The UK banking industry has launched a retry system that gives customers a second chance to avoid bounced payments and their associated charges.
According to the Payments Council, the process will take effect from 1 September, giving users a chance to pay cleared funds into their account by 2pm the same day, and thereby allowing retried payment to be successfully processed the second time around.
Seven of the UK’s biggest banks have already been using a retry system since June 2013, following an agreement with the Financial Conduct Authority (FCA).
With the new initiative, a total of 29 financial services organizations will offer the option.
The Payments Council communications and education director Jemma Smith said: "The introduction of the retry process helps to give customers more control when it comes to meeting their financial commitments.
"This new process acts like a safety net for those situations when you might not have enough money in your account, giving you a chance to put things right by paying in cleared funds.
"However, if you find yourself regularly taking advantage of the retry process, I’d strongly recommend reviewing the timing of your payments so that they leave your account on a more suitable day."
