How to Easily Manage Your BACS Transfers
Bankers’ Automated Clearing Services (BACS) is a payment system that is used to process different forms of electronic payments. The central payment systems cater to Direct Debits and Direct Credits. Such a system can be used by businesses to process pensions, tax credits, payroll, state benefits, etc.
Before the rampant popularity of Faster Payments, BACS was the popular payment process in the United Kingdom to make online, phone or physical payments.
With BACS, you can opt for Direct Debit and Direct Credit offering greater convenience to businesses enabling them to make transaction directly to the bank account electronically. This way all transactions irrespective of their nature are processed using BACS.
If you intend to make a transfer using BACS, you will be directed via BACS where your payment will be processed electronically. This means if you plan to transfer money from a bank account, your transaction will be governed directly via BACS. However, the only catch associated to BACS payments is that the processing time can be daunting for those who desire immediate payments. Generally, BACS payments take 2 working days to process. Therefore, if you are short on time BACS may not be the right choice for you.
How to Access BACS?
In order to process a payment, there are two distinct ways enabling you to submit your data to the BACS Bureau. The ideal processing method will depend on the requirements and available resources of your business.
Indirect Access: Such payments are governed by a bank for those who do not have access to a number of resources. The data can be acquired by a bank via telephone, online or fax. Moreover, you can also leverage from additional services such as the processing of payslips and payrolls. You can acquire information pertaining to the suitable option from your bureau or bank.
Direct Access: Direct submissions are a convenient and faster way to process your payments to a BACS bureau. The method is known for its cost efficiency and the ability to process payments in bulk. Such a technique involves the usage of KPI technologies and access is governed on the basis of Bacstel-IP. For this, you will require a PC, access to the internet, serial port and BACS approved software which you can find here.
How Is Processing Governed Via BACS?
- The first day of the BACS payment is known as Input Day. This day a bank submits a payment file to BACS Bureau for processing. The payment file needs to be submitted within the working hours of the bureau.
- The files are sent to the recipient’s bank which then works on processing the payment. This day is referred as the Processing Day.
- The third day is when the payment is credited in the recipients account and debited from your bank account. It is known as the Entry Day.
BACS gives you immense control over the transactions you make. You get the ability to decide when to process each payment. Businesses can give payment instruction 30 days in advance of the payment date offering greater flexibility. Furthermore, you can also opt even after your payment file has been submitted to the bank provided it is within the cut off time.
Why Choose BACS?
The BACS payment system is known for its security. Many businesses use BACS for the unmatched convenience and secure financial environment it offers. Moreover, financial institutions add extra layers of security to ensure that the transactions are processed safely.
As a business, BACS is ideal for you as the type of security you get is directly proportional to the type of payment you make. Thus, only businesses that have been approved can collect the payment. Further, if a mishap takes place you can seek protection under the Direct Debit Guarantee offered by BACS.
Direct Debit Guarantee offers protection to all business. Thereby, if an unauthenticated transaction occurs you are liable to opt for an immediate refund. An unauthorised payment is one where the consent of the account holder is not acquired. If a scam occurs or a fraud gets access to your account, you will leverage from a refund. However, if an approval has been granted no compensation is given whatsoever. Moreover, claims can be made within 13 months of the transaction giving businesses substantial time to make claims.
BACS is a primary and most commonly used payment system by businesses since decades. The popularity of the system increases the usability of the payment system. If you want to make payments via BACS you can render the services of a bank, bureau or a bacs approved system.