Businesses and their customers typically seek clear affirmation that payments made between organisations and clients are 100% safe. This also encompasses the need to ensure that customer information is processed stored securely.
When making payments, customers typically have to disclose their confidential information, such as bank details or home address. Confidence that personal data will be responsibly stored and kept safe is key to ongoing consumer trust in businesses and in payment methods offered.
With consumer confidence in the UK economy rising to a three-month high during February and March 2025, opportunities are present for businesses to encourage new and existing customers to sign up to secure payment systems to pay for goods and services.
Consumers regard Bacs payments, such as Direct Debit and Direct Credit, as predominantly safe according to recent studies. A survey conducted by the Financial Services Consumer Panel found that 62% of respondents used Direct Debit, a form of Bacs payment, at least once in the last 12 months.
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Contents
- Why is Bacs payment security important?
- Are Bacs payments safe?
- How does Bacs ensure payment security?
- Interbacs provides safe Bacs payment services
Why is Bacs payment security important?
The term ‘Bacs payment’ covers two categories: Direct Debit and Direct Credit. Direct Debits occur when an organisation has authorisation from a customer to collect an agreed payment from their bank account. Direct Credits happen when an amount is paid into a person’s bank account for salary, refund, supplier or pension payments.
Security of Bacs payments is crucial because it protects enterprises and individuals from fraudulent activity and adheres to the Bacs rules. The protections provided by Bacs ensure that transactions are reliable and errors or delays are minimised.
Bacs itself reports that approximately 3.14 million organisations, such as government bodies, companies and charities, use Bacs payments regularly. In fact, around 90% of the British workforce is paid through the Bacs payment system.
High levels of security are required to ensure all of these transactions are safeguarded and that sensitive information is processed stored securely.
Are Bacs payments safe?
Simply put, Bacs payments are safe. Customers have an additional layer of security with the Direct Debit Guarantee. This protocol ensures that, if a payment is taken in error or the incorrect amount is withdrawn from a customer’s account, they have the right to a refund.
Organisations and customers alike may feel encouraged to learn that Bacs has never misplaced a payment since its inception in 1968. With this level of reliability, enterprises are able to share their confidence in this payment method with their customers to help them understand the depth of protection involved.
How does Bacs ensure payment security?
Bacs uses an SSL encrypted system, Bacstel-IP, to protect all of its data and users. The system requires an encrypted password to gain access and is monitored at all times.
Bacstel-IP is the secure online channel that allows businesses to submit payment instructions to BACS. In addition, it uses SSL (Secure Sockets Layer) encryption to ensure data is transmitted securely.
Interlinked with this system are two additional security method types:
- PKI (digital certificate and signature) credentials, allow the user to sign and send submissions, collect or view reports and maintain reference data.
- Alternative Security Method (ASM) allows the user to collect reports as well as view and update contact details through the Bacs Payment Services Website (PSW), which is accessed using user identification and passwords.
Overall, these layers of advanced security enable users across the Bacs payment system, from customers and businesses to Bacs payment service providers, to make and receive payments safely and efficiently.
Interbacs provides safe Bacs payment services
Interbacs was one of the first Bacs-approved bureaus in the UK. The regulations that define a Bacs-approved bureau are extremely rigorous, with the bureau consistently meeting the highest standards of compliance.
If you’re looking for a Bacs payment services provider that collaborates effectively with clients, then Interbacs is the service for you. If you choose to work with us, you’ll be assigned a fully Bacs trained team member who will guide you through the entire process.
With a host of benefits, such as free consultations, Direct Debit training and expert advice, you can make the most of this flexible and productive service.
Our friendly team is always on hand to listen to your requirements and deliver efficient, sensible solutions. You can also explore our Solution Finder to discover payment management services that can transform your business.
Contact our team today to discuss how streamlining your payment processes can reduce administrative burdens and free up time to achieve your business goals.
