uk.

In readiness for the launch of the new service on 27th May, over the last week participating members of the new Faster Payments Service have been making live transactions through the new infrastructure, sending and receiving payments in pennies. This final stage of testing comes at the end of extensive testing in a non-live environment.

Paul Smee, APACS Chief Executive says:

“The final part of this enormously complex project has been to test the new system in a live environment. This week hundreds of penny payments have successfully been made between the participating banks.

The Service is now ready to start being rolled out to customers next T