Guide to bank transfers: use cases, safety tips, and more

Bank transfers are one of the most common ways to send money in the UK. Whether you’re paying a bill, sending money to a friend, or moving money between your own accounts, most transfers are quick, simple and secure once you know how they work.

While bank transfers are usually safe, it’s important to check the details carefully before you send money. Once a payment has been made, it can sometimes be harder to get your money back if there’s a mistake or suspected scam.

In this guide, we’ll cover how to do a bank transfer, how long bank transfers take, and the different types of payments you might come across. We’ll also share tips to help you stay safe and explain what to do if something goes wrong.

What is a bank transfer?

A bank transfer is a way to move money electronically from one bank account to another. You can usually make a transfer using mobile banking, online banking, over the phone, or in branch.

People use bank transfers every day for things like paying bills, sending money to friends or family, or moving money between accounts.

How does a bank transfer work?

When you make a bank transfer, your bank securely sends money from your account to another account. The process usually works like this:

You enter the recipient’s details (including their account name, account number, and sort code)
Your bank checks the payment information
The payment is sent through a payment system such as Faster Payments*
The receiving bank processes the payment
The money clears and becomes available in the recipient’s account

Remember: A payment being “sent” does not always mean it has fully “cleared”. A transfer is only cleared once the receiving bank has processed it and the money is available to use.

*Most UK bank transfers use Faster Payments, which means that money often arrives within minutes. Some payments can take longer depending on the bank, the transfer type, or additional security checks. For international payments, you may need extra information, including:

Payment reference
IBAN (International Bank Account Number)
BIC or SWIFT code

If you’re a TSB customer and need to make a payment abroad, view our help page for international payments.

What’s the difference between a wire transfer and a bank transfer?

In the UK, the term “bank transfer” usually means domestic payments made using systems like Faster Payments, BACS, or CHAPS. These are commonly used for sending money between UK bank accounts and are often quick and low cost.

You might hear the term “wire transfer” used when talking about international payments. These transfers are normally sent through international payment networks such as SWIFT.

International wire transfers can take longer because the payment may pass through more than one bank before it reaches the recipient. In some cases, intermediary banks may also charge fees.

Personal vs. business bank transfers

Personal bank transfers are commonly used for everyday payments. This includes scenarios like:

Sending money to friends or family
Paying rent or household bills
Moving money between your personal and savings accounts
Paying for goods or services

Business bank transfers are often used to pay employees, suppliers, or other businesses. These payments may involve larger amounts or happen more regularly. Business payments can sometimes include extra checks or approval steps, especially for high value transactions.

There’s also a difference between sending money and collecting money. For example, a bank transfer is when you send money directly from your account. A Direct Debit allows a company to collect money from your account with your permission.

In general:

Personal transfers are usually smaller and simpler
Business transfers may involve larger amounts and additional checks
Business accounts may have different payment limits or approval processes

Different types of bank transfers

There are several types of bank transfers in the UK. The main ones are Faster Payments, CHAPS, and BACS.

Each payment type works slightly differently and is designed for different situations. Some are designed for speed, while others are better for scheduled or high value payments.

Faster Payments

Faster Payments are one of the most common ways to send money in the UK. They’re designed for quick everyday payments and are available 24 hours a day, 7 days a week.

Most Faster Payments arrive almost instantly, although some can take up to 2 hours depending on the bank or security checks.

People often use Faster Payments to:

Send money to friends or family
Pay bills
Move money between accounts
Make everyday payments

Faster Payments are normally used for smaller transfers, although payment limits can vary between banks and accounts.

CHAPS Payments

CHAPS stands for Clearing House Automated Payment System. It’s used for large or time-sensitive payments that need to arrive on the same working day.

CHAPS payments are normally processed during working hours on business days (Mon-Fri). They’re often used for:

Buying a property
Paying large invoices
Sending high value transfers

CHAPS is commonly used for payments over £10,000, although there’s no universal minimum amount. Unlike Faster Payments or BACS, banks usually charge a fee for CHAPS payments. Banks usually charge a fixed fee for CHAPS payments. At TSB, this is currently £30.

Important: Same-day payment is only guaranteed if funds are released before your bank’s daily cutoff time e.g. before 4:40pm for TSB. Please check our latest charges before making a payment.

BACS Payments

BACS stands for Bankers' Automated Clearing System. BACS payments are commonly used for scheduled or regular payments. They normally take up to 3 working days to clear.

BACS is often used for:

Salaries
Pensions
Direct Debits
Recurring payments

Although BACS payments are slower than Faster Payments or CHAPS, they’re widely used because they’re reliable and usually free. Businesses often use BACS to process large numbers of payments at the same time.

Are there any limits to how much you can send via bank transfer?

Bank transfer limits can vary depending on your bank, account type, and the payment method you use.

For example, Faster Payments often have daily transfer limits, especially when using mobile or online banking. Higher value payments may need to be sent using CHAPS instead. Limits can also vary between personal and business accounts.

Before sending money, it’s a good idea to double check the transfer limit for your account, and carefully review the recipient’s details.

How long does a bank transfer take?

How long bank transfers take depends on the payment type, the amount being sent, and the banks involved.

Here are some typical timeframes:

Faster Payments: Usually within minutes, but sometimes up to 2 hours
CHAPS: Same working day if sent before the bank’s cut-off time
BACS: Usually up to 3 working days
International transfers: Often between 1 and 5 working days

Some bank transfers may take longer if:

Extra security checks are needed
The payment is sent outside working hours
The recipient’s bank processes payments more slowly
Incorrect payment details are entered

A payment may show as ‘processing’ before it has fully cleared. The transfer is only fully cleared once the receiving bank has made the money available in the recipient’s account. This can affect how long the transfer takes.

Are bank transfers safe?

Bank transfers are generally a safe way to send money. Banks use security measures such as encryption, fraud monitoring, and identity checks to help protect customers.

Many UK banks also use ‘Confirmation of Payee’. This checks whether the name you enter matches the account details before you send money.

Confirmation of Payee can help reduce mistakes and prevent some types of fraud. For example, it may warn you if the account name doesn’t match.

Even though bank transfers are usually secure, scams and payment mistakes can still happen, so it’s important to be aware of the potential risks, which we explore next.

Bank transfer scams and fraud

Bank transfer scams happen when fraudsters trick people into sending money to the wrong account. Common examples include:

Impersonation scams, when someone pretends to be your bank or a trusted organisation
Invoice fraud, when fake payment details are provided
Purchase scams, when fraudsters trick you into paying for goods or services that never arrive, or aren't as described
Investment scams, when you’re promised high returns or low-risk opportunities that don’t exist

Criminals often try to create pressure or urgency so people rush into making payments. Bank transfer fraud can sometimes be harder to reverse than card payments because the money is sent directly between accounts. To help protect yourself when paying by bank transfer:

Double check the account details
Avoid making payments in a rush
Be careful with unexpected payment requests
Contact the person or business using trusted details if something seems wrong
Never share security codes or passwords

For more advice on how to protect yourself against scams, visit our Fraud Prevention Support Hub, or get quick tips in our guide to keeping your money safe.

What to do if something goes wrong with a bank transfer

If you think you’ve sent money to the wrong account or you may have been targeted by fraud, contact your bank straight away. The sooner you act, the better, since this can improve the chances of recovering your money.

When you get in touch with your bank, ensure that you have the following information ready:

The exact payment amount
The date and time of the transfer
The recipient’s details
Any messages or emails linked to the payment

If fraud is involved, your bank may also ask you to report the scam. TSB customers can get support with bank transfer fraud on our Transaction Troubleshooting page.

Can a bank transfer ever be cancelled?

Unfortunately, most bank transfers cannot be cancelled once they’ve been sent.

Recovery is not guaranteed, especially if the payment has already cleared or been withdrawn from the receiving account. However, in some situations, a payment may still be stopped if it has not yet been processed by the bank.

Contact your bank immediately if you notice a mistake, and they will do their best to help you recover the funds where possible.

Final tips

Bank transfers are usually quick, simple and secure, but it’s important to stay alert to scams and payment mistakes. If something doesn’t feel right, stop and check before transferring any money.

For more support with bank transfers or accounts with TSB, visit our Help Centre or Contact Us.