UK Payments Administration (UKPA)
The UK Payments Administration (UKPA) was an organization established in 2009 as the successor to the Association for Payment Clearing Services (APACS), which was set up by UK banks in 1985. The primary role of UKPA was to manage the payment clearing and overseas money transmission systems in the United Kingdom. It provided various essential services and facilities to its four main operating companies, ensuring the smooth operation and modernization of the UK’s payments infrastructure.
Core Functions and Operating Companies
1. Bacs (Bankers’ Automated Clearing System):
- Handles automated interbank clearing and settlement services.
- Manages direct debits and credits in the UK.
2. Cheque and Credit Clearing Co Ltd:
- Operates a bulk clearing system for cheques and other paper instruments.
3. CHAPS Co:
- Provides high-value same-day electronic funds transfer services in both sterling and euros.
4. Faster Payments:
- Offers an express payment service that allows customers to make immediate payments via phone or online.
Collaboration with Other Organizations
- UK Cards Association: Represents the card payment industry.
- LINK: Manages the network of UK cash machines.
- VocaLink: Facilitates transaction processing and connected banking services.
Online Resources
Suggested Books for Further Studies
- “Payment Systems: From the Salt Mines to the Board Room” by George F. Nowak
- “Electronic Payments: The Digital Transformation of Data into Change” by Peter Johnson
- “The Book of Payments: Historical and Contemporary Views on the Cashless Society” by Bernardo Batiz-Lazo and Leonidas Efthymiou
Related Terms with Definitions
Bacs (Bankers’ Automated Clearing System): A system for processing direct debit and credit payments in the UK, ensuring secure and efficient transaction settlement.
Cheque and Credit Clearing Co Ltd: A company that facilitates the bulk clearing and settlement of cheques and paper-based payment methods.
CHAPS (Clearing House Automated Payment System): Provides real-time, high-value electronic fund transfer services predominantly for financial institutions.
Faster Payments: Allows for near-instantaneous electronic payments, significantly reducing the time required for transaction settlement compared to traditional methods.
VocaLink: An international payments company that designs, builds, and operates payments infrastructure and related services.
Accounting Basics: UK Payments Administration (UKPA) Quiz
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