More businesses in the UK are turning to the bacs payment service to handle their financial transactions. In fact, 6.22 billion direct debit and Bacs direct credits were processed in 2016 alone. But, what is bacs?
Bacs stands for Bankers’ Automated Clearing System, its former name. It is operated by an organisation that is made up of many or the leading banks and building societies in the UK. This system is a solution widely used in the UK to transfer payments quickly and securely. As your business continues to grow, so does the need to process financial transactions effectively and efficiently.
If you are not yet sure if bacs payments services are right for your company, here are five top benefits to using this service.
#1: Process Payments Securely
The bacs system is an extremely safe way to process payments. This system has processed over 120 billion transactions since it’s development 1968. It is known all over the world as one of the safest ways to send and receive electronic payments. According to a recent research report, despite the volume of transactions processed through bacs, it has never misplaced a single payment.
It uses the Bacstel-IP system, which is protected with SSL encryption and can provide a secure connection over any computer you use to access bacs. The system also provides a direct debit guarantee to protect customers against fraudulent activity.
#2: Reduce the Number of Potential Errors
A mistake in a financial transaction can be costly. Multiple mistakes can do damage to any company’s bottom line. Businesses can reduce the risk of these types of errors by utilising a bacs payment service. With this software, the chance of human error is reduced with data validation that is automatically downloaded into a Bacs reconciliation report for your back office. These reports can be checked regularly ensuring that your company is safe from costly errors.
#3: Closely Monitor Payment Activity
Businesses can easily monitor any payments coming in or going out of the business through the bacs payment service. All payment activity can be closely monitored and viewed online. Through bacs, payments are processed rapidly and electronic confirmations sent out to confirm that payment was received. This feature allows businesses to stay on top of all their transactions if they choose to do so. It also gives business owners peace of mind knowing that they can monitor activity whenever they need to.
#4: Cost-effective Way to Send and Receive Payments
Bacs payment service is an extremely inexpensive way to collect payments, often costing just a few pennies per transaction. While there may be a few upfront costs such as the bacs payment software to get going with this system, it is highly cost-effective in the long run. You will also have the capability to collect faster payment than the standard three day bacs transfer time period by paying a little extra.
#5: Stay in Control of Financial Matters
As a business owner, staying in control of the financial matters is crucial to business growth. By utilising the bacs payment service, it is much easier to stay on top of the money coming in and going out of your business. You can feel confident that payments made and received will be processed securely over the Bacstel-IP system. And, you can keep close watch of your financial transactions by monitoring them online.
With data reconciliation capability, you can check for errors and catch any before they become costly. Plus, you can choose the types of transactions you want to use such as direct debit, bacs direct credits, and even faster payments. Bacs has many options available to suit the needs of your company.
With so many benefits, it is no wonder so many people and businesses use bacs today. According to recent statistics, nine out of ten residents of Great Britain have at least one direct debit account, and bacs processes 109.3 million transactions every single day. If so many are choosing to utilise this service, will your company be left behind if you do not?
For fast, secure financial transactions that your company can closely monitor, the bacs payment system is the best solution to help you stay in control of your financial matters.