There are a lot of different payment options available to today’s consumers. From modern options like cryptocurrency and open banking payments to traditional cheques and direct debits, each has its place as well as its pros and cons.
One factor often considered by users is the speed of transactions. Transaction speed is determined by the payment system as well as the sender and recipient’s location. Below, we look at the most common payment types and their typical processing speeds.
Cryptocurrency
Cryptocurrency and the blockchain technology that it uses has the potential for near-instant payments. As such, it is gaining popularity with private sellers and ecommerce stores, as well as individual users. Online casinos in the UK also commonly accept cryptocurrency like Bitcoin, Dogecoin, Tether, and others for faster withdrawals according to tech editor Bram Welch. However, the actual time it takes for a withdrawal to reach your wallet can still depend on the casino’s processing frequency.
Digital Wallets
Digital wallets include Google, Apple, PayPal, and Skrill’s products. Users do need to sign up and most digital wallets cannot be used for typical banking purposes, which means you still need to deposit or withdraw funds to and from the wallet, but sending and receiving payment using this method is usually instant.
Open Banking
Open Banking is a system that allows API access to customer financial data. This speeds up payment processing times, and transfers typically arrive within the receiving account in a matter of seconds. However, this does depend on the retailer or sender’s payment processes. Some companies batch-process payments or wait until a set time before they send payments.
Faster Payment
The Faster Payment System is an initiative between most UK banks and financial institutions designed primarily to speed up payment times and improve on the traditional BACS payment. Most bank transfers between UK customers are now sent on the Faster Payment network, although the system is not available for international payments.
Direct Debit
A direct debit uses the BACS payment system, which operates on a three day cycle. This means that payments take at least three days, although it can take five days or more to set up a new direct debit instruction. Direct debits are most commonly used for recurring payments and, strictly speaking, are the opposite of a bank transfer because the recipient requests the money, rather than the sender sending it.
International Bank Transfer
International Bank Transfers are sent using the SWIFT payment network. The network doesn’t actually send funds but sends details of the transfer, and it can make several stops along the way, as payments are processed and sent in batches. These transfers can take anywhere from a couple of days to a week, although it might be possible to pay a premium for a quicker transfer.
Credit Card
Making payment with debit or credit cards means instant processing for the buyer, but it can take between one and three days for the recipient to receive the money in their account. Payment times do vary according to the payment gateway used, as well as the individual accounts, and credit cards typically take a little longer than debit cards to process.
Cheque
Although there had been plans to shut down the cheque clearing system in the UK, it has since been announced that cheques will continue for as long as bank customers need them. However, they are used infrequently, and even with the faster processing times now available, it still takes two or three days for cheques to clear, making it one of the slowest payment options available.
